Agreement Signed with BYD for Localization of Electric Bus Production
An agreement was signed with BYD to establish local production in Azerbaijan, aiming to reach a 40% localization level by 2030.
Increasing energy efficiency, creating a safer and environmentally friendly transportation system, and reducing emissions are among Azerbaijan’s key sustainable development goals. To this end, Azerbaijan’s Ministries of Economy, Digital Development and Transport, and Finance have been working on upgrading the nation’s bus fleet.
A ceremony for signing the “Project Implementation Agreement” was held with China’s BYD Company Limited (BYD) for the localization of electric bus production in Azerbaijan. The agreement was signed by First Deputy Minister of Economy Elnur Aliyev, Deputy Minister of Digital Development and Transport Rahman Hummetov, Deputy Minister of Finance Azer Bayramov, Executive Director of BYD for Central Asia and Caucasus Zhao Shuan, Founder and CEO of SARDA Group Rauf Khalilov, and Director of Electrify Azerbaijan LLC Tariyel Rustamov. The agreement sets out plans for establishing electric bus production and the localization of spare parts, with a phased approach to achieve a 40% localization level by 2030.
Under the agreement, 160 electric BYD buses were brought to Azerbaijan as part of a pilot project at COP29 and have been added to the public transit routes.
First Deputy Minister of Economy Elnur Aliyev emphasized that the main objective of the project is to equip Azerbaijan’s public transport system with cleaner and more efficient electric buses and expand local production capacity. He highlighted that implementing the project will pave the way for advanced technologies in new production facilities and create new jobs. The signing of the agreement at COP29 reiterates Azerbaijan’s commitment to global efforts in combating climate change.
The project will see participation from the Azerbaijan Investment Company JSC as a shareholder in electric bus production. Electrify Azerbaijan LLC, part of SARDA Group, is BYD’s partner in Azerbaijan.
A joint venture with BYD will be established at the Sumgayit Chemical Industrial Park, with an investment of approximately $17.1 million. The factory is expected to have an annual production capacity of 500 buses and create 600 new jobs, considering both domestic needs and export opportunities.
Additionally, BYD plans to invest in new production facilities to expand the local value chain. The company envisions future collaboration on the production of electric light trucks, utility service vehicles, and electric passenger cars.
Note: Established in 1995, BYD achieved a record sale of 3 million new energy vehicles in 2023, making it a world leader. The company is recognized globally as a leader in automotive production, electronics, electric batteries, renewable energy, and rail transportation technologies.
