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Going full speed: Uzbek auto industry eyes to bounce back

Business Materials 26 July 2018 15:05 (UTC +04:00)
Uzbek automaker Uzavtosanoat JSC intends to attract third-party organizations and enterprises to localize components for cars
Going full speed: Uzbek auto industry eyes to bounce back

Baku, Azerbaijan, July 26

By Fikret Dolukhanov – Trend:

Uzbek automaker Uzavtosanoat JSC intends to attract third-party organizations and enterprises to localize components for cars, the Uzbek company said.

With this aim, Uzavtosanoat also invites all willing parties to cooperate in supply of household goods, stationery, spare parts for equipment, tools for assembling automobiles and general-purpose tools, measuring instruments, lifting mechanisms and spare parts for them, personal protective equipment, electrical goods, metal rolling of construction purpose, office equipment and consumables, chemical gases (argon, oxygen, propane, carbon dioxide), chemicals and reagents, paint and varnish materials, as well as in rendering services on setting up and assembly of various equipment.

On July 24, during a speech at the Nuclear Physics Institute of the Academy of Sciences dedicated to the tasks and problems of science development, President of Uzbekistan Shavkat Mirziyoyev touched upon the problem of the low level of localization of products of the Uzbek car industry.

"...We are proud to produce cars, although in fact we are assembling them. The first car factory was built over 20 years ago, but spare parts are still purchased abroad. The question is: where is the science, where are the enterprises that implement its results? Why the young people not going into science?" the president said.

This was Mirziyoyev's second speech, in which he expressed dissatisfaction with the Uzbek automobile industry.

On June 26, President of Uzbekistan Shavkat Mirziyoyev has delivered a serious blow to the country's auto industry, which has been rather chaotic recently.

Mirziyoyev noted that the automobile industry plays a vital role in the country's economy, however, production and exports have recently declined. The head of state criticized the widespread corruption, bribery, nepotism at all levels in the sphere.

The president reminded that there are a lot of debts in the structure of Uzavtosanoat JSC (the country's major car manufacturer). Several enterprises of the company completed 2017 with losses. For a number of years the export of cars was carried out at a price lower that the prime cost and no action was taken to actually reduce the latter.

We covered the developments around Uzavtosanoat in detail. The series of articles on the automotive industry of Uzbekistan was summed up to a logical conclusion, where we expressed hope that public criticism, coupled with the instructions of President Shavkat Mirziyoyev personally, will lead to qualitative changes in development of the industry.

Apparently, after the head of state outlined the necessary priority directions of activity in this area, Uzavtosanoat made appropriate conclusions.

Obviously, it was decided to start the changes with an increase in the level of localization of products, which, of course, is the right decision that can affect both the cost of production and the quality of products, and, ultimately, lead to the comprehensive development of the sphere as a whole.

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Follow the author on Twitter: @FDolukhanov

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