One of the capital market experts in Uzbekistan, Bekhruzbek Ochilov, commented on the decrease in net profit of UzAuto Motors in the first half of this year.
The net profit of UzAuto Motors for the first half of 2023 decreased by 19%, despite the increase in revenue due to the rise in the cost of the sold products.
"According to the economic research by the Federal Reserve Bank of St. Louis, there was a decline in prices for auto parts. I assume that UzAuto Motors produced many automobile semi-finished products lacking the necessary semiconductors," said Bekhruzbek Ochilov.
In the first half of 2023, losses in the automotive industry, which could be attributed to the semiconductor shortage, fell to approximately 524,000 units worldwide.
According to the global research by S&P, the shortage of semiconductors in the automotive industry overall is depleted (but it still exists).
Another obstacle that may hinder UzAuto Motors in the second half of 2023 is the modernization of production lines, as indicated in the report 'Kursiv Uzbekistan.' This will inevitably lead to a reduction in the number of produced automobiles.
"Nevertheless, I am optimistic that UzAuto Motors' stocks will continue to grow because the company has not fully realized its potential," concluded the expert.
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