Automotive Industry

A Step Towards a New Technological Advancement

5-6/2023

 
     An international consulting company BCG (Boston Consulting Group) predicted that 79 million cars will be produced worldwide by 2022, and this number will reach 83 million by 2023. A study by consultancy LMC Automotive showed that the global car market grew by 10.1 per cent in the first half of 2023. In particular, the automotive industry worldwide, which saw some decline during the global pandemic, is back in a phase of intense development.
     The automotive industry, which has embraced the progress of science and technology, occupies an increasingly significant place in the economy of our country, although only more than a quarter of a century has passed since the founding of this industry in Uzbekistan. The fact that our country has been gaining its position in the global automotive market in a historically short period of time deserves special recognition. According to UzAuto, the growth of the industry’s export potential over the past five years has allowed Uzbekistan to increase foreign exchange earnings almost 9 times from $58.7 million in 2018, with the annual volume reaching $554 million in 2022.
     The implementation of measures initiated by the President of the Republic of Uzbekistan to improve the scientific and technical potential of the industry, train personnel, strengthen international cooperation in this area, and accelerate the inflow of foreign investment opens the way to the recognition of the Uzbek automotive industry at the global level. Thus, according to Harvard University’s Index of Economic Complexity, among the 50 high-value goods recommended for the future development of Uzbekistan’s economic sectors, the area with the largest market is the automotive industry.
     7-8 years ago, the Uzbek automobile industry was understood as the Asaka Automobile Plant, founded in the first years of independence, and our perception was limited to the brands of cars produced at this plant. Today, it is a fact that automobile industry is one of the main branches of economy in many regions of our republic. In particular, Jizzakh, whose economy once depended only on cotton cultivation, is now becoming, in the words of the Head of our state, “one of the leaders of modern industry”.
     Due to dozens of major projects implemented in recent years in this area, expensive products of world-famous and reliable brands are produced in Jizzakh.
 
     “ADM Jizzakh” is a major automotive cluster
 
     Particularly, in 2021, the automobile plant ADM Jizzak officially started operating in the free economic zone “Jizzak”.
     A promising project consisting of several stages is being implemented, which will literally turn this plant, which occupies an area of almost 100 hectares, into a center for the production of automotive products.
     The first stage – the assembly of cars using the SKD method, i.e., large-unit production – began in 2020 and was successfully launched in March 2021. Since then, as of November 2023, more than 33,000 vehicles of over 10 models under brands such as Kia, Chery and Haval have been produced. At the same time, more than 1,200 young workers and specialists from Jizzakр, Syrdarya and Samarkand regions were provided with jobs, of which more than 100 were women.
     At present, the plant has fully moved to the stage of mastering production processes and localization of auto parts, i.e. the company continues to work on establishing full-fledged production, which consists of welding bodies, painting, assembling and final testing of cars, as well as mastering large-unit assembly techniques. The final production capacity will be 100,000 vehicles per year by 2024.
     According to the project, the ADM Jizzakh plant will attract more than $310 million of investment in the second phase. Due to the commissioning of this capacity and mastering of major components, the level of localization of cars will reach 30 per cent. On the other hand, the car manufacturing sequence includes all the major processes and steps from steel casting to the finished car.
     – It is permissible to mention here important information about “ADM Jizzakh”, – says Daniyar Davletiyarov, General Director of the plant, – the plant is the first large-scale production enterprise built at the expense of private capital in our country. Its design capacity is equivalent to the production of more than 160,000 cars per year, which makes it the number one carmaker in attracting customers. The dealership network is the second most extensive in the country. This includes 20 dealerships and service centers across the country. Once all the projects are up and running, 3,000 people will get permanent jobs. This will make our plant the largest employer in the region. The product range is also wide. Production ranges from passenger cars to commercial vehicles and trailers.
     In the third stage, the ADM Jizzakh plant is working on expanding production and scientific research into the possibilities of running cars on new energy sources.
 
 
Darina SULTAN, “EBU” magazine correspondent
 
 
You can read the whole article in the printed version of the magazine.

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