Automotive industry in uzbekistan

Tashkent, Uzbekistan (UzDaily.com) -- Uzbekistan is the first state in Central Asia, which established mass production of cars and buses in short period of time. Automobile construction is high-technological industry, which promotes growth of technical and organizational level of all economy of Uzbekistan.
Recent developments in this sector of Uzbekistani economy shows that automobile industry of Uzbekistan successfully enters to new development stage.
In August 2010, GM Uzbekistan started to produce Chevrolet Spark. This is the seventh model, which is produced at the capacities of GM Uzbekistan. Total cost on the project on production of Chevrolet Spark in Uzbekistan made up US$124.455 million. Expected production volume of new model is 50,000 cars a year, of which 20,000 will be exported. Chevrolet Spark will be realized in internal market till the end of 2010. New model will be traded in internal market through dealer offices of Uzavtosanoat and exported through dealers of General Motors.
GM DAT and Uzavtosanoat also agreed to launch production of new sedan of business class GSVEM, manufacture of which will be started by the end of 2011.
In the first half of 2010, GM Uzbekistan cars entered to the top-10 of the most traded cars in Russia. GM Uzbekistan traded 32,316 cars in January-June 2010, which is up 17% year-on-year (27,642). The Uzbek carmaker claimed the seventh place on the volume of traded cars in the Russian market. The most traded model was Nexia.
In 2010-2011, UzAvtoSanoat will invest about US$10 million to localization of Lacetti production. During this period, the enterprises of the industry will start produce several spare parts for Lacetti model – saloon details, lighting equipment, steering and noise insulation materials.
The project implementation will allow to increase localization level of Lacetti model to 28%. Currently, the model is produced fully on imported components. The plant produced about 24,000 units of Lacetti. In 2010, the plant plans to produce 22,000 units of Lacetti against 19,400 units in 2009.
In August 2010, India’s Ashok Minda Group and Uzavtoprom signed constitutive documents on creation of UzMinda JV on production of automobile components at the territory of Navoi free industrial and economic zone.
The enterprise will produce speedometers and security systems for automobiles – set of locks and actuators for central locks.
The expected designed capacity of the Uzbek-Indian enterprise will be 250,000 automobile components a year. The plant will be commissioned by the end of 2010.
The project will be financed due to resources of Ashok Minda Group and attracted loans. The main part of products will be supplied to GM Uzbekistan within the localization of automobiles.
AFS-Research analysts believe that creation of automobile industry in Uzbekistan is one of the most successful projects, conducted in recent years.
Vycheslav LUCHKIN,
Senior financial analyst of AFS-Research.
Analysts of “AFS-Research” investment company in their reports considering issues such as investment attractiveness and main factors of Uzbek economy development and impact of the global economic crisis on its condition and prospects. Information used in these reports was received from local and foreign periodicals and Internet, data of State Statistics Committee of Uzbekistan as well as from calculation and analysis of “AFS-Research” analysts.
AFS–Research is investment company, providing wide-scale services for work in capital market. Main directions of activity are investment analytics, investment-banking services and investing consulting. Company web-site: www.afs-research.com.