The PSA Group will produce Peugeot and Citroën light commercial vehicles in Uzbekistan, following the signing of a joint venture agreement with JSC UzAvtoSanoat to create Uzbekistan Peugeot Citroën Automotive, an equally-owned company that will operate a production plant in the Jizzakh free economic zone, 200 km from Tashkent. The joint venture, whose initial capital will be 30 million euros, will require 130 million euros of total investments.
The French giant plans to bring its technological and intellectual capacities. It will set up processes and train staff. The joint venture expects that at least 50% of the parts will be produced locally within the first year, taking advantage of the network of SC UzAvtoSanoat and its suppliers. The site will have a production capacity of 16,000 vehicles per year, marketed in Uzbekistan or exported abroad.
"The light commercial vehicles segment has remained the only undeveloped segment in Uzbekistan," the Deputy Chairman of UzAvtoSanoat Rustam Yusupov said. "This project will allow us to make a major qualitative step in the development of the Uzbek automotive industry."
"This project is fully in line with our Push to Pass five-year strategic plan. This is an excellent opportunity to step up the PSA Group's affairs in the light commercial vehicles segment and is aimed at profitable growth in the region," Christophe Bergerand, the Vice President at PSA Group said. "We highly value the established constructive dialogue with Uzbek partners and President Shavkat Mirziyoyev’s personal support, which became the determining factor in the creation of the joint venture."
