Can Central Asia be transformed into an automotive hub?
By Ian Henry2019-08-14T11:32:00
Two of the largest former soviet republics, Uzbekistan and Kazakhstan, have set their sights on growing an automotive sector as they industrialise and modernise their economies. These Cental Asian nations are now focusing on strengthening their supply bases to boost local production.
In growing their automotive sector, Uzbekistan and Kazakhstan will, like most other emerging markets, be reliant on Korean and Chinese investors in particular because American and European players have largely stayed away, as have the Japanese. Russian players are also expected to play a role, although on a much smaller scale than their Asian counterparts.
At present, imported technology and vehicle platforms rather than domestically developed models and brands are the core of vehicle production in these countries. Furthermore, until recently this has focused mainly on older or simpler models than those made by the companies supplying the technology. This situation has begun to change, though, with more local production of vehicles and attempts to increase the supply base for components – and also some foreign investment in EVs.