Iranian Deputy Minister of Industries, Mining and Trade Mohsen Salehinia said Iran Khodro Group (IKCO) planned to open new production line in neighboring Azerbaijan in a bid to increase its annual production there.
“Iran Khodro is equipping its production line in Azerbaijan and plans to increase its daily output from 4 to 8 cars,” Salehinia said.
Noting that the second production line is scheduled to be launched in Azerbaijan in the near future, he said that IKCO would produce 2,500 cars a year.
In 2016 Azerbaijan’s AzEuroCar LLC and Iran Khodro signed an agreement to create a joint car plant in the Neftchala Industrial Area.
The plant with the capacity of about 10,000 cars per year is currently producing only four Iranian models including the Dena.
The plant produced the first cars in May. Some 20% of the vehicles were expected to be exported to other CIS countries including Georgia and southern Russia.
The cars produced at the Azerbaijani plant meet Euro 5 standard as per Azerbaijan’s laws. (Trend/Business World Magazine)
