Azernews.Az

By Kamila Aliyeva

The prices for cars of GM Uzbekistan are not changed, the press service of Uzavtosanoat reported on August 1.

The company noted that it, in cooperation with relevant organizations and experts, is comprehensively studying the issues of prices for cars produced by GM Uzbekistan, taking into account the positive and negative aspects of this issue.

Uzavtosanoat JSC noted that information on prices for cars and the price list, widespread in social networks, is unreliable.

Chairman of the Board of Uzavtosanoat Shavkat Umurzakov said on July 30, 2018 that GM Uzbekistan will increase the prices for cars by an average of 14 percent from August 1, 2018.

He went on to say that the production capacity of the Asaka plant is 290,000 cars per year, but only 160,000 cars is being produced.

“Due to the fact that the plant only operates at 50 percent of its capacity, the cost of machinery becomes high. This affects the buyers' pocket and negatively affects the export potential of the enterprise,” he said.

GM Uzbekistan, formerly known as UzDaewooAuto, was created in 1996 on a parity basis by Uzbekistan and South Korean Daewoo Motors.

In 2005, Uzbekistan acquired Daewoo's shares in UzDaewooAuto. Two years later Uzavtoprom (Uzbek Association of Automotive Industry Enterprises) and the U.S.-based General Motors signed an agreement to establish the GM Uzbekistan with an authorized capital of $266.7 million.

GM had previously held a 25 percent stake in the joint venture. Previously, it became known that Uzavtosanoat bought the 15 percent of shares.

Currently, 10 Chevrolet and Ravon car models are being produced at three production sites of the company.

The production of cars by General Motors Uzbekistan Ltd decreased by 7.4 percent in 2017 and amounted to more than 82,000, whereas in 2016, the production decreased by 52.5 percent, and in 2015 – by 24.5 percent.

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

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