Azernews.Az

By Sara Israfilbayova

The enterprises of the automobile industry in Uzbekistan in 2017 earned 130.3 billion soums ($16.5 million) of net profit.

Uzavtosanoat reported that 6.5 billion soums ($822,000) are directed to the formation of a reserve fund and a fund for sponsorship and charity, 117.3 billion soums ($14.83 million) the company directs to increase the statutory fund.

In Uzbekistan, with a population of more than 32 million people, there is a huge potential for further development of industrial production and growth of the automobile market.

To meet the needs of the population, it is necessary to increase production volumes to 220,000-230,000 cars per year.

In 2016 the net profit of the enterprises of the Uzbek car industry amounted to 30.7 billion soums ($3.88 million). Half of the earned profit - over 15.3 billion soums ($1.9 million) was directed to payment of dividends on the state share.

Car industry occupies one of the leading places in the economy of Uzbekistan. A significant number of the country’s population is employed in this sector of industry.

The vast majority of automotive enterprises in Uzbekistan are joint ventures with foreign partners. This shows that the country is successfully working to create a favorable investment climate.

The main production companies are GM Uzbekistan, SamAvto, JV MAN Auto-Uzbekistan and GM Powertrain Uzbekistan.

The automotive industry has undergone significant reform last year. Simplification of the procedure for buying cars is intended to increase the demand for them, and the expansion of export opportunities will make this Uzbek brand even more popular abroad.

Since 1998 Uzbekistan has been a member of the International Organization of Motor Vehicle Manufacturers (OICA).

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Sara Israfilbayova is AzerNews’ staff journalist, follow her on Twitter: @Sara_999Is

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