A new automotive production facility is set to open in Kyrgyzstan, with Uzavtosanoat, the Uzbek company known for manufacturing Chevrolet vehicles at UzAuto Motors’ plants in Uzbekistan, serving as a technology partner.
The plant will sit in the village of Ak-Suu, within the Chui district near the Moscow region, about 50 kilometers from Bishkek.
The Kyrgyz government released the update, with Tazabek, a Kyrgyz news outlet, citing Ainura Usenbekova, Deputy Minister of Economy and Trade, as the source for the plan described in three stages.
In the first stage, production will proceed under the SKD method, enabling the assembly of up to 10,000 vehicles and the creation of around 500 new jobs within three years. Initial localization is projected at 5-10%, with ambitions to raise this to 15-20% over 4-5 years as auto parts are incorporated under SKD. By that time, annual output is expected to exceed 20,000 cars, accompanied by about 1,000 new roles.
CKD, or close assembly, is planned to begin in the sixth year as part of the third phase, with a target exceeding 30,000 cars annually. Kyrgyz manufacturers will supply components, and officials anticipate a further 2,000 jobs beyond those already planned.
As part of the agreement, Kyrgyzstan will exempt car components and the vehicles themselves from VAT and customs duties, along with reducing registration requirements. Additional benefits include preferences for government procurement of domestically produced vehicles, loan financing for buyers, a second-year recycling levy, and a raised registration fee for imported cars. Deputy Dastan Bekashev referenced these terms in a January 1, 2023 Telegram update, reflecting government expectations.
Two private firms, Nur JSC and DT Technik LLC, will participate in Kyrgyzstan’s side of the production. Nur has previously partnered with UzAuto Sanoat to supply components and mainly engages in electrical home appliances, according to the deputy minister. DT Technik specializes in equipment supply and wholesale auto parts.
DT Technik’s director, Farkhatjon Dosmatov, stated that the initial Kyrgyz-produced cars could start around $13,000, as reported by the local news outlet 24.kg.
Dosmatov added that the plan includes producing Chevrolet and Isuzu commercial vehicles in the initial phase, with passenger cars starting at about $13,000 and trucks around $28,000.
Uzavtosanoat has produced licensed Chevrolet models since 2007 under a deal with General Motors. Factories are located in Asaka, Tashkent, and Pitrnak. The latest UzAuto Motors launch at the moment is selling Chevrolet Onix from the Asaka plant. Full-cycle production began in February, with a goal to raise the domestic share of the Onix model from 50% to 70% by year’s end.
The Onix is built on the Global Emerging Markets platform, and UzAuto also uses the Chevrolet Tracker in its crossovers. Many UzAuto models were originally designed for Latin American markets, yet the plant also assembles Chevrolet Malibu sedans for the US market.
Deputy Minister of Economy Kanat Abdrakhmanov suggested that Kyrgyz-Uzbek production could begin as early as 2023, a point highlighted by a local writer.
From Kyrgyzstan to Russia
Automotive analyst Igor Morzharetto suggests that some output from the Kyrgyz plant may target Russia. Low transport costs are anticipated within the EAEU framework, and experience delivering vehicles through Kazakhstan supports competitive pricing for shipments.
Morzharetto notes that the primary export market points to Russia, which has the capacity to absorb substantial volumes.
Sergei Burgazliev, an independent automotive consultant, acknowledges the possibility of supplying new cars from Kyrgyzstan to Russia but emphasizes that success hinges on the terms of Uzavtosanoat’s agreement with General Motors and adherence to any restrictions intended to avoid channeling products under the American brand into Russia. If restrictions are absent, there could be opportunities, he adds.
Sergey Tsyganov, a Russian automotive analyst, argues that for Kyrgyzstan to export, build quality must improve since local experience is still developing. He suggests that if quality lags, the domestic market may tolerate it, but external markets likely will not. He notes that neighboring Kazakhstan, which also produces Chevrolet models, is geographically nearer and part of the EAEU, making it a more favorable route for Russian deliveries. Tsyganov believes Kyrgyzstan should consider partnerships with Kazakhstan for an initial export strategy.
The broader view is that the Kyrgyz project fits within a regional Turkish Automobile Industry initiative, aimed at distributing Uzbek-built models across Central Asia. While Kyrgyz production remains a domestic endeavor, Uzbek suppliers look to strengthen regional footprints through these plants. Industry experts believe eventual expansion to Tajikistan could follow, as the region pushes to consolidate production capacity and expand distribution networks across Central Asia.
In summary, the Kyrgyz-Uzbek collaboration marks a strategic step for regional automotive manufacturing. It signals intent to create jobs, promote local supplier networks, and potentially align with broader exports to nearby markets, subject to regulatory and bilateral agreements that govern branding, market access, and compliance across borders. The evolving plan reflects ambitions to leverage regional synergies and strengthen supply chains in Central Asia while navigating the complexities of international automotive partnerships.