BUSINESS | 15:11 / 19.06.2024
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Chinese company to start car production in Fergana

The regional administration of Fergana signed a $1.5 billion agreement with Chinese company China Xiaou Group.

Photo: Fergana regional administration

During a delegation's visit to China led by Fergana regional governor Khayrullo Bozorov, which included officials and business leaders from the region, an agreement was reached with China Xiaou Group to establish a large-scale automotive complex in the territory of the Fergana region. The project will be carried out in three phases, completely financed by direct Chinese investment totaling $1.5 billion, as reported by the governor's press service.

In negotiations with China Xiaou Group's leader Huang He, it was determined that the initial phase of the project would involve a $50 million investment to establish assembly, painting, and tuning lines, aiming to produce 60,000 gas, electric, and hybrid vehicles, along with specialized transportation vehicles each year.

In the second phase, an investment of $350 million dollars and in the third phase, $1.1 billion will be allocated to increase the localization of the component parts and to escalate the production capacity to 110,000 vehicles per year. The project is projected to be fully completed within five years.

The Fergana regional delegation also visited the BAIC Bluepark Magna Automobile factory based in Zhengzhou, a partner enterprise of China Xiaou Group, where they acquainted themselves with processes involved in manufacturing electric vehicles. This specialized enterprise, focusing on research and development of new vehicle models, produces over 150,000 electric vehicles annually, featuring mainly the Arcfox brand, as well as BJEV and models involving Huawei's technologies, such as the Stelato.

China Xiaou Group leader Huang He presented the technological processes planned to be implemented within our region as part of the forthcoming investment project using the BAIC Bluepark Magna Automobile enterprise as an example.

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