A joint Kyrgyz-Uzbek factory for the production of Chevrolet and Isuzu cars is currently under construction in Kyrgyzstan.
Several years ago the Kyrgyz and Uzbek governments agreed to build the plant, near Bishkek. Since then the authorities of both countries have been solving legal and investment issues related to the project. They also discussed taxation of the new enterprise and a grace period to allow the plant to get up and running. As a result, at the beginning of 2023 Kyrgyz deputies approved the agreement and the builders started to erect production lines for the car assembly plant. The parties wanted to launch the plant last year, but the deadlines for completion of work were repeatedly pushed back.
Production of Chevrolet and Isuzu cars began in Uzbekistan in 2007 at a joint venture Daewoo plant. As representatives of the Uzbek company noted earlier, Kyrgyzstan is one of the priority markets for the expansion of production, as the China-Kyrgyzstan-Uzbekistan road corridor reduces the time it takes to deliver components, making car assembly cheaper.
According to the Kyrgyz government, the plant should begin operations in the second quarter of this year, and the first car should roll off the assembly line in late May. At the initial stage, Uzbekistan’s UzAuto Motors should invest $50 million and produce 10,000 cars in the first year — with the enterprise creating more than 1,000 permanent jobs. The first model produced at the plant will be the Chevrolet Nexia R3.
According to agreements between Bishkek and Tashkent, the first stage will include Uzbekistan bringing components in the form of large assemblies ready for installation into Kyrgyzstan. During the second stage, targeted to start in four years, the plant will produce automobile components independently — and produce about 20,000 cars a year. In the sixth year of operation, according to the plan, the Kyrgyz plant will perform a variety of technological operations, including body welding and painting, and should produce about 30,000 cars per year.
