The first Chinese cars assembled in Uzbekistan are hitting the road, as Chinese companies expand manufacturing in Central Asia while Russian companies pull out under sanctions.
Four Chery-branded SUV models assembled at the ADM Jizzakh plant went on sale on October 27, Spot.uz reported.
Chery is offering soft credit to help customers pay prices ranging from $26,000 for the Tiggo 7 Pro model to $40,000 for the Tiggo 8 Pro Max. With a 25% down payment, the interest rate is zero if repaid within 36 months or 7% within 48 months. Rental is also available.
Chery models are more expensive than vehicles produced locally by the state-owned UzAuto Motors. The popular Nexia Chevrolet sells for around $11,000.
Chery plans to open 23 dealerships in Uzbekistan by 2024. The first is already working in Tashkent, and more are expected to open this year in Andijan, Fergana, Namangan and Samarkand.
Attracted by benefits such as lower tariffs, Chery Automobile Co., headquartered in Wuhu, in the spring signed a OK to assemble cars at the Jizzakh Free Economic Zone plant. Assembly began in August.
The Chinese manufacturer BYD Auto has also recently sign an agreement on car assembly in Uzbekistan with UzAuto Motors.
Chinese companies are spy on a gap in Central Asian markets due to international sanctions over Moscow’s war in Ukraine crippling the Russian automotive industry.
Many popular Japanese and European models sold in Kazakhstan were previously made in Russia, where factories had to suspend production due to sanctions. The Russian government has also banned exports of certain spare parts.
With the delivery of cars from China to Kazakhstan taking no more than 18 days, Chinese manufacturers are well placed to fill the void.
Kazakh factories too. Manufacturing in Kazakhstan increased by 25% in the first three quarters of this year, according to Data of the Association of Automotive Enterprises of Kazakhstan (AKAB).
The production of SaryarkaAvtoProm in the northern Kostanay region, which assembles Chinese cars under the JAC brand, increased by more than 28%.
JAC was the fifth best-selling car in Kazakhstan in the first nine months of this year, according to AKAB Databehind Chevrolet, Hyundai, Kia and Lada.
The increase in sales of Chinese cars in Kazakhstan began even before Russia invaded Ukraine.
Chinese brands accounted for 3.4% of new cars sold in Kazakhstan in 2021, or more than 4,000 units, double the figure from the previous year.
Chery has done particularly well since striking a distribution deal with Astana Motors last year, quickly become one of the 10 best-selling brands in Kazakhstan.
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In September, Chery sales increased more than any other brand, the AKAB said, propelling it to fifth place in sales. JAC was in sixth place.
“The six Chinese car brands represented in Kazakhstan sold nearly 5,000 in the eight months of 2022,” Astana Motors said last month. The figure has already exceeded the total sales of last year.
During a visit to Kazakhstan by Chinese President Xi Jinping in September, Astana Motors sign an agreement to build a car manufacturing plant under the Chery, Changan and Haval brands, which it already distributes.
After its commissioning in 2025, the factory in the Almaty Industrial Zone will have a production capacity of 90,000 cars per year, 60% of which will be exported to post-Soviet countries.
The Russian Lada, still popular in Kazakhstan, was still sixth in sales last month, but sales were down 55%.
As for year-to-date performance, Lada ranks fifth, with Chery and JAC hot on its heels in sixth and seventh place respectively.
By Eurasianet.org
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