Uzavtoprom, Azermash intend to launch full-cycle auto plant in Azerbaijan in 2027

BAKU. July 7 (Interfax) - Uzbekistan's Uzavtosanoat (Uzavtoprom) and Azerbaijan's Azermash are planning to construct a full-cycle automobile plant in Azerbaijan that should launch in mid-2027, Deputy Investment, Industry, and Trade Minister Khurram Teshabayev said.

"The main preparatory work has now been completed. Suppliers have been identified, and orders for technological equipment and production lines have been placed," Teshabayev said during an interview with Azerbaijan's Report news agency, adding that the new manufacturing complex would manufacture the Chevrolet Cobalt, among others.

Teshabayev said that investment in the project is estimated at $84.3 million. "After this, production will transition from semi-knocked-down assembly to a full-scale industrial cycle, which will significantly increase production volumes and expand the model range," Teshabayev said.

Teshabayev added that the automobile production project in the Ajikabul Industrial Park in Azerbaijan is one of the most successful examples of industrial cooperation between Uzbekistan and Azerbaijan.

"Launching the large-unit assembly plant for Chevrolet vehicles and Isuzu buses in 2022 confirmed the high potential of this cooperation and created a solid foundation for the project's further development. Today, the next stage begins with the construction of a full-cycle production plant. One of the key objectives of the second stage is to increase the level of production localization gradually. This includes expanding the use of components manufactured in Azerbaijan, creating a network of local suppliers, and mastering more complex technological processes. This will increase added value created domestically, contribute to the development of related industries, and foster the formation of a modern automotive manufacturing ecosystem," Teshabayev said.

The ministry said that more than 9,000 vehicles have been assembled at the existing plant in Ajikabul to date.

Established in 1994, Uzavtoprom unites enterprises in the Uzbek auto industry, comprises more than 20 entities, of which the largest are UzAuto Motors, BYD Uzbekistan Factory, and UzAuto Motors Powertrain.

OJSC Azermash was established in November 2017 to develop the automotive industry in Azerbaijan. The company's strategic partners include Ravon, Iran Khodro, and GAZ.