BAKU, Azerbaijan - Škoda Group plans to establish a production and maintenance facility for public transport equipment in Baku that could eventually serve markets across the Caucasus and Central Asia.
Tomáš Ignačák, vice chairman of Škoda Group’s board of directors, outlined the plan during a meeting involving Czech Transport Minister Ivan Bednárik and representatives of Azerbaijan Transport and Communication Holding, or AZCON, according to Report.
The meeting was attended by AZCON Chairman Shahin Babayev, Baku Metro Chairman Vusal Aslanov and Azerbaijan Railways Chairman Rovshan Rustamov.
The proposal calls for investment in a joint venture with a local partner, followed by the gradual localization of manufacturing and maintenance. It also envisions transferring European technology, involving Azerbaijani suppliers, creating skilled jobs and helping train technical specialists.
Škoda presented options for modernizing Baku’s metro and suburban rail transport. The Czech group makes metro trains, low-floor trams, commuter trains, electric buses, trolleybuses and transport control and propulsion systems.
Ignačák said the company aims not only to supply vehicles but also to build long-term local cooperation in maintenance, technology and education.
The project remains at the planning stage. The sides did not announce a signed investment contract, the amount of the proposed investment, a specific site or a timetable for starting production.
AZCON and Škoda have held earlier talks. On May 22, 2025, the Azerbaijani holding said Babayev and Škoda Group CEO Petr Novotný discussed new metro stations and strengthening Baku’s existing transport infrastructure.
Škoda Group employs about 10,000 people and operates production plants in the Czech Republic, Finland and Türkiye. The company reported revenue of 1.45 billion euros and EBITDA of 143 million euros for 2025, including TEMSA.