Document on e-bus manufacturing localization signed with BYD
According to the agreement, it is planned to establish local production in Azerbaijan by 2030 and gradually increase the localization level to 40%.
Increasing energy efficiency, improving the safety and environmental friendliness of the transport system, and reducing atmospheric emissions are among the main objectives of our country’s sustainable development. To this end, the Ministry of Economy, the Ministry of Digital Development and Transport and the Ministry of Finance are carrying out relevant work to renew our country’s bus fleet.
A ceremony was held to sign a “Project Implementation Agreement” with China’s BYD Company Limited (BYD) on the project to localize the manufacturing of electric buses in Azerbaijan. The agreement was signed by First Deputy Minister of Economy Elnur Aliyev, Deputy Minister of Digital Development and Transport Rahman Hummatov, Deputy Minister of Finance Azer Bayramov, Executive Director of BYD for Central Asia and the Caucasus Chao Shuang, founder and CEO of SARDA Group Rauf Khalilov and Director of Electrify Azerbaijan LLC Tariyel Rustamov. According to the agreement, the project provides for the production of electric buses in Azerbaijan and localization of spare parts, gradually increasing the level of localization to 40% by 2030.
Under the agreement signed with the company, 160 BYD electric buses have been delivered to our country as a pilot project within the framework of the COP29 conference and launched on route lines.
First Deputy Minister of Economy Elnur Aliyev emphasized that the main goal of the project is to provide our country’s public transport system with cleaner and more efficient electric buses while expanding local production potential. It was noted that the implementation of the project will create conditions for application of high technologies at new production sites to be established in Azerbaijan and will ensure creating of new jobs. It was stated that the signing of the agreement within COP29 once again proves our country’s commitment to global efforts to combat climate change.
Azerbaijan Investment Company OJSC will participate in the project of electric bus production in our country as a shareholder. BYD’s partner in the project is Electrify Azerbaijan LLC, owned by SARDA Group.
It is planned to invest roughly $17.1 million in the establishment of a joint venture for production of electric buses at a plant to be built by the Chinese company BYD in Sumgait Chemical-Industrial Park. Taking into account domestic demand and export opportunities, the company plans to increase annual production capacity to 500 units and create 600 new jobs.
At the same time, BYD plans to invest in new production areas to develop the value chain in our country. In the future, the company intends to cooperate in the production of electric light trucks, electric vehicles for municipal services and passenger electric cars.
It should be noted that BYD, founded in 1995, was the first company in the world to achieve a record sales of 3 million new energy vehicles in 2023, and the company is considered to be one of the world’s leading technology companies, implementing the latest innovations in automotive, electronics, electric batteries, renewable energy and railway transport.
