GAZ Group to supply 900 buses to Iran

GAZ Group, a company of Russian Machines Corporation, which consolidates machinery assets of Basic Element group, has signed a Memorandum of Understanding with the municipal authorities of four Iranian cities. As a result of this cooperation, GAZ Group buses will be supplied to renovate the fleets of public transport in Iran. This project will be a new stage in the exploration of the Iranian market by Russian Machines businesses, in addition to cooperation in the field of railroad equipment and production of construction and road vehicles.

photo GAZ Group signed a Memorandum of Understanding with the mayors of Iranian cities Tabriz, Karaj, Qom and Urmia about the delivery of 900 LIAZ buses. The parties agreed both on sales of finished products and on delivery of СKD kits after establishing GAZ Group assembly operations in Iran. The specifications of the LIAZ bus models for delivery to the Iranian market will be determined by the technical working group that will include representatives of both sides. Deliveries are scheduled to begin already in 2017.

The Iranian delegation visited Likino Bus Plant and familiarized themselves with the experience of bus maintenance that GAZ Group is providing within the framework of the partnership with Moscow Government. The guests also got acquainted with the range of GAZ Group products during their visit to the Gorky Automobile Plant.

Manfred Eibeck, CEO of the Russian Machines Corporation:

- We consider the agreement reached by GAZ Group to deliver buses to Iran as a landmark event indicating the fact that our cooperation has entered into a new strategic stage. Iran today is a promising market for different directions of Russian Machines businesses. We are actively collaborating with the Iranian side in the field of railway carriage-building - starting from 2015, 272 railway car kits have been delivered to Iran by the RM Rail Holding, a number of new contracts with major transport operators is now in the final stage of discussion. In addition, more than for a year and a half we have been working with Iranian partners on road-construction vehicles. Our main goal here is to localize, to produce and to promote the TG series of graders within the territory of Iran. In 2017, it is scheduled to supply to Iran the СKD kits for the assembly of the first batch of motor graders.

Vadim Sorokin, GAZ Group President:

- We are interested in organizing throughout Iran a full distribution and high-quality after-sales service for all our products: light commercial vehicles, city buses and coaches, heavy trucks. We are also ready to supply YMZ engines to Iranian companies producing trucks, buses, agricultural machinery, specialized vehicles, electric generators and small boats. Due to the fact that we produce vehicles in different segments of the commercial transport, we are able to offer the Iranian clients a package solution, which will provide integrated transport service for their business.  

Seyed Morteza Saqaiannejad, Mayor of Qom City:

- I am very glad that cooperation between Russia and Iran is strengthening and developing. People in Iranian cities are little familiar with the Russian industry. And such visits are very useful to study the possibilities of our cooperation. Before the trip to Russia we carefully studied the potential of GAZ Group. As a result of the visit, we have strengthened our trust and we are looking forward to a long-term relationship. I would like to point out that we have found a high level of technology at GAZ Group plants. We saw that an impressive job was done to introduce the quality standards within the framework of cooperation with global OEM’s. I think your technologies are competitive versus the European ones.