"Turkic car industry" prepares to conquer Eurasian market

The car industry of Uzbekistan, Kazakhstan and Azerbaijan will team up to implement the Turkic Auto Industry project, UzAuto Motors announced on its official Telegram channel.

At first, the production of the Chevrolet Onix model will start in Kazakhstan and Azerbaijan, while a distribution center for spare parts will be set up in Uzbekistan. This center will be focused on the Kazakh market. The general model range in this tripartite alliance can be expanded in the future, Podrobno.uz reports.

UzAuto Motors has already concluded an agreement with the Kazakh side represented by Allur Auto on the production of cars in Kazakhstan. Chevrolet Onix intends to take into service the SaryarkaAvtoProm plant, and this is not a SKD, but a small-unit assembly, which implies welding and painting of car bodies in Kostanay. The partners intend to develop mutually beneficial cooperation to deepen the localization of components and parts of cars through cooperation in Kazakhstan.

Onix assembly in Kostanay is expected to begin in the spring of 2023: on December 23, the Presidents of Uzbekistan and Kazakhstan, Shavkat Mirziyoyev and Kassym-Jomart Tokayev, remotely participated in the launch of a project to expand capacities for future production.

A little later, the production of Uzbek cars is planned to begin at the AzerMash plant in Azerbaijan, now a SKD is organized there: the tripartite alliance will initially work for the local markets.

In Kazakhstan, it is planned to produce up to 30 thousand Chevrolet Onix cars annually. It is about a quarter of the new passenger cars volume, which was sold in the country in 2021. At the same time, the Kazakh market is growing: in 2020, 83,7 thousand cars were sold there, and in 11 months of 2022, the Kazakh people purchased 109,9 thousand new cars, which is 2,9% more than in the same period in 2021.

The new car in terms of "price-quality" will be even more ideal "killer of competitors" in the markets, the union of car manifactures believes.