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Ministry of Foreign Affairs of the Republic of Uzbekistan

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Topical issues

19 July 2016

It has been 20 years since an automobile was produced in Uzbekistan for the first time

A quarter of a century ago, if you said to a person who by village understood a cotton field, by worker a cotton picker and by machine building a cotton harvester that in several years’ time Uzbekistan would join the ranks of countries producing cars, what would be his response?! Indeed, an agricultural republic, which had to import even wheat, set up the production of cars just five years after achieving independence. That was unprecedented. After all, car manufacturing is a very complex and modern branch of industry.

In a historically short space of time, consistent reforms aimed at establishing a law-governed democratic state and a strong civil society, at making systemic economic changes and at taking up a worthy position among developed countries were implemented in the country under the leadership of President Islam Karimov.

These reforms made it possible for the large creative and intellectual potential of the Uzbek people to be used for the development of their homeland and for the realization of their big dreams and for their living standards to be second to none.

Leading analysts of the world are trying to find out the secret of the country’s economic success. Although in the early 1990s, it rejected typical forms of transition to a market economy, a few years afterwards Uzbekistan was one of the first among the former Soviet republics to achieve GDP growth. This country created a strong social security system for low-income sections of its population and achieved self-sufficiency in such strategic products as oil and grain. All these were unexpected for the international community.

20 years ago, the Asaka automobile plant was put into operation. On 19 July 1996 the official opening ceremony of the UzDaewooauto joint venture took place in Asaka.

At that ceremony, President Islam Karimov said: “People in our country and far and close neighbours understand well that the construction of this large plant requires not only economic and financial possibilities but also big moral power and a big heart.”

Car manufacturing is regarded as one of the leading branches of industry in the world. According to reports, this branch of industry accounts for nearly 10 per cent of the world’s GDP and is capable of a deep systemic economic change. The most modern and advanced technologies are widely used in car manufacturing, and its products are of large added value. This serves to ensure the industry’s competitiveness.

Every job created in the branch leads to 7-15 jobs opening in other branches and to a rise in demand for highly qualified specialists in the country.

Results of programme for setting up local production

The setting up of local production of products is a priority area of developing the car manufacturing industry and raising its production potential. It makes the consistent and steady development of the economy possible. Thanks to it, new jobs can be created, and the process of introducing modern efficient technologies into the production sector can be accelerated. Most importantly, it serves to use local raw materials and production resources more widely, to encourage the production of competitive goods and to save foreign currency through reducing the import of components.

Today, bumpers, auto enamels, sealants, industrial paints, exhaust pipes, fuel tanks, fuel pumps, car windows and seats, car batteries, electric cable binders, car interior components, car exterior lights, fuel, oil and air filters, encapsulated glass, generators, compressors, wheel discs, car frame parts and other products are made at many enterprises in the country.

In the initial years, dozens of joint ventures such as Uzdongju, Uzdongwon, Uztonghong and Uzsemyung were established.

Today more than 35 large production entities are working within the Uzavtosanoat joint-stock company.

It should be said especially that in 2011 the General Motors Powertrain Uzbekistan joint venture’s work on motor production was started in cooperation with General Motors.

General Motors Powertrain Uzbekistan has the capacity to produce more than 225 thousand car engines a year. Motors being produced to Euro-5 international ecological standards are supplied to the Asaka car manufacturing plant and are also exported.

The programme for setting up the local production of finished goods, components and materials in20015-2019, approved by the presidential decree dated 11 February 2015, creates wide possibilities for enterprises of the sphere. This programme envisages the local production of more than 30 types of industrial products such as shock absorbers, speedometers, technical resin for cars, small and standard batteries, radiators, air conditioners and noise blocking materials.

The country’s car manufacturing sector had a good effect on other similar sectors in it and is of important significance to providing employment. This is clearly evident in the fact that today more than 27 thousand people work in this system.

At every house

An automobile is a means of transport and of raising the quality of life. This aspect alone can help one understand and feel that the living standards in the country have risen so much. Today in Uzbekistan 42 in every 100 families have cars.

“In the past, by house people understood a house consisting of a few rooms. Nowadays the construction of a house starts with building a parking space,” says Bahriddin Tursunov living in Bakhmal District.

Briefly speaking, the country’s car manufacturing industry, which is a vivid example of the Uzbek model of development, rapidly and steadily developed over the past 20 years and turned into a firm branch of this independent country’s industry. Today this country is among 52 countries producing cars and is among the top 30 in terms of production capacity, which shows that the international prestige of the Uzbek national auto-industry is rising. All these are actually confirmation of the ongoing realization of Uzbek people’s dream – the Uzbekistan is a Country with a Great Future idea put forward by the President in the very first days of sovereignty.

Author: UzA
Views: 9920