A long-awaited joint venture between Kyrgyzstan and Uzbekistan for the production of Chevrolet and Isuzu cars is nearing completion, with operations set to commence in the second quarter of this year, the Times of Central Asia reported. The factory, strategically located near Bishkek, marks a milestone in the automotive industry of the region.
The genesis of this collaboration traces back several years when the governments of Kyrgyzstan and Uzbekistan inked an agreement to establish the plant. Since then, efforts have been underway to address legal intricacies and investment concerns, alongside discussions on taxation and operational frameworks. Although initial plans aimed for a launch last year, construction delays extended the timeline.
Uzbekistan's established prowess in car manufacturing, evident through its joint venture with Daewoo since 2007, underscores the strategic importance of this new venture. Kyrgyzstan, positioned as a crucial market within the China-Kyrgyzstan-Uzbekistan corridor, offers logistical advantages that streamline the delivery of components, rendering assembly operations more cost-effective.
The Kyrgyz government has confirmed that the plant will commence operations in the upcoming months, with production slated to begin in late May. The initial phase will witness an investment of $50mn from Uzbekistan's UzAuto Motors, aiming to manufacture 10,000 cars in the first year alone, thereby generating over 1,000 permanent employment opportunities. The inaugural model to roll off the assembly line will be the Chevrolet Nexia R3.
As per the bilateral agreements, the initial phase will involve the importation of pre-assembled components from Uzbekistan. However, the subsequent stage, anticipated to kick off in four years, will witness the localization of production, with the plant expected to autonomously manufacture automobile components. This evolution aims to ramp up annual production to around 20,000 cars.
Looking ahead, the sixth year of operations envisages a comprehensive expansion of technological capabilities within the Kyrgyz plant. This includes vital processes like body welding and painting, with an estimated production output of approximately 30,000 cars annually.
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