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Uzbekistan eyes increasing competition in automotive industry

Transport Materials 19 January 2021 10:59 (UTC +04:00)

BAKU, Azerbaijan, Jan. 19

By Klavdiya Romakayeva - Trend:

Uzavtosanoat plans to implement a joint project with the Netherlands, within the framework of which 80 percent falls on the products of the automotive industry and 20 percent on the production of agricultural machinery, Trend reports referring to spot.uz.

According to the information, the share of the automotive industry in the economy of Uzbekistan amounts to 11 percent.

First Deputy Chairman of the Board of Uzavtosanoat Abduvakkos Rafikov said that the transformation of the automotive industry implies the development of the sphere with the participation of private entrepreneurs.

“In the near future, several competitors are expected to enter the market and this is the most correct way since competition will force the domestic automaker to look for its place in the market,” he said.

It was reported that since last year, the sphere of agricultural machinery has been transferred to Uzavtosanoat. It is expected that this sphere has more prospects in the automotive industry since the needs for agricultural machinery of local farmers are not fully satisfied.

It was also noted that last year, the automotive industry managed to attract $107 million of foreign investment, due to which five projects will be implemented.

Deputy Chairman of the Board of Uzavtosanoat added that an example of successful localization is the Corporation Lab, established in the Bektemir district of the capital, which produces over 6,000 types of parts for the automotive industry.

“To date, conditions for the localization of production of 80 types of parts have been preliminarily agreed with 12 enterprises, as a result of which the production of parts is expected to replace their export by $15.6 million,” he noted.

Furthermore, the goal of the reforms carried out in Uzbekistan’s automotive industry is to increase competition and drive its localization, which still remains at the level of 20 percent in the industry.

Earlier it was reported that it is planned to launch several private car production facilities in 2021-2023. BAIC Group, Changan Automobile, and other companies are indicated as foreign partners. Some projects have already been partially launched.

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