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Central Asia Autos Report 2010Published by: Business Monitor International Published: Nov. 10, 2009 - 44 Pages Table of Contents
AbstractThe effects of the economic downturn were seen significantly at the beginning of the year with carproduction and sales plummeting across the regions. In Uzbekistan, US-based General MotorsCompany (GM)’s local joint venture (JV) GM Uzbekistan saw production slumping at its Asaka plantby 13.9% in the first two months. However, throughout 2009, output picked up and the company was ableto post a year-on-year (y-o-y) growth of 7.8% for the period of January to July. There is uncertainty as tohow the bankruptcy of GM will affect operations in Uzbekistan. GM filed for bankruptcy in June 2009,but emerged from Chapter 11 bankruptcy protection the following month. While the government ofUzbekistan is adamant operations will remain unchanged, there is the possibility of a buyout of GM’sshare in the company with speculation that automotive supplier Magna and Russian based Sberbank areinterested.In October 2009 an Uzbek-South Korean enterprise was launched to produce light and lamp componentsfor cars in Namangan. The business, UzChasys, is a 70:30 JV between Kazakh car firm O’zavtosanoatand South Korean-based Chasys. The company is contracted to produce lighting components for vehiclesproduced at the GM Uzbekistan plant, but the technology used could also be adapted to produce lightfittings for a number of different models. Annual output capacity is anticipated to be 250,000 units and areturn on investment is expected to be seen after five years. Despite the economic downturn, Chang soDong, president of Chasys, is confident the market is growing in Uzbekistan and that there is the potentialto expand into other automobile components such as chassis and lifting jacks. In April 2009 it was announced that Indian industrial group Ashok Minda Group, based in New Delhi,would be expanding its operations by setting up a production facility in Uzbekistan as a means to supplycomponents to significant auto companies in Russia and the Commonwealth of Independent States. Operations are expected to begin by the end of 2009, with sales expected to reach US$32.55mn by 2010.Ashok sees the development as a natural progression of their aggressive expansion plans which they hopewill ultimately see them eventually move into the European markets. Meanwhile, in September 2009 it was reported that German firm MAN Nutzfahrzeuge and Uzbekistan'sstate-owned UzAvtosanoat had initiated a JV to manufacture trucks in Uzbekistan. Components will beimported from India and Germany and then assembled in Uzbekistan. Initial production should begin bythe end of October 2009 with an expected output of around 500-1,000 trucks per year. MANNutzfahrzeuge already has a presence throughout Central Asia with subsidiaries in Kazakhstan and localpartners in Turkmenistan. While there is some market stability seen in the automotive sector in CentralAsia, analysts believe the market has not yet bottomed out and it will be 2010 before a recovery will beseen. Get Full Details About This Report >> |
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