GM Uzbekistan to sell cars for national currency inside the country

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TASHKENT (TCA) — Starting from June 1, 2017, the sale of the whole range of passenger cars produced by General Motors Uzbekistan joint venture will be carried out on the domestic market for the national currency, the soum. It is stipulated by the Decree of the President of Uzbekistan dated May 26 “On measures to improve pricing for products manufactured by General Motors Uzbekistan”, the Jahon information agency reports.

The document orders Uzbekistan’s state automotive company Uzavtosanoat JSC (which is General Motors’ partner in the joint venture) to: 

– deliver cars and accept payments under contracts concluded before June 1, 2017 strictly according to the terms and conditions stipulated in the contracts, with payment through international plastic cards;
– increase export volumes by further diversification of sales markets and the range of exported products, and strengthen positions in foreign markets;
– increase production volumes through implementation of investment projects aimed at developing new competitive products;
– reduce the share of imports and the cost of production by deepening the localization of production of component parts and assemblies, expand the inter-industry cooperation to develop and increase the production of basic raw materials and materials necessary for development of the automotive industry.

Uzbekistan is criticized for not having a liberal foreign-currency regime and for having a black-market foreign exchange rate along with the official exchange rate.

Uzbekistan is a leading manufacturer of passenger cars and commercial vehicles in Central Asia. In 2016, a total of 88.2 thousand cars, 3,420 ISUZU buses and trucks, and a thousand of MAN trucks went from the production lines of Uzbekistan’s automobile manufacturer JSC Uzavtosanoat.

Sergey Kwan

TCA