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Uzavtosanoat JSC and Volkswagen Group Rus signed an agreement on cooperation in the production and sales of light commercial vehicles in Uzbekistan

04.03.2020


  • Production of light commercial vehicles will be launched in the Jizzakh Free Economic Zone
  • Plant production capacity of 20,000 cars per year
  • The project will be implemented on the basis of local enterprises of Uzavtosanoat JSC using production technologies of Volkswagen concern

The ceremony of signing a cooperation agreement between Uzavtosanoat JSC and Volkswagen Group Rus was held at Uzavtosanoat. The subject of the agreement was the organization of production of light commercial vehicles in the Jizzakh FEZ on the basis of the Jizzakh Automobile Plant LLC, as well as the establishment of a further sales system. The plant will specialize in the production of a full industrial cycle of light commercial vehicles of several models of the Volkswagen concern, designed to carry passengers and goods.

 

Volkswagen Group Rus will provide new modern production technologies and processes, as well as conduct training for employees. The plant will operate in accordance with modern Volkswagen standards in the field of production, quality management, procurement, supply and sales systems. The enterprise’s plans also include ensuring a certain level of localization by attracting domestic manufacturers of automotive components, which today comprise about 30 large factories owned by Uzavtosanoat JSC, and over 160 medium and small enterprises.

The production capacity of the enterprise will be up to 20,000 cars per year.

Uzbekistan, with a population of over 34 million people, has great potential for the further development of industrial production, small and medium-sized businesses. The market for light commercial vehicles in the country is a promising segment for growth.

“The segment of light commercial vehicles has remained the only undeveloped in the automotive market of Uzbekistan today. The implementation of this project will allow for a new qualitative step in the development of the domestic automobile industry. The new joint venture, along with an increase in the employment of the population, will contribute to the further growth of industrial production in Uzbekistan" said Shavkat Umurzakov, Chairman of the Board of Uzavtosanoat JSC.

Markus Ozegovich, general manager of Volkswagen Group Rus, said: “The automobile market of Uzbekistan is developing dynamically and has great growth potential in all segments. We are sure that both the products of our concern and the high level of service at dealerships will be fully appreciated by Uzbek consumers.”

Under the agreement, the parties agreed to start cooperation with the production and sale of the Volkswagen Caddy model in 2020, which will be offered in two versions: a 7-seater passenger station wagon and a cargo van. This model is intended for both commercial and family use. The car will be equipped with an economical 110 hp gasoline engine. and a volume of 1.6 liters. Fuel consumption in urban cycle mode is 9.3 liters per 100 km., On the highway - 6.1 liters per 100 km.

In addition, in the framework of cooperation, the possibility of production and delivery of other models from the wide range of Volkswagen Group in the future will be considered.

For reference: According to the results of 2019, the volume of Uzbek-German trade turnover reached 902.3 million dollars: export amounted to 47.6 million dollars (transport and tourist services, paper, textile products, food products, etc.), import - 854 , 7 million dollars (pharmaceutical products, electrical and mechanical equipment, vehicles, chemical products, etc.).

"Uzavtosanoat" Joint Stock Company

Uzavtosanoat was founded on March 17, 1994. Actually, the company unites 85 large and medium-sized enterprises and companies, including companies with foreign capital and technology from South Korea, Turkey, Italy, Germany, the Netherlands, the USA and the CIS countries. The main production companies of Uzavtosanoat JSC are UzAuto Motors JSC, Uz Track & Bus Motors JV LLC, SamaAvto JV LLC and UzAuto Trailler LLC. Uzavtosanoat enterprises produce products under such brands as Chevrolet, Ravon, MAN, Isuzu, Kamaz and Sinotruck in cooperation with leading foreign manufacturers. The main activity of the joint-stock company is the production of cars, buses, trucks and components. The total number of employees is more than 27 thousand, of which more than 5 thousand have been trained in the world's leading industrial companies.

Volkswagen Group Rus Company

VOLKSWAGEN Group Rus is a subsidiary of Volkswagen AG and combines the seven brands of the concern in the Russian market: Volkswagen - cars, Audi, ŠKODA, Bentley, Lamborghini, Ducati and Volkswagen Commercial vehicles. In 2019, Volkswagen Group's sales in the Russian market amounted to 233,600 cars. In 2019, 214,000 cars were produced at the company's production sites: 150,000 cars were produced at the company's plant in Kaluga, and 64,000 cars were manufactured at the production site in Nizhny Novgorod. According to the results of 2019, the market share of VOLKSWAGEN Group Rus LLC reached 12.9%. Car exports to Europe and the CIS countries amounted to 24,600 cars. In 2019, the Volkswagen Group Rus plant in Kaluga produced 143,500 engines, 24,000 of which were exported to production sites in Europe.

Concern Volkswagen AG

Volkswagen AG, headquartered in Wolfsburg, Germany, is one of the world's leading and largest European automakers. In 2019, 10 974 600 cars were delivered to customers around the world (in 2018 - 10 834 000 cars). The concern consists of twelve brands from seven European countries: Volkswagen - cars, Audi, Seat, ŠKODA, Bentley, Bugatti, Lamborghini, Porsche, Ducati, Volkswagen Commercial vehicles, Scania and MAN. Volkswagen has 123 plants in 20 countries in Europe and 11 countries in the Americas, Asia and Africa. 

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