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Chinese, Azeri car manufacturers strike deal

AssA-Irada 12/05/2006 21:56

Up-to-date Chinese cars will be assembled in an automobile plant in Azerbaijan’s second largest city Ganja starting from June or July, as an agreement for 2006-2008 was signed between the Ganja Automobile Plant and China’s well-known Lifan Industrial Group on Thursday.

Under the agreement, the Chinese company will supply the plant with raw materials and spare parts to assemble 40 cars at the initial stage, director of the enterprise Khanlar Fatiyev said. The plant is authorized to export the assembled cars to Georgia, Russia, Iran and Kazakhstan, he said.

Fatiyev underlined that each car will cost $9,000-11,000 but the prices may go down due to customs duties, as the cheaper it will cost to import the spare parts, the lower the prices will be. A relevant appeal has been submitted to the Cabinet of Ministers, he said.

An executive of Lifan Industrial Group said the equipment and staff of the Ganja plant allow for assembling different types of vehicles. A thousand cars will be assembled per year in the plant that will cooperate with another Chinese company, Jan-Gan. Chinese specialists say the cars will be affordable for local customers.

Thus far, the Ganja Automobile Plant has signed agreements with two Russian companies. The assembly of Russian Oka cars was suspended in 2005, while that of UAZ mini-trucks is underway.

The Ganja plant is currently producing cars of Russian Vaz brand (“Zhiguli”) and plans to continue collaborating with the company.
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