BYD to sell electric buses to Azerbaijan and plans to set up a factory

Azerbaijan transport operator BakuBus wants to buy 160 electric buses and 100 chargers from BYD. The buses should hit the road in Baku by the end of October, just before it hosts the 29th United Nations Climate Change Conference. Moreover, BYD is looking to sell further buses to Azerbaijan and produce them locally.

According to the Ministry of the Economy of Azerbaijan, the Chinese company will start setting up production and “gradually localizing spare parts starting in 2025.” Moreover, the country will purchase 200 electric buses from BYD every year from 2025 to 2028. The first batch of 160 units will be imported.

BYD plans to set up local production of electric buses and localise spare parts in Azerbaijan beginning next year. BYD will create a joint venture with Electrify Azerbaijan, part of the Sarda Group company, for this project. The duo will build an electric bus plan in the Sumgait Chemical Industrial Park in Sumqayit, just about a one-hour drive north of Baku.

The jointly owned electric bus plant of BYD and Electrify Azerbaijan will entail an investment of approximately $34 million. The project aims for 40% localisation in terms of the production value, meaning the buses’ total costs, by 2030. This suggests the local factory may only assemble electric buses. It will have an annual production capacity of 500 units, and this output will cater to export demands as well. Localising the BYD electric buses will give jobs to 800 people in the country.

BYD says in its announcement that the 160 electric buses it will initially sell to Azerbaijan will be the 12-metre K9UD model and that it will start shipping them this month. According to the company’s commercial vehicle website for Europe, the K9UD is a 12-metre low-floor electric bus with a maximum passenger capacity of 90 people. It uses an LFP battery pack with an energy storage capacity of 422 kWh and two 150 kW motors. It can deliver a range of up to 450 km.

Azerbaijan recently announced that it wants to replace 3,000 ICE buses with electric ones. The cooperation between Azerbaijan and BYD will not end with localising electric buses. From 2026, the partnership will cover the production of low-tonnage electric trucks, utility vehicles, and electric passenger cars as well. From 2028, the company will also assemble batteries for energy storage systems. Azerbaijan has planned a joint venture with an additional investment of about $60 million for these future projects with BYD.

economy.gov.az, cv.byd.com (in Chinese)