A new automobile production facility will be opened in Kyrgyzstan, in which the Uzbek automobile company Uzavtosanoat, which produces Chevrolet cars at UzAuto Motors’ plants in Uzbekistan, acts as a technology partner. Automotive and commercial vehicle production organization announced Kyrgyzstan Cabinet of Ministers.
The new plant will be located in the village of Ak-Suu, Chui district, Moscow region, 50 kilometers from Bishkek.
It is stated in the message of the Kyrgyz government. The project is implemented in three stages, clarifies Tazabek, Kyrgyz edition, which refers to the report of Ainura Usenbekova, Deputy Minister of Economy and Trade of Kyrgyzstan.
At the first stage, it is planned to organize production according to the SKD method (large-scale assembly), with the production of up to 10 thousand cars and the creation of 500 new jobs in three years. Localization of production will not exceed 5-10% at the first stage, and it is planned to increase its level to 15-20% with the introduction of auto parts with the SKD method during the 4-5 years of the plant’s life. By then, production should be over 20,000 cars per year, which would require 1,000 new jobs.
Close assembly (CKD) will begin in the sixth year of the plant’s life as part of the third phase,
The planned production volume is over 30 thousand cars per year. Manufacturers residing in Kyrgyzstan will act as suppliers of components. Government officials said 2,000 more jobs are planned to be created.
As part of the agreement, Kyrgyzstan undertakes to exempt buyers from the components of VAT and customs duties for the manufacture of cars and the cars themselves, as well as from primary registration. Other benefits include the creation of preferences for government purchases of manufactured cars, the allocation of financing for car loans, the introduction of a recycling fee for the second year of production, and an increase in the registration fee for imported cars. January 1, 2023. About it on my Telegram channel said Kyrgyz Deputy Dastan Bekashev.
Two private companies (Nur JSC and DT Technik LLC) will participate in the production of cars on the Kyrgyz side. Nur company had previously cooperated with UzAuto Sanoat on the supply of components, its main activity is the production of electrical household appliances, as the deputy minister said. DT Technik is engaged, among other things, in the supply of equipment and wholesale of auto parts.
According to DT Technik director Farkhatjon Dosmatov, the price of cars produced in Kyrgyzstan will start at $13,000. transmits local news agency 24.kg.
“We plan to produce Chevrolet and Isuzu commercial vehicles in the initial phase. The cost of cars will range from $ 13,000 – cars, trucks – $ 28,000. said Dosmatov.
The Uzavtosanoat company has been producing licensed Chevrolet cars since 2007 under an agreement with the American concern General Motors. The Uzbek manufacturer’s factories are located in Asaka, Tashkent and Pitnak.
UzAuto Motors’ last major production launch at this time is the start of sales of Chevrolet Onix cars at the plant in Asaka.
Cars started to be produced using full cycle technology in February this year. It is planned to increase the domesticity level of the model from 50% to 70% by the end of the year.
Deputy Minister of Economy Kanat Abdrakhmanov said that production at the Kyrgyz-Uzbek automobile plant could start as early as 2023. writer Hit the lining.
Via Kyrgyzstan to Russia
Automobile expert Igor Morzharetto believes that some of the production at the new factory in Kyrgyzstan will be focused on Russia. The cost of delivering cars to Russia will be low due to the Asian country’s EAEU membership, and the experience of delivering cars through Kazakhstan shows that prices can be kept at a competitive level.
“The main export market is Russia, which can consume any amount of material.
Any project built by the Uzbeks is definitely not for the domestic market because the Kyrgyz market is very small,” Morzharetto says.
Sergei Burgazliev, an independent consultant in the automotive industry, the possibility of supplying new cars from Kyrgyzstan to the Russian market really exists, but he believes that everything depends on the agreements between Uzavtosanoat and General Motors.
Thus, UzAuto can supply cars without the American brand logo to a Kyrgyz factory, and Kyrgyzstan, which is a member of the customs union, can send them to Russia under a different brand.
“But if the agreement between Uzavtosanoat and General Motors clearly states the conditions not to facilitate the non-supply of these cars or the actions that could lead to the delivery of the products to Russia, then sending a car to us is associated with a very high risk. Uzbek company.
If there are no legal restrictions, they can try to supply the Russian Federation”, notes Burgazliev.
Sergey Tsyganov, author of the Russian Automobile Telegram channel, says that in order to supply cars to other countries, Kyrgyzstan will have to work on build quality, since it does not have the necessary experience.
“If the quality is insufficient, the local market will forgive it, but the external market is unlikely.
Kazakhstan, which produces Chevrolet cars at SaryarkaAvtoProm, is much closer to the Russian Federation and is also part of the EAEU. Kyrgyzstan is not a very suitable country to deliver cars to Russia. It makes more sense to bring cars from Kazakhstan, which will most likely be done, ”says Tsyganov.
The specialist explains that the construction of a new factory in Kyrgyzstan is carried out within the framework of the so-called Turkish Automobile Industry project, which is based on the production and distribution of Uzbek models in Central Asia.
While this region [Киргизия] Independent of automobile production, Uzbeks occupy this place.
They no longer have enough capacities and tool kits themselves, there are wild queues. For them, it’s more of a political and strategic decision. I’m sure sooner or later there will be news about production in Tajikistan after Kyrgyzstan,” says Tsyganov.
Covering neighboring CIS countries is the right strategic decision for business. Now UzAuto does not have tool kits, but in two or three years they will solve this problem and occupy all the markets where they will be as assembly plants, the addressee is sure.