The production of electric cars to start in Georgia in 2020
By Inga Kakulia
Monday, April 8
Memorandum of Understanding (MOU) was signed between “Aigroup” and the Chinese car production company, “Changan”. “Changan” products will be produced in Kutaisi, the Georgian town with a big industrial history. The product will be marked as “Made in Georgia” and will supposedly become the most important export to the European market in the following years. The Kutaisi factory will produce 4 different types of cars and will employee around 1000 people. Which is especially beneficial to the city such as Kutaisi where unemployment is a prominent issue. The factory will produce 40,000 cars yearly, half of which will be exported and 20,000 will be for local consumption.
“Changan” is one of the top four automobile groups in China and the top-selling domestic Chinese automotive brand, “Changan Automobile” boasts an industrial history stretching back 153 years. With 32 years of experience in building and selling passenger vehicles, “Changan” is an early leader in the Chinese auto industry. The Changan group dates back to the Westernization Movement that took place at the end of the Qing Dynasty(1636-1912). In November 1862, Li Hongzhang, a Chinese politician, general and diplomat founded China’s first western-style engineering firm and first state-owned western style engineering firm and first state-owned enterprise, and the beginnings of what has become Changan Automobile. This Factory is a big victory for Georgia. According to George Kobulia, The Minister of Economy and Sustainable Development, 5 European countries were competing for this deal and in the end, Georgia came out on top. According to Kobulia, these types of project are unique and bear great importance for our country and will bring about the full realization of the DCFTA potential. The factory will conduct a high-tech production and with time will become more and more localized.
At this moment the agreement entails the arrangement and montage of the cars, but According to the Minister of Economy and Sustainable Development, with time Georgia will try and localize the production of different parts of the cars as well.
This project is expected to boost a whole industrial development, while also creating new opportunities for the suppliers.
Kutaisi has a history of car production and it is as symbolic as it is beneficial for the new factory to open in an industrial heart of Georgia. The project is worth 10s of millions of dollars and is expected to grow into a 100 million dollars business.
“Changan” is one of the top producers of electric cars and is strategic partners with car industry giants such as “Volvo”, “Volkswagen”, and “Ford”.
The car factory is only a part of a much bigger plan aimed at turning Georgia into a sustainable country. Alongside this project, Government plans to incorporate more and more sustainability projects and help the green movement advances in the country.
During his speech The Prime-Minister, Mamuka Bakhtadze mentioned that there are multiple ecological challenges facing Georgia right now. The partnership with “Aigroup” will launch multiple projects to combat that.
The presentation of the “Aigroup” was held in Abanotubani, in Tbilisi. The President of Georgia, Salome Zurabishvili as well as The Mayor of Tbilisi, Kakhi Kaladze attended the presentation.
During the presentation, the project of “carsharing” was also announced. The project aims at the reduction of time and money waste. By using a specific app, the consumer can find the nearest “Aicar” vehicle and use it to get around the town. After the consumer is done using it the car can be parked at any local parking and left for the future user. All the vehicles are electric cars.
Within the “Aigroup” operates the “Aipower” which focuses on solar power stations and panels. As a first step, the company will be installing the solar panels on rooftops on multiple locations in Tbilisi for renewable energy sources.
“Aiproduction”, on the other hand, will focus on first Georgian electric car production. The company will work on creating a Georgian brand of cars that will also export its products to the Caucasus region as well as Central Asia and Europe.
"Some months ago we announced the vision of our Government towards Green Economy and Green Policy. At the same time, we pledged our commitment to address the stock of environmental problems. Green Economy will be the one to turn into a driving force of the national economy. I have always claimed and wish to repeat that Georgia has two assets. Firstly, it is our people and secondly, it is our unique nature. Georgian people have always had special spiritual bondage with nature and Georgians always felt harmonious with nature. The main challenge of ours in the 21st century characterized with a high-tech signature sign and accelerated development, is to preserve our unique nature for the new generations and make it sustainable for their benefit" said the Prime-Minister during the presentation.