Azerbaijan and BYD Company Limited Forge Alliance for Electric Bus Manufacturing with Sarda Group

In the Sumgayit Chemical Industrial Park, a groundbreaking initiative will commence to manufacture buses equipped with electric motors, marking a significant partnership with "BYD Company Limited," a renowned Chinese firm. This venture aims to explore the local manufacturing of necessary spare parts, leveraging Azerbaijan's domestic capabilities.

This project aligns with Azerbaijan's sustainable development goals, which prioritize enhancing the safety and environmental friendliness of the transport system while minimizing atmospheric emissions. In collaboration with "BYD Company Limited" (BYD), the Ministries of Economy and Digital Development and Transport are dedicated to modernizing the country's bus fleet through local production. Following a thorough evaluation, BYD was chosen from nine specialized contenders from China, Russia, and Hungary, based on their comprehensive proposals.

"Azerbaijan Investment Company" OJSC is set to be a shareholder in this electric bus production endeavor. "Electrify Azerbaijan" LLC, affiliated with the "SARDA Group," will serve as BYD's local partner. An initial investment of 34 million US dollars is allocated for establishing the production facility within the Sumgayit Chemical Industrial Park, with an anticipated annual output of 500 buses, addressing both domestic needs and export opportunities. The project is expected to generate 800 new jobs.

By the third year of production, there are plans to localize the manufacturing of electric bus spare parts, aiming for these to constitute 40% of the buses' total capital cost by 2030. Efforts to harness local potential in this area have already commenced.

Bus production is slated to begin in 2025. Moreover, in conjunction with the COP29 event scheduled in Azerbaijan in November 2024, the introduction and operational deployment of BYD electric buses are anticipated.

Looking ahead, there are plans to expand collaboration with BYD in producing various electric vehicles, including low-tonnage trucks, utility vehicles, passenger cars, and assembling batteries for electric energy storage, with an additional investment of around 60 million US dollars envisaged for these projects.

It's noteworthy that BYD, established in 1995, achieved a global milestone by selling 3 million new energy vehicles in 2023, positioning itself as a leading technology powerhouse with cutting-edge advancements in automotive manufacturing, electronics, electric batteries, renewable energy, and rail transport.