GM Uzbekistan raises prices for cars

By Azernews

By Kamila Aliyeva

GM Uzbekistan will increase prices for cars from August 1, 2018.

This was stated at the meeting of the International Press Club by the chairman of the board of Uzavtosanoat Shavkat Umurzakov.

The prices for the company's cars will grow by an average of 14 percent. He said that the company plans to provide discounts for consumers and reduce prices.

Explaining the increase in car prices, Umurzakov noted that this is not only related to the monopoly. He went on to say that the production capacity of the Asaka plant is 290,000 cars per year, but only 160,000 cars is being produced.

“Due to the fact that the plant only operates at 50 percent of its capacity, the cost of machinery becomes high. This affects the buyers' pocket and negatively affects the export potential of the enterprise,” he said.

The chairman added that GM Uzbekistan plans to hold a presentation of the Spark car with an electric motor in September 2018.

It is not known when the company will arrange the production of cars.

This is due to the fact that new technologies must be introduced and staff trained. The release of cars with an electric motor can start throughout in five years or earlier. During this time, the company intends to carry out preparatory work.

GM Uzbekistan, formerly known as UzDaewooAuto, was created in 1996 on a parity basis by Uzbekistan and South Korean Daewoo Motors.

In 2005, Uzbekistan acquired Daewoo's shares in UzDaewooAuto. Two years later Uzavtoprom (Uzbek Association of Automotive Industry Enterprises) and the U.S.-based General Motors signed an agreement to establish the GM Uzbekistan with an authorized capital of $266.7 million.

GM had previously held a 25 percent stake in the joint venture. Previously, it became known that Uzavtosanoat bought the 15 percent of shares.

Currently, 10 Chevrolet and Ravon car models are being produced at three production sites of the company.

The production of cars by General Motors Uzbekistan Ltd decreased by 7.4 percent in 2017 and amounted to more than 82,000, whereas in 2016, the production decreased by 52.5 percent, and in 2015 – by 24.5 percent.

In the coming years, the company intends to take a dominant role in the automobile market of Kazakhstan through an alliance with the Kazakh Allur Group of Companies JSC, and also to strengthen its position in the Russian market, including through the possible creation of an assembly plant near St. Petersburg.