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Hyundai Motors to enter Uzbekistan thanks to economic reforms

Business Materials 2 November 2018 10:58

Baku, Azerbaijan, Nov. 2

By Fikret Dolukhanov – Trend:

Hyundai Motor Company Korea will enter the market of Uzbekistan from 2019, Kazakh media outlet kursiv.kz reported citing Director of Hyundai Auto Kazakhstan Denis Kolomatsky.

According to him, the company has already received the distribution rights and is currently carrying out organizational work.

“We are completing the internal certification now. We are delivering cars, completing the work on opening the first dealership center and are planning to start full-scale work from the beginning of 2019. Since we will be represented there as distributors, not manufacturers, at the initial stage we will not sell vehicles of Kazakhstan assembly, although negotiations are underway,” Kolomatsky noted.

According to him, the decision to enter the market of Uzbekistan is tied with the beginning of political and economic changes in the country.

“...The largest world companies rushed there. Hyundai Motor Company also expressed willingness to enter this new and promising market and offered Astana Motors to become a regional distributor. We also see potential in the region and are pleased to accept the offer of the Hyundai Motor Company,” Kolomatsky said.

He noted that the company is planning to begin with selling about 1,000 cars.

Astana Motors has been waiting for Uzbekistan to open its borders for car import for several years. The assembly plant in Kazakhstan was originally built keeping in mind the markets of neighboring countries. Uzbekistan commenced on liberalizing the market in back in autumn. In particular, the excise tax rate dropped to 2 percent of the customs value for new cars produced in Kazakhstan.

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Follow the author on Twitter: @FDolukhanov

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