GAZ Group enters Iran and returns to Turkey

GAZ Group enters Iran and returns to Turkey

Vedomosti – GAZ Group plans to start bus production in Iran in 2017, as told by the company chairman Vadim Sorokin. “We are currently carrying out tests on our buses – Vector and Cursor – in order to make sure that our engines will allow us to operate these vehicles under any conditions” – Sorokin said, as quoted by Interfax.

The production site has not been chosen yet and the company is in search for a production partner. Negotiations are being conducted with Iran Khodro. According to Sorokin, the organisation of the assembly of buses and LCVs in one place would be the ideal case. “If we can’t achieve this, we’ll have to work with two or three partners” – he added. As stated by GAZ Group in 2016, a provisional agreement had been made as to the supply of 900 LiAZ buses to Iran and the possibility of the organisation of local assembly had been discussed, without specifying any time limits.

In the meantime, GAZ Group will resume GAZel production in Turkey in 2017 (manufactured in cooperation with Turkish Mersa Otomotiv since 2012). The company plans to manufacture around 500 vehicles in the country, as told by Sorokin. “Business was frozen during the time of political crisis between Russia and Turkey. We have already started sending people to Turkey and a full car production cycle will resume soon. The range of manufactured automobiles will also be expanded” – Sorokin said, as quoted by TASS. “Turkey is a good springboard for us. We can supply Western Europe with cars from Turkey with an import duty of 10%, instead of 22% from Russia” – said Sorokin during an interview with Vedomosti in 2014.