Electrify Azerbaijan Company and China's BYD Company Limited have signed an agreement to modernize Azerbaijan’s passenger bus fleet. The agreement covers the purchase of electric buses, their servicing, and the initiation of local electric bus production in Azerbaijan.

BYD plans to invest $60 million in Azerbaijan to establish production facilities for light electric trucks, municipal electric vehicles, and electric passenger cars by 2026. Additionally, energy storage battery production will begin in 2028. The company also aims to start local production of spare parts by 2025, with plans to localize 40% of bus production costs by 2030.

BakuBus will acquire 160 electric buses and 100 charging stations from BYD, with full operational capacity expected in Baku by October 2024.

Between 2016 and 2023, more than 61% of Baku's passenger bus fleet was renewed, with 76% of the buses running on liquefied natural gas (LNG). Full electrification of the fleet is planned by 2028.