UzAuto Motors to complete negotiations on car production in Russia by year end

UzAuto Motors is considering the possibility of assembling cars in Russia. According to Alexander Sakhapov, Managing Director of the company, negotiations are in the “active stage”, their results will be announced before the end of the year, Kommersant writes.

Currently, Derways plant, located in Ckerkessk, is being considered as a potential site. The option of buying the GM plant in St. Petersburg is also being studied.

According to Vladimir Bespalov from VTB Capital, the organization of local production makes sense if there is a goal to reach 50 thousand units of cars or more a year. The prospects for the assembly organization depend, among other things, on the benefits that local authorities are ready to offer the plant.

Organization of production with sales of 30 thousand cars per year in the current conditions is realistic, Oleg Moseev, the head of the Association “Russian Automobile Dealers”, believes.