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Auto Industry of Uzbekistan to Ramp up Production

Botschaft Usbekistan, December 29, 2015

Two country's largest automotive manufacturers GM Uzbekistan and JV MAN Auto Uzbekistan have announced plans to boost their presence in the national market and use local production capacities to increase exports.

The recent International Investment Forum in Tashkent has determined the development of the domestic economy for many years to come. Uzbekistan Today is launching a series of stories dedicated to the agreements reached at the forum, and their implementation.

Today, we are introducing you to the automotive industry, which unveiled its export programs at the forum.

For example, the German engineering company MAN Truck & Bus is planning to turn Uzbekistan into the export hub for promoting its products to Central Asian markets. Today, Uzbekistan is seen as a kind of an entry point for MAN exports to Tajikistan and Kyrgyzstan, and to Kazakhstan since September 2015.

The key mission of the company comes to the development of new export development strategy, which would position the joint venture in Uzbekistan as a platform for the further expansion of its presence in the region and in the local market.

Uzbekistan ranks among the top 10 leading markets of MAN. This year, the company has released the 5,000th truck at its plant in Samarkand, and brought the country’s assembly capacity to 3,000 items of heavy equipment annually.

The two projects that have been launched this year, are regarded as key points of growth in the short term. They envisage the production of two types of buses and the start of localization of trucks.

In the next two years it is planned to establish the production of stamping, metal, plastic and other components, as well as truck cabs. By the end of 2020, Uzbekistan will produce interior and exterior cockpit parts, propeller shaft, radiators, fuel tanks, steel wheels and other components.

Uzbekistan promises to rank among the leaders in the production of buses. As an absolutely new type of such vehicles, MAN Lion`s CNG is currently being tested. It has won the title of ‘Top Bus-2015’ at the annual competition Bus Euro Test. A successful combination of a low-floor chassis and advanced CNG technology is seen as its main advantage, which increases the operating efficiency of the bus by 40%, compared to petrol or diesel run buses.

A semi knocked down assembly of buses will start next year in Samarkand. The first batch will comprise 50 buses. The company is not going to stop there, and is intending to launch the production CNG-based tourist buses in Uzbekistan in the near future, as part of the further development of tourism and comfortable communication between cities.

Another car giant, GM Uzbekistan, has been implementing a special package of measures to overcome crisis in major export markets, which envisages the further expansion of the car range for the domestic and foreign markets, and enhancement of localization. Altogether, these efforts would provide the company with significant advantages, which will be applied when the situation on export markets stabilizes.

GM sees Uzbekistan as an important production base, since it ranks among the five countries with the highest sales of the Chevrolet brand. In 2014, the country ranked fifth in car sales, climbing by one position.

GM Uzbekistan has been making great efforts towards further localization. More than a half of 200 direct suppliers of components are located in Uzbekistan, producing nearly 40% out of the total 7,500 parts used in the production of cars.

The company is particularly proud by its automobile engine plant GM Powertrain Uzbekistan. It produces world-class 1.2 and 1.5 liter engines. Since its launch in 2012, the production capacity has increased to 260,000 The products are used in the cars that are assembled in Uzbekistan. Besides, a part of engines is exported to the United States for the after-sales maintenance.

The company currently manufactures 10 models of cars: Damas, Labo, Matiz, Spark, Nexia, Cobalt, Lacetti, Captiva, Malibu and Orlando.

Source: «Uzbekistan Today» newspaper

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