UzAuto Motors explains why it suspended sales of Lacetti, Cobalt, Damas and Labo cars

According to them, the global crisis with semiconductors and logistics, as well as geopolitical turbulence, have led to a protracted crisis in the automotive industry around the world. Widespread shortages of microchips, disruption of supply chains, and the impact of cross-sanctions have forced many automakers to scale back production, trim packages, and even close factories.

The result of the crisis has also been a shortage of cars and an increase in waiting times around the world. The company said that buyers in Europe have to wait up to 22 months for their cars, a similar situation in South Korea, where the queues stretched up to 2 years. At the same time, global crises have significantly affected the cost of cars – only since October of this year, car brands represented in Uzbekistan have raised their price tags by an average of more than 8%.

“UzAuto Motors has managed to overcome all global crises without stopping production, and even more so with record volumes, an increase in jobs, the start of production and sales of new modern models. During this year, UzAuto Motors also brought the plants to the maximum production capacity, which is 300,000 vehicles per year. If last year the production volume amounted to 235,000 cars, this year, in the conditions of the most severe global crisis, the company has achieved an increase in production by 31%, having produced more than 310,000 cars from January to date,” the report reads.

This year, the country has seen an abnormal growth in demand for Chevrolet products, driven by the growth of the Uzbek economy and the availability of cars. According to experts, the country’s citizens consider light vehicles to be highly liquid investments. If last year the average monthly number of contracts for the purchase of Chevrolet cars was 21,000 units, then in November of this year alone, more than 76,000 contracts were concluded.

However, according to the MIA Traffic Safety Department, more than 90,000 vehicles (almost a third of the annual production volume) purchased in 2022 were resold by buyers. The growth in the number of “dealers” also confirms the analysis conducted by the Center for Economic Research, according to which the number of transactions increased by 41% compared to the previous month, and compared to last November – by 2.3 times. It is obvious that such a high proportion of “dealers” could not but affect the waiting time of ordinary buyers and created an artificial shortage in the market.

It is emphasized that the UzAuto Motors team continues to do everything possible to ensure a monthly increase in the rate of contracting. To increase production volumes, the supply of components was established, including by air, and to solve the problems of cargo transportation at the government level, the issues of prioritizing the transportation of goods by UzAuto Motors were resolved.

“These and other unprecedented measures allowed us to ensure the maximum supply of automotive components, which in turn ensured the uninterrupted operation of the plant. Negotiations with GM and a number of microchip manufacturers made it possible to provide additional supplies of semiconductors and produce more cars than was predicted in the conditions of the crisis. In addition to increasing production volumes, the company redirected part of the export volumes of cars to the domestic market,” the company said.

In addition, UzAuto reached an agreement with General Motors to increase production for 2023 to 500,000 vehicles per year, which is super-possible in the context of global crises. It is noted that such an impressive increase in production capacity requires not only time, but also large-scale investments.

“Given the abnormal growth in demand for cars in Uzbekistan, exacerbated by global challenges, the company believes it is right to follow the example of a number of other global automakers by temporarily suspending new applications for the sale of Chevrolet Lacetti, Cobalt, Damas and Labo cars, focusing on the production of already pre-ordered cars. The company hopes for the understanding of those who wish to purchase these cars, but in the current circumstances, the main priority of UzAuto Motors is the fulfillment of obligations already assumed. We are confident that with your support, the company will soon be able to stabilize the situation, and these models will again become available for purchase,” the company concludes.