Azerbaijan signs agreement with China’s BYD for electric bus production project

Azerbaijan has signed an "Agreement on Project Implementation" with China’s BYD Company Limited (BYD) to establish a domestic production line for electric buses, officials announced.

The agreement was signed by First Deputy Minister of Economy Elnur Aliyev, Deputy Minister of Digital Development and Transport Rahman Gummatov, Deputy Minister of Finance Azer Bayramov, BYD’s Executive Director for Central Asia and the Caucasus Chao Shuang, Founder and CEO of SARDA Group Rauf Khalilov, and Director of Electrify Azerbaijan LLC and Azerbaijan Energy Automotive Factory LLC Tariel Rustamov.

The initiative aims to enhance energy efficiency, safety, and environmental sustainability within the country's transport system, with a focus on reducing emissions as part of Azerbaijan’s broader sustainable development goals.

The Ministry of Economy, Ministry of Digital Development and Transport, and Ministry of Finance are collaborating on efforts to modernize the national bus fleet as part of this strategy.

Under the project, electric bus production will be launched in Azerbaijan, with plans to gradually localize up to 40% of spare parts by 2030.

As part of the agreement, 160 pilot BYD electric buses have already been imported and deployed on route lines in Azerbaijan in connection with the ongoing COP29 summit.

Elnur Aliyev, First Deputy Minister of Economy, emphasized that the primary goal of the project is to supply the country’s public transport system with cleaner, more efficient electric buses and to boost local manufacturing capacity. He noted that the project will foster the implementation of advanced technologies at new production sites and create job opportunities in Azerbaijan. The signing of the agreement during COP29, he added, reaffirms Azerbaijan’s commitment to global climate change mitigation efforts.

The Azerbaijan Investment Company will participate in the electric bus production project as a stakeholder. BYD’s local partner in Azerbaijan is Electrify Azerbaijan LLC, owned by SARDA Group.

The joint venture for electric bus production, to be established within the Sumgayit Chemical Industrial Park, will see a $17.1 million investment from BYD. The project plans to increase annual production capacity to 500 units and create 600 new jobs, accounting for domestic demand and export potential.

BYD also plans to invest in new production facilities in Azerbaijan to develop a value-added chain. Future cooperation is expected to include the production of light-duty electric trucks, electric vehicles for municipal services, and passenger electric cars.

Founded in 1995, BYD became a global leader with record sales of 3 million new energy vehicles in 2023. The company is a major global technology firm, known for its innovations in automotive manufacturing, electronics, electric batteries, renewable energy, and rail transit systems.