World’s First Oil Producer, Azerbaijan Will Now Produce EVs
The Caspian region petrostate Azerbaijan is enjoying an upsurge in the adoption of electric vehicles, supported by government incentives and commitment to reducing carbon emissions. Having just hosted the United Nations’ annual climate conference in the capital city, Baku, Azerbaijani drivers are even more excited about electric vehicles.
The Caspian region petrostate Azerbaijan is enjoying an upsurge in the adoption of electric vehicles, supported by government incentives and the country’s commitment to reducing carbon emissions. Having just hosted the United Nations’ annual climate conference in the capital city, Baku, Azerbaijani drivers are even more excited about electric vehicles, a big change for the world’s first oil-producing country.
Azerbaijan has been an oil producer for 178 years – a world record. The world’s first mechanically drilled oil well was established in Azerbaijan just 10 kilometers (six miles) west of Baku in 1846.
Now, a few numbers for context. A small nation of just 10.36 million people, Azerbaijan counted 1.73 million registered vehicles of all kinds as of last December, the latest date for which figures are available. That means that roughly one out of every six Azerbaijanis drives a car.
In that context, Azerbaijan imported 2,592 electric vehicles with a total value of US$104.23 million from January through October of this year, 2024, according to data from the State Customs Committee.
This is an increase of 167 electric vehicles (6.9 percent) and a rise of $5.9 million in value over the same period last year. In the six years from 2017 to 2023, Azerbaijan imported a total of 4,236 EVs, according to the State Customs Committee.
These early EV imports were Chinese brands like Zeekr, produced by the Chinese automaker Geely; Skywell, and BYD, the world’s top electric vehicle manufacturer in 2023 based on sales and market share.
This year, Chinese automakers are expected to generate the highest revenue in Azerbaijan’s electric vehicles market – US$376 billion.
Now, the 10-year-old Chinese automaker NIO is entering the Azerbaijani market with an expectation of success.
With Russia to the north, the Middle East to the south, Europe to the west, as well as Central Asia and China to the east, “Azerbaijan is a critical node in China’s Belt and Road Initiative,” Lihong Qin, co-founder and president of NIO, said.
China’s Belt and Road Initiative is a strategy that seeks to connect Asia with Africa and Europe through land and maritime networks with the goal of improving regional integration, increasing trade, and stimulating economic growth.
Launched in 2013 by President Xi Jinping, the development and investment initiatives were originally devised to link East Asia and Europe through physical infrastructure. In its first decade, the project has expanded to Africa, Oceania, and Latin America, widening China’s economic and political influence.
“AZERBAIJAN IS MAKING STRIDES IN GREEN TRANSITION AND SUSTAINABLE DEVELOPMENT, AND ITS PROMISING NEW ENERGY VEHICLE MARKET IS FLOURISHING WITH OPPORTUNITIES. NIO DESIRES TO BE A PART OF IT, CONTRIBUTING TO THE POPULARITY OF NEW ENERGY VEHICLES LOCALLY AND ACCELERATING THE COMPANY’S GLOBALIZATION.” – Lihong Qin, Co-founder and President, NIO
NIO and its new partner, Green Car, signed a strategic cooperation agreement November 15 at a forum in the Azerbaijan Pavilion at COP29, formally known as the 29th Conference of the Parties to the UN Framework Convention on Climate Change.
Present at the signing ceremony were:
– Zhao Yingmin, head of the Chinese delegation to COP29 and Vice Minister of China’s Ministry of Ecology and Environment
– Elnur Soltanov, CEO of COP29 and Deputy Minister of Energy of Azerbaijan
– Umayra Tagiyeva, Deputy Minister of Ecology and Natural Resources of Azerbaijan
– Narmin Jarchalova, COO of COP29
– Lihong Qin, Co-Founder and President of NIO
– Rustam Ibrahimov, COO of Green Car
Under the agreement, Green Car will serve as NIO’s national distributor in Azerbaijan from the second quarter of 2025, providing whole-package services for users in the Caucasus region.
“With rich experience and ample resources in the local market, our partner, Green Car, will facilitate our growth in Azerbaijan, and provide local users with smart EV products and services featuring innovative technology and experience excellence,” Qin said.
Working under NIO’s “comprehensive guidelines,” Green Car will start the local operations of products, services, and the community, and invest in and build NIO’s local sales and service networks, including battery charging and swapping facilities, and service centers.
At the same time, NIO will develop and authorize digital products for Green Car such as the NIO Azerbaijan website and mobile app to ensure a consistent user experience anywhere worldwide.
Green Car’s mission, the company said in a statement, is “to drive the transition to green transportation by offering innovative, eco-friendly vehicle options and supporting infrastructure that fosters a cleaner, more sustainable future.”
Addressing the signing ceremony, Green Car Chief Operating Officer Rustam Ibrahimov said, “The global automotive industry is undergoing an exciting revolution. NIO, as a global smart EV company, is impressive in the innovation in core technologies and user experience. Green Car shares NIO’s vision of sustainability, and we look forward to jointly promoting Azerbaijan and the Caucasus’s transition to EVs.”
On the same day, Qin spoke at the forum “Blue Sky Coming: Shaping the Future of Smart EV” in the Azerbaijan Pavilion of COP29, introducing NIO’s innovation in technologies, products, services, and the community, and the company’s ESG initiatives.
As a proud member of Green Car Park of COP29, NIO says its electric vehicles EL8, ET7, and EL6 provided premium mobility services for heads of state, government officials, and distinguished guests from around the world.
By November 15, 2024, NIO had introduced six models – the NIO EL8, ET7, EL7, ET5, ET5T, and EL6 – to 10 European countries. In October, NIO announced its entry into the Middle East and North Africa (MENA) region. The company is starting comprehensive business operations in the United Arab Emirates in the fourth quarter this year.
NIO’s strategic partnership with Green Car further extends its global reach, Qin said. “Moving forward, the company will push forward the development of and innovation in core technologies, serve users in more countries and regions, contributing to global sustainability and safeguarding the blue sky shared by all.”
Founded in November 2014, NIO is the first Chinese new energy vehicle company to join the Science Based Targets initiative. This collaboration between the Carbon Data Project (CDP), the United Nations Global Compact, World Resources Institute, and the World Wide Fund for Nature (WWF) has attracted more than 1,000 companies to join the initiative to set a science-based climate target.
NIO has been adhering to green and low-carbon production and operations and pushing for a greener supply chain and a more sustainable value chain with its partners. As of the end of September 2024, the company had filed for and obtained over 9,200 patents.
Azerbaijan to Produce Electric Dream Buses
The Chinese new energy vehicle (NEV) company Build Your Dreams, BYD, supplied 160 of its K9UD electric buses to the UN’s annual climate summit, COP29, which wrapped on Sunday, after two tense weeks of talks resulted in a climate finance agreement. The buses were delivered to Baku ahead of the conference, which hosted over 72,000 delegates and 80 heads of state and government. BYD electric buses transported delegates between the COP29 venue and their hotels. Now that COP29 has ended, the quiet, clean electric buses will ply the streets of Baku.
November 13 on the sidelines of COP29, Azerbaijan’s Ministry of Digital Development and Transport signed a project implementation agreement with BYD to localize manufacturing of the electric buses in Azerbaijan.
Next year, BYD plans to establish a commercial electric bus manufacturing base in Azerbaijan’s Sumgayit Industrial Park about a one-hour drive north of Baku. The company expects to produce about 200 electric buses a year between 2025 and 2028 for purchase by Azerbaijan.
BYD will create a joint venture with Electrify Azerbaijan, part of the Sarda Group, for this project, electrive reports.
In total, Azerbaijan has announced that it will replace 3,000 petrol-fueled buses with electric ones. Plus, further expansion is planned for the cooperative relationship between Azerbaijan and BYD.
From 2026, the partnership will cover the production of low-tonnage electric trucks, utility vehicles, and electric passenger cars as well as electric buses. From 2028, the company will also assemble batteries for energy storage systems. Azerbaijan has planned a joint venture with an additional investment of about US$60 million for these future projects with BYD.
BYD first proposed the solution of “urban bus electrification” in 2010, and the idea took hold. Now BYD electric buses have been operating in over 400 cities across more than 70 countries worldwide, such as Amsterdam in The Netherlands, London in the UK, Tokyo, Japan, and Sao Paulo, Brazil, with over 80,000 electric buses delivered to customers.
Chunlong Tian, general manager of BYD’s Commercial Vehicle Operation Division, said, “BYD has always adhered to the concept of green travel.”
“THROUGH THIS PARTNERSHIP WITH THE AZERBAIJANI GOVERNMENT, WE HOPE TO PROMOTE GREEN AND SUSTAINABLE DEVELOPMENT IN AZERBAIJAN AND CONTRIBUTE TO THE LOW-CARBON AND ENVIRONMENTALLY FRIENDLY HOSTING OF THE COP29 SUMMIT. IN THE FUTURE, WE LOOK FORWARD TO FURTHER COOPERATION WITH THE AZERBAIJANI GOVERNMENT IN LOCAL PRODUCTION, PROVIDING LOCAL CITIZENS WITH SAFE, COMFORTABLE, GREEN, AND LOW-CARBON TRAVEL OPTIONS THROUGH ADVANCED TECHNOLOGY AND QUALITY PRODUCTS.” – Chunling Tian, General Manager, BYD Commercial Vehicle Operation Division
Sources: Statements from Lihong Qin, Rustam Ibrahimov, Chunlong Tian, and additional material from the Azerbaijani company Green Car, NIO, BYD, China Daily, Azernews, Trend News, Azerbaijan State Customs Committee, electrive, Beijing Asian Automotive Association’s ChinaBuses.org
Tags: Azerbaijan, Baku, battery swapping, BYD, COP29, climate, climate change, electric cars, electric buses, electric trucks, Green Car, NIO, United Nations
By Sunny Lewis, journalist, founder of Environment News Service (ENS) at: ens-newswire.com, and expert in the field of sustainable mobility in the United States and around the Pacific Rim.
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