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News & Events
GM Uzbekistan stakes on new mini carA new A-class car has appeared in the Uzbek market as the Chevrolet Spark mini car was presented in Tashkent last week. Its producer - GM Uzbekistan – is trying to take the lead in the region's small cars market. Hatchback Chevrolet Spark is the seventh car model produced at GM Uzbekistan's plant in Asaka (Andijan region) and the second one launched after the coming of a new investor - General Motors (US), TCA reports. However, sedan Lacetti, whose production was launched two years ago, was initiated by the plant's previous owner, Daewoo Motors. Late in 2008 GM Uzbekistan and General Motors Daewoo and Technology (GM DAT) signed a contract to supply equipment for serial production of Chevrolet Sparks. It is planned to produce 50 thousand cars annually, 20 thousand of which will go for export. The 4.5 million project was financed through GM Uzbekistan's loans and own funds of Uzbek state-owned car-making company Uzavtoprom. According to Uzavtoprom, the new model will be sold in the domestic market through Uzavtoprom's dealer network and exported through General Motors' dealers. On 26 August 2010, right after its official presentation, Chevrolet Spark was offered for sale throughout Uzbekistan. Next year Uzavtoprom expects to win 10%-15% of the market in this class of cars and sell up to 20,000 such cars. The company stakes on such competitive advantages of the new model as its price (,000), attractive design, powerful engine of 1 and 1.2 liters (which is quite strong for this class), and economical fuel consumption (7 liters/100 km in urban traffic). According to Uzavtoprom experts, the growing sales of mini cars owe to several reasons: mini cars attract by their low price, their small size makes it easier to navigate through city traffic jams, it's easier to find a parking place for a small car, and its maintenance is cheaper than that of larger models. Previously, the main goal of car companies was to produce cheap and fuel-efficient models. Now mini cars are equipped like business-class sedans: air conditioning, multimedia equipment, etc. Mini cars have now turned from cars for low-income citizens and students into cars for the middle class. The number of mini cars on Uzbek roads has increased dramatically. While in 1996 about 900 A-class cars were sold in Uzbekistan, the sales exceeded 50,000 in 2009. Promotion of mini cars was started in 1996, with the start of serial production of Korean Tico, the most popular compact car in the Uzbek market over the past 15 years. Today used Ticos, whose serial production was stopped in 2001, sell for ,000-,000, which is almost 1.5 times higher than the initial price. Even Matiz, the best-selling compact car in Uzbekistan which has replaced Tico, can not boast such popularity. Fuel consumption of such cars is twice as low as that of cars with engine capacity of 1.6-2 liters. Maintenance of mini cars is 30% cheaper as well. Relatively low cost of exploitation allows using mini cars as private taxis. That is why Matiz is now the best-selling model through leasing for individual entrepreneurs. According to the Association of Lessors of Uzbekistan, in 2009 the volume of transactions with passenger vehicles increased by 15.6% to .3 million, with Matiz mini cars accounting for over 55% of this volume. Moreover, traffic in Uzbek cities has become more congested and drivers experience more difficulty with parking and driving in jams. Therefore, most mini cars sell in large cities, such as Tashkent, Samarkand and Bukhara. The only deterrent to Chevrolet Spark is that initially it will cost by 15%-20% more than Matiz. The future of the new model will also depend on successful production localization of Spark components at Uzbek enterprises. uzreport.uz 03.09.2010 09:36
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