Documents on Cooperation with the Chinese BYD Company were signed

Documents on Cooperation with the Chinese BYD Company were signed

On July 2, a framework agreement was signed with the Chinese BYD Company Limited at the meeting held with the participation of Deputy Prime Minister of the Republic of Azerbaijan Shahin Mustafayev, to ensure the bus fleet in our country at the expense of local production.

The agreement was signed by First Deputy Minister of Economy Elnur Aliyev, Deputy Minister of Digital Development and Transport Rahman Hummatov, General Manager of BYD for Commercial Vehicles Tian Chunlong and Director of “Electrify Azerbaijan” LLC Tariyel Rustamov. The framework agreement envisages the purchase of electric buses, their maintenance, establishment and localization of their production in our country.

Addressing the meeting, Deputy Prime Minister Shahin Mustafayev noted that through joint efforts of the presidents of Azerbaijan and China bilateral relations between the two countries are successfully developing in all spheres. It was noted that our relations are based on the principles of friendship, mutual understanding and support.

It was highlighted that all the necessary conditions for the Chinese companies to operate easily and efficiently in Azerbaijan have been created, and numerous Chinese companies benefit from the favorable and transparent business environment created in our country.

Confidence was expressed that the cooperation with BYD Company will be successful and the documents to be signed today will contribute to the further enhancing of mutually beneficial relations between Azerbaijan and China.

The execution of the agreement just ahead of the 29th Conference of Parties to the United Nations Framework Convention on Climate Change (COP 29), which will be hosted by Azerbaijan this year, once again emphases our country's commitment to global efforts to combat climate change.

Under the agreement, BYD intends to invest in new production areas to develop the value chain in our country.

Thus, from 2026, the company plans to cooperate in such areas as the production of low-tonnage electric trucks, municipal vehicles with electric engines, electric passenger cars, and from 2028 - the assembly of batteries for electricity storage. Additional investments totaling about 60 million US dollars is planned to be made by the Company for these projects.

By the relevant Order of the President of the Republic of Azerbaijan, a decision was made to purchase electric buses from the company, which is also set to produce them in our country.

Once the local electric bus manufacturing enterprise becomes operational, domestic demand will be met through local production. At this stage, “BakuBus” LLC will purchase 160 electric buses and 100 chargers from BYD, with plans to deploy these buses on Baku city routes by October 31, 2024.

Within the framework of cooperation with BYD, it is planned to establish local production and gradual localization of spare parts by 2025. It is expected that by 2030 the share of localization will account for 40% of the total cost of buses. The signing of the project agreement is scheduled for September this year.

“Azerbaijan Investment Company” OJSC will join the project on production of electric buses in our country as a shareholder. “Electrify Azerbaijan” LLC, a member of SARDA Group will act as BYD’s partner in the project from the side of Azerbaijan.

Initially, Chinese BYD plans to invest $34 million to produce electric buses at a factory to be built in the Sumgayit Chemical Industrial Park, with an annual production capacity of 500 buses to meet domestic and export demands. The project is expected to create 800 new jobs.

“BYD” founded in 1995 has become the world’s first company to achieve sales of 3 million new electric vehicles in 2023, and the company is regarded as one of the world's leading technology companies with the latest innovations in the fields of car production, electronics, electric batteries, renewable energy and railway transportation.