Kazakh company to start sales of Hyundai cars in Uzbekistan

By Azernews

By Kamila Aliyeva

Kazakh company Astana Motors reached an agreement on sales of passenger cars of Hyundai brand in Uzbekistan. This was stated by head of the company Nurlan Smagulov, according to the Kazakh media.

“At present we have taken up Hyundai's distribution in Uzbekistan. It is a great challenge to enter a neighboring country with a large economy, a large population and represent the largest South Korean brand there,” he said.

Astana Motors has been eyeing Uzbekistan for several years in anticipation that the country will open borders for exports. The plant of the company for assembling cars was originally built with the expectation of entering the markets of neighboring countries.

Progress was outlined in the autumn of last year, when business liberalization began in Uzbekistan. Uzbekistan reduced the excise tax rate for new vehicles manufactured and imported from Kazakhstan since October 1, 2017. Under the document, the excise tax rate for new vehicles manufactured and imported from Kazakhstan (other than those intended for medical purposes) was reduced to 2 percent of the customs value.

Earlier, Kazakh automakers complained to Uzbek National Economy Minister Timur Suleimenov that since 1996 the enterprises of the Uzbek automobile industry exported to the Kazakh market more than 85,000 cars worth $720 million. Cars of Uzbek manufacturers are not subject to customs duties and excises when crossing the border of Kazakhstan. However, supplies of Kazakh automotive equipment to the Uzbek market equaled to zero as the access is blocked by harsh customs and tariff barriers.

Kazakhstan’s Union of automotive industry enterprises KazAvtoProm suggested then to consider the possibility of introducing response measures in relation to Uzbekistan.

The union asked the ministry to find negotiating opportunities for revising the Uzbek tariff policy in relation to Kazakh car industry products and assist in organizing its access to the Uzbek market in accordance with the principles of free competition.

Previously, media reported that production of trucks and buses Hyundai, as well as special vehicles will be established in Namangan, Uzbekistan. Within the framework of the project, Evergreen Motors Group planned to assemble trucks with carrying capacity from 1 to 50 tons, as well as intercity, international and tourist buses, special vehicles.

Astana Motors represents eleven automobile brands on the Kazakh market, including Hyundai, Subaru, BMW and MINI, Rolls-Royce, Toyota, Lexus, Jaguar Land Rover, Volvo.