BAKU, Azerbaijan, February 28. Azerbaijan’s raw materials will play a significant role in the establishment of the Turkic Auto Industry conglomerate, independent economist and researcher Ulugbek Kamaletdinov told Trend.
According to Kamaletdinov, the establishment of the conglomerate will not only open up prospects for Uzbekistan to spread the domestic automobile brand worldwide but will also increase trade turnover with Azerbaijan and Kazakhstan.
"The supply of components and motors for the members of the conglomerate will be carried out from Uzbekistan. However, the production of these parts will require a certain amount of materials, namely steel, aluminum, polymers, plastics, petrochemical products, as well as chemical fibers. Azerbaijan and Kazakhstan, in turn, are famous for the production of the mentioned materials," he said.
Kamaletdinov also noted that cost reduction by increasing the level of localization based on the resource capabilities of the three countries will make it possible to produce modern cars at an affordable price.
"Cheap cars, I believe, will find their buyer not only in the countries of the conglomerate but also beyond their borders: in Iran, Poland, Hungary, Ukraine, Georgia, Mongolia, and other countries," the expert added.
Kamaletdinov emphasized that the automotive industry will also create conditions for the member countries of the conglomerate to share their experiences in the field of technology and innovative development in related industries.
The conglomerate idea involves the establishment of cooperation between UzAuto Motors, the Azermash vehicle production plant, and Saryarka AvtoProm LLP, the largest automobile manufacturing enterprise in Kazakhstan.
The mentioned companies have been assembling Chevrolet cars from parts supplied by Uzbekistan, for several years now.
The idea to establish a conglomerate is based on strong ties in the machine-building of the three countries. For example, back in June 2022, a Memorandum between Azermash OJSC and UzAvtoSanoat JSC on localization of car production in Azerbaijan was signed by the Chairman of the Board at Azermash Emin Akhundov and Deputy Chairman of UzAvtoSanoat Sardor Tadjiyev.