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Uzavtosanoat, AllurGroup to take a dominant role in Kazakh automarket

1 December 2017 18:56 (UTC+04:00)
Uzavtosanoat, AllurGroup to take a dominant role in Kazakh automarket

By Kamila Aliyeva

Uzbek state firm Uzavtosanoat and Kazakh AllurGroup JSC signed a memorandum on mutual cooperation.

The document was signed by Deputy Chairman of the Board of Uzavtosanoat JSC Rustam Yusupov and Vice President for Business Development of Kazakh company Yuri Afanasyev.

AllurGroup together with Uzavtosanoat are developing a long-term cooperation strategy for increasing sales volumes and occupying the dominant market share in Kazakhstan.

In the course of the cooperation it is planned to modernize the technical base of the enterprises of the automotive industry in Kazakhstan.

In addition, the search for suppliers and buyers of products of Uzavtosanoat enterprises will be carried out at the production facilities of AllurGroup.

The memorandum provides for carrying out trade, intermediary and commodity exchange operations, including export-import operations, development and implementation of possible joint projects, exchange of information and provision of services.

The parties are considering the possibility of expanding the model range of products for the Kazakh market, according to the document.

Partners, depending on the market situation, their capabilities and other factors, will jointly consider the issue of increasing production volumes, as well as expanding the product line of Kazakh products.

Allur “Group of Companies” JSC is a shareholder of Kazakhstan's largest auto manufacturers, SaryarkaAvtoProm LLP and Agromashholding JSC, official distributors of SsangYong, Peugeot, Iveco, JAC brands and official dealers of Suzuki, Mitsubishi, Geely and Ford brands. These companies were the first companies in Kazakhstan where CKD production was launched.

Car manufacturing is growing at an unprecedented rate in Kazakhstan and significant expansion is planned in coming years.

As of November 2015, the number of registered vehicles reached 5 million automobiles, a 63 percent growth from 2013 (a 10 percent compound annual growth rate). On average, there is a car in every second household in the country.

However, official car dealers reported a decrease in the amount of sales of new cars by 28.2 percent in first quarter of 2017 compared to the same period of 2016. As much as 29 percent of all cars sold in 1Q2017 were assembled in Kazakhstan.

Uzbekistan vehicle market in 2015 boomed 25 percent due to the availability of GM Uzbekistan production for the sharp cut to export.

GM Uzbekistan, a joint venture between General Motors and Uzbek state firm UzAvtosanoat, has earlier begun selling all its cars in the Central Asian nation in local currency terms, but using an exchange rate far weaker than the official one.

GM Uzbekistan, which produces more than 200,000 cars a year, had previously sold only a few select models, mostly the most expensive ones for sums.

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Kamila Aliyeva is AzerNews’ staff journalist, follow her on Twitter: @Kami_Aliyeva

Follow us on Twitter @AzerNewsAz

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