GM Uzbekistan increases car production by over 0.2 times

Business Materials 27 March 2019 15:00 (UTC +04:00)

Baku. Azerbaijan. March 27

By Fakhri Vakilov – Trend:

General Motors Uzbekistan increased the production of passenger cars by 21.2 percent in February 2019 compared with the previous month and by 69.1 percent compared to February 2018 to 21,200 units, Trend reports with reference to Nuz.uz.

In total, in January-February 2019, GM Uzbekistan increased the production of passenger cars by 51.3 percent compared to the same period in 2018 to 38,600 units.

In December of last year, GM Uzbekistan set the historical maximum of monthly production of passenger cars, which increased by 29.7 percent compared to November to 34,100 units.

This amount was largely achieved thanks to a significant reduction in the assembly time of one car from 50 to 24 hours, which was achieved with the introduction of the “Just In Time” system, which implies timely delivery of components.

In total, in 2018, GM Uzbekistan increased the production of passenger cars by 62.9 percent compared to the previous year to 220,700 units.

General Motors Uzbekistan JSC with a design capacity of 250,000 cars per year was formed in 2008 on the basis of the Uzbek-Korean joint venture UzDaewooAuto after the bankruptcy of Daewoo Corporation that passed under the control of GM. The share of the Uzbek side was 75 percent and the US 25 percent.

Last year, Uzavtoprom bought first 15 percent of the shares from the American concern, and by the end of last year it brought its share in GM Uzbekistan to 100 percent. However, in the local market, cars will, as before, be marketed under the Chevrolet brand, on the external market under the Ravon brand.

Earlier it was reported that since 2019, GM Uzbekistan has been deprived of all tax preferences except for exemption from VAT, which have been in effect since the American corporation became a member of its shareholders and the company's rebranding in 2008.

Previously, a monopoly manufacturer of cars in Uzbekistan was exempted from paying all tax payments that were in force in Uzbekistan, as well as from mandatory contributions to the road fund of Uzbekistan.

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