CEO of Uzavtosanoat Ulugbek Rozukulov unveiled plans for the development of the automotive industry in an interview to the Uzbekistan 24 after a meeting with the president on Thursday.
According to him, as part of the localization program, the company has formed 16 working groups to study the capacities of 1,299 enterprises in provinces. The study found 79 enterprises that were capable to manufacture about 700 import-substituting components worth of $162 million.
Rozukulov said that such work would significantly reduce the volume of imports in the automobile industry. The Localization Assistance Center is also studying the possibilities for localizing basic products in the form of raw materials and materials.
Uzavtosanoat is a major importer of metal products worth $300 million per year, as well as electrical products for about the same amount, compound (polymer composition, mixture of copolymers and melts), synthetic fabric, artificial leather.
In this regard, the company expressed its readiness for offtake contracts with private suppliers in order to "be more reliable partners and create confidence in private enterprises that want to do this."
"If we work with local enterprises, this will create an opportunity to reduce imports by an average of $500 million per year," Ulugbek Rozukulov added.
The issue of reducing the cost price in the sector was also discussed at the meeting with the president - it is planned to reduce this figure by 2.5 trillion soums, he said.
He added that the president had given instructions on creating jobs. "The auto industry should not only be an industry that manufactures products, but also one that creates a system of jobs in the country. If earlier we talked about jobs at enterprises that manufacture final products, or localization enterprises, today the approach has been changed at the request of the president. And we believe that we should contribute to the creation of a service system in the regions, among other things, and this will greatly increase our opportunities [to create jobs],” said the head of Uzavtosanoat.
Ulugbek Rozukulov pointed out that this program provides for the creation of 1 million jobs directly and indirectly related to the automotive industry by 2030.
In the context of high volatility in the automotive markets and changes in the structure of production and consumption, the company has engaged an international consultant, the Boston Consulting Group (BSG), to develop a strategy until 2030.
“Within 2.5 months, the strategy will be completed [developed] with them. We will separately report a full package of documents related to the actions of both our enterprises and the measures that must be taken by the state, by banks, by manufacturers, what conditions are needed for us to further develop enterprises. In particular, it is necessary to modernize the sales system,” he said.
He pointed out to the large untapped opportunities and reserves in the automotive industry.
At a meeting on December 5, the president was presented with improved measures for the development of the automotive industry in Uzbekistan. Shavkat Mirziyoyev emphasized the need to work on product quality and increase the level of localization, taking into account the increased competition after joining the WTO.
