Construction commences on another automobile manufacturing facility in Kyrgyzstan
📣 A groundbreaking ceremony took place on February 28, marking the beginning of a mammoth project—a vehicle factory in Sokuluk, Kyrgyzstan. Funded by an impressive $115 million, this venture has ambitious plans to churn out up to 80,000 vehicles annually, as per the president's office.
The project is a tantalizing collaboration between domestic Kyrgyz companies and China's Hubei Zhuoyue Group. By August, production is expected to commence, though the exact brands that'll roll off the assembly lines remain under wraps.
The upcoming factory promises to manufacture a diverse lineup, including electric vehicles and commercial and passenger models, according to insider intel. However, the details are intentionally vague about the big-name brands that could be joining forces with Kyrgyzstan.
Intriguingly, at the event, President Sadyr Japarov emphasized that this project serves as the bedrock for bolstering the "Made in Kyrgyzstan" label.
Historically, Kyrgyzstan has functioned as an auto re-export hub. It's no secret that over 79,000 vehicles imported from China in 2023 found their way to Russia, a 44-fold increase from the year prior. If you're curious, Avtostat, a car market analytics company, shed light on the matter back in December, reporting that Kyrgyzstan had shipped 60,000 vehicles to Russia since the beginning of 2023.
Furthermore, Kyrgyzstan imported about 50,400 cars from South Korea in 2023, marking a significant jump from the 10,600 imported in 2022.
The Sokuluk plant isn't Kyrgyzstan's only automotive venture slated to kick off this year. Another car assembly plant has started construction in the village of Ak-Suu in Kyrgyzstan's northern Chui region. This joint venture between UzAuto, a Uzbek government-controlled company that manufactures vehicles under the Chevrolet brand, and Kyrgyz company DT Tekhnik, will initially have the capacity for 10,000 vehicles per year.
Initially, Ak-Suu's facility is poised to assemble cars using large pre-made sections or modules, with UzAuto factories in Uzbekistan likely providing the assembly kits.
Given the increasing pressure from Russia to reevaluate the current Kyrgyz auto re-export model, the Uzbek-Kyrgyz partnership might have a certain appeal. While Kyrgyzstan and Russia are partners in the Eurasian Economic Union, Uzbekistan maintains an outsider status, offering a workaround for tariff-free privileges when exporting components to Kyrgyzstan.
- The major project in Sokuluk will not only aim to produce 80,000 vehicles annually, but it's also anticipated to incorporate elements of news-worthy technology, such as electric vehicles and diverse commercial and passenger models.
- The announcement about the partners collaborating on the Sokuluk vehicle factory sparked curiosity, as it's yet to be revealed which big-name brands in the business sector may join forces with Kyrgyzstan, potentially contributing to the growth of the "Made in Kyrgyzstan" label.
