03/02/2020

February 27, 2020, Tashkent Uzavtosanoat JSC and Volkswagen Group Rus concluded a wide-ranging cooperation agreement for the production and sales of light commercial vehicles in Uzbekistan

  • Production of light commercial vehicles will be launched in FEZ Jizzakh
  • Production capacity of the facility will reach up to 20,000 cars per year
  • The project will be implemented with the use of Uzavtosanoat JSC's local facilities and industrial technologies of the Volkswagen Group

The ceremony of signing a cooperation agreement between Uzavtosanoat JSC and Volkswagen Group Rus took place today, March 02, at Uzavtosanoat. The subject of the agreement was the organization of production of the light commercial vehicles in FEZ Jizzakh at Jizzakh Automotive Plant LLC, as well as the establishment of sales distribution network. The facility will carry out the full industrial cycle for the manufacturing of the Volkswagen Group's light commercial vehicles of several different models, designed for passenger and cargo transportation.

Volkswagen Group Rus will provide modern industrial technologies and processes as well as training for employees. The facility will operate in accordance with the latest Volkswagen standards in the management of production, quality, procurement, supply, and sales. The plans also include implementing a certain level of localization by attracting domestic automotive part producers, which currently include about 30 large facilities owned by Uzavtosanoat JSC and over 160 medium and small enterprises.

The enterprise will be capable of producing up to 20,000 vehicles per year to be sold in Uzbekistan.

With a population of over 34 million people, Uzbekistan holds enormous potential for the further development of industrial manufacturing, as well as small and medium-sized businesses. The light commercial vehicle market in the country has considerable growth potential.

"The light commercial vehicles segment is the only one still underdeveloped in today's Uzbekistani automotive market," commented Mr. Shavkat Umurzakov, CEO of Uzavtosanoat JSC. "The implementation of this project will allow us to make a breakthrough in the development of the domestic automotive industry. The enterprise will create jobs and contribute to the further growth of industrial manufacturing in Uzbekistan."

Marcus Osegowitsch, General Director of Volkswagen Group Rus, added: "The automotive market of Uzbekistan is developing dynamically and holds great growth potential in all segments. We are confident that both the products made by the Group and the excellent service in dealer centers will be highly appreciated by Uzbekistani consumers."

As part of the deal, the parties have agreed to start their cooperation by producing and selling the model Volkswagen Caddy in 2020. The Volkswagen Caddy will be offered in two versions: a 7-seater passenger wagon and a cargo van. The vehicle is well-suited for both business and family use. It will be powered by a fuel-efficient 1.6 l 110 hp gasoline engine. Its urban fuel consumption is 9.3 l per 100 km, while the extra-urban figure is 6.1 l per 100 km.

Other models of the large model line-up from the Volkswagen Group will be added to the cooperation in future. 

Further information: In 2019, the volume of Uzbek-German trade reached 902.3 million dollars. Over the year, exports amounted to 47.6 million USD (transportation and tourism services, paper, textiles, foodstuffs, etc.), while the imports tallied 854.7 million USD (pharmaceuticals, electrical and mechanical equipment, vehicles, chemical products, etc.).

COMPANY OVERVIEW

About Uzavtosanoat

Joint Stock Company Uzavtosanoat was founded on March 17, 1994. The company currently comprises 75 large and medium-sized enterprises, including businesses with foreign capital and technologies from South Korea, Turkey, Italy, Germany, the Netherlands, the United States, and CIS countries. The company's main activity is production of cars, buses, trucks, and parts. The total number of employees is over 24,000, of which more than 5,000 have been trained by leading global industrial companies.

About Volkswagen Group Rus

VOLKSWAGEN Group Rus OOO operates seven brands in the Russian market: Volkswagen Passenger Cars, Audi, ŠKODA, Bentley, Lamborghini, Ducati, and Volkswagen Commercial Vehicles. In 2019, the Volkswagen Group's sales in the Russian market amounted to 233,600 vehicles. In 2019, 214,000 vehicles were produced at the company's facilities: 150,000 at the company's Kaluga plant and 64,000 at the Nizhny Novgorod operation. The market share of VOLKSWAGEN Group Rus OOO reached 12.9% in 2019. 24,600 vehicles were exported to Europe and the CIS countries. In 2019, the Volkswagen Group Rus facility in Kaluga produced 143,500 engines, 24,000 of which were exported to manufacturing locations in Europe.