GM Uzbekistan reduces car sales in Russia by 59%

Business Materials 18 May 2015 10:58 (UTC +04:00)

Tashkent, Uzbekistan, May 18

By Demir Azizov - Trend:

GM Uzbekistan (former UzDaewooAuto) sold in Russia some 7,064 cars, which is 59 percent less than in the same period of 2014, the Association of European Businesses (AEB) said.

In the first four months of 2015, GM Uzbekistan's share of products in the Russian market decreased to 1.4 percent from 2.1 percent earlier in the same period of 2014, and the joint venture took the 21st place in terms of the car sales in Russia.

The car sold 1,653 cars in April 2014, which is 63 percent less compared to April 2013, according to the committee.

Daewoo Gentra car produced by GM Uzbekistan took 25th place in the ranking of best-sellers in April. In total, some 1,245 cars of this model were sold in April, which is by 803 units less than in April 2014.

As previously reported, in 2014, GM Uzbekistan cut car sales in Russia by 38 percent as compared to 2013 to 37,695 units.

GM Uzbekistan or formerly known as UzDaewooAuto was created in 1996 on a parity basis by Uzbekistan and South Korean Daewoo Motors.

In 2005, Uzbekistan acquired Daewoo's shares in UzDaewooAuto. In 2007, Uzavtoprom (Uzbek Association of Automotive Industry Enterprises) and the U.S.-based General Motors signed an agreement to establish the GM Uzbekistan with an authorized capital of $266.7 million.

General Motors owns 25 percent shares in the GM Uzbekistan plus one share with a possibility of increasing it to 40 percent. At the moment, 75 percent of the shares belong to the Uzavtoprom.

GM Uzbekistan manufactures nine car models, including two models of Chevrolet - Captiva and Malibu using the semi knocked down (SKD) technology.

The car plant didn't publish any data on the sales of individual car models.