2024-02-14 01:04:46
The Chevrolet Tracker crossover costs in Uzbekistan from 218 million soums, or regarding 1.6 million rubles. The same amount is asked in Russia for the minimum Lada Vesta that can be bought in reality. But Chevrolet has models half the price in its arsenal
Source: Uzautomotors.com
While AVTOVAZ is recovering from the departure of Renault, a new leader in production volumes has appeared in the CIS, looking at which you can’t help but think: this is roughly how our AVTOVAZ would have developed if it weren’t for sanctions and everything else. We are talking regarding the Uzbek UzAuto Motors, the same one that once produced the popular Daewoo Nexia, and now they make a wide line of Chevrolets of different generations, including new ones. The plant no longer belongs to GM, it has been nationalized, and at the helm is Bo Andersson, the former president of AVTOVAZ and the GAZ group, probably the most successful top manager of the post-Soviet auto industry. We talked with Alexey Agureev, an industrial communications expert who worked as an adviser to Bo Andersson at both AVTOVAZ and UzAuto Motors. He compared the position of the two factories, their productivity, and also answered the most curious question: will we see Uzbek Chevrolets in Russia?
Chevrolet Onix is a classmate of Lada Vesta. In Uzbekistan it is produced with a 1.2-liter engine, which produces 90 hp in the naturally aspirated version. s., in the turbo version – 132 liters. With. The cost starts from 177 million soums (1.3 million rubles). The version with a turbo engine and automatic costs regarding 1.5 million rubles
Source: Uzautomotors.com
In general, the car market of Uzbekistan has been swelling by leaps and bounds in recent years: in 2023, following another jump, it has grown to 452 thousand cars. This is approximately half the Russian indicators, but the population of Uzbekistan is four times smaller than in the Russian Federation. That is, in specific figures, the demand for cars in Uzbekistan is the same as in the best years of the Russian car market. The locomotive of this process is Chevrolet cars with a market share of as much as 82%. The seven most popular models in Uzbekistan are, naturally, Chevrolet, with the age-old Damas microvan in first place, followed by the aging Cobalt and Lacetti. But then there are two new models, Tracker and Onix, which were launched under Bo Andersson. And it’s absolutely amazing that Uzbekistan has become Chevrolet’s second market (following its native USA), surpassing both China and Brazil in sales volumes.
Boo Andersson (pictured right) is probably the most successful top manager in the post-Soviet auto industry
Source: Uzautomotors.com
Who is Boo Andersson? A Swede by nationality, he has two educations – military and management. He began his career in the automotive industry at Saab, which at that time belonged to General Motors, and in the mid-1990s he moved to the main concern, being responsible for the procurement of components. At GM, Bo Andersson was remembered as a tough manager with high discipline, so when the Swede headed the GAZ group in 2009, there was a lot of concern regarding his working methods. But Bo Andersson showed himself well as a group leader, and in 2013 he headed AVTOVAZ, whose main project at that time was the launch of Lada Vesta. Bo Andersson changed many of AVTOVAZ’s approaches, starting with the appearance of the toilets, and two years later amazed many by meeting the Lada Vesta launch deadline to the day. It was under him that the Lada XRAY was launched. However, the Renault concern, which owned AVTOVAZ, saw its own man as the head of the enterprise, so in 2016 Bo Andersson left his post. For several years he worked for the manufacturer of wiring and electrical components Yazaki, and since 2021 he heads UzAuto Motors. Under his leadership, two new Chevrolet models, Tracker and Onix, were launched on time, and sales increased significantly.
When asked to draw parallels between the two enterprises, Alexey Agureev replies that it is generally wrong to contrast them, because the history, development strategy and, most importantly, the conditions are very different. But if we adhere to the simplified “score on the scoreboard” principle, then in the last two years the advantage has been on the side of Uzbekistan.
“In 2023, the Russian company produced a little more than 374 thousand cars, the Uzbek company – a little more than 395 thousand,” says Alexey Agureev. — Thus, for the second year in a row, UzAuto Motors is a leader in production volumes not only among the countries of Central Asia, but also among the CIS countries: this is data from the Promrating agency.
Chevrolet Damas is the leader of the Uzbek car market. The minibus, less than 3.5 meters long, was designed back in the 1980s by Suzuki and sold under the name Every (Carry), but in the 90s it became first the Daewoo Damas and then the Chevrolet Damas. It has been collected in Uzbekistan since 2014. The price starts from 93 million soums – that’s 688 thousand rubles
Source: Uzautomotors.com
The main volume of production goes to the domestic market of Uzbekistan – almost 370 thousand cars. The rest is exported, and the main foreign market is Kazakhstan. As for the parallels with AVTOVAZ, Alexey Agureev emphasizes that he is proud of his work at the Togliatti plant, and always sharply opposes the criticism that falls on the company today:
— It’s easy to be smart “on the Internet,” but try to do something yourself. Moreover, the problems that AVTOVAZ is now facing are perhaps more complex than the obstacles that had to be overcome in 2014–2016. Soon it will be two years since AVTOVAZ lives and works under sanctions. This coincided with the global microchip crisis and the breakdown of supply chains in the world, that is, everyone faced difficulties. But Togliatti objectively found itself in probably the most difficult situation among all automakers due to the complete departure of foreign suppliers.
The 4 millionth car was assembled at the Uzbek plant in 2022. It was the then new Chevrolet Tracker: a crossover close in size to the Hyundai Creta
Source: Uzautomotors.com
At the same time, Alexey believes that in no case is anything lost for AVTOVAZ and work in the current conditions demonstrates the plant’s potential:
“At one time, we liked to remember, appropriately and inappropriately, that the Chinese character denoting the concept of “crisis” can also mean “opportunity,” continues Alexey. — In my opinion, the Russian plant, due to the departure of foreigners, really got the opportunity to start everything from scratch, find the right suppliers of parts and auto components and competently build relationships with them. After all, it was initially clear that it was impossible to achieve production records under sanctions in 2022 and we needed to work for the future. And, judging by the results of 2023, the management of AVTOVAZ very wisely took advantage of the opportunity presented. That’s why the company produced 374,077 cars last year, almost double what it produced in 2022. This figure has become a record for the Lada brand over the past 10 years.
In Uzbekistan, Chevrolet cars are produced in a full cycle: stamping of body parts, welding, painting, assembly, engine production… For example, Renault and Volkswagen worked in Russia according to this scheme
Source: Uzautomotors.com
As for UzAuto Motors, last year it increased production by 20% and does not intend to stop: the plan for 2024 is 430 thousand cars (+9%).
— Tolyatti residents now have to go through trial and error, not only to saturate the market, but also to make a strategic foundation for the future, and the performance of UzAuto Motors is the result of many years of work, a thoughtful approach and the right government policy in the automotive industry. And, of course, the result of well-made investments,” explains Alexey Agureev. — Of course, sanctions once morest AVTOVAZ to a certain extent helped the Uzbek automaker become a leader in terms of production volume in the CIS countries. But if this path had not been started 30 years ago, if Uzbekistan had not consistently and adamantly developed its own car production, then even under the conditions of sanctions, AVTOVAZ would have calmly retained its leadership. There would simply be no one to compete with.
Chevrolet Cobalt was originally created for the Brazilian market and came to Russia twice: in 2011 and 2020. It did not gain particular success, but in Uzbekistan it is in second place in sales. The price starts from 124 million soums, that is, from 918 thousand rubles
Source: Artem Krasnov
Alexey Agureev says that the Uzbek enterprise was initially focused on supporting a strategic partner. At first it was the Korean company Daewoo, which was replaced by the General Motors concern. But in 2018, the Americans withdrew from the capital of the enterprise, and it became a completely national company.
“But this did not lead to a break in relations with the Americans: on the contrary, a new phase of cooperation has begun in the UzAuto Motors and GM alliance, perhaps more intense than ever before,” says Alexey Agureev. “It was thanks to the association with GM that several years ago the Uzbek company began the transition to the modern GM GEM aggregate platform. Currently, UzAuto Motors is conducting mass industrial production of two popular models on this basis – Chevrolet Tracker (crossover) and Chevrolet Onix (sedan).
One of the stages of preparing a Chevrolet body for painting
Source: Uzautomotors.com
Alexey emphasizes that one of the keys to success was establishing work with suppliers of automotive components and organizing joint production in Uzbekistan, as a result of which the actual level of localization reached 70%. This recipe was also used by the Russian auto industry, but following the departure of Western manufacturers, the industry rolled back a quarter of a century and is now actually starting all over once more. In Uzbekistan, Chevrolet production is developing consistently: cars are made in a full cycle with stamping, welding and painting of bodies, as well as complete assembly of the car.
“Many people believe that all the parts come from abroad, they say, engines cannot be produced in Uzbekistan,” continues Alexey Agureev. — Specifically, the engines are produced in Tashkent at the UzAuto Motors PowerTrain subsidiary.
Engines are assembled in Uzbekistan, which allows for a high level of localization
Source: Uzautomotors.com
The supply of Chevrolet cars to Russia, in theory, might be of interest to both parties, but Alexey says that the issue now is not of an economic, but of a political nature. That is, it is not being considered yet.
From the editors, we would like to add that General Motors was among the first automobile companies to join the sanctions. Back in 2015, he abandoned Russian production, leaving the plant in St. Petersburg, where Chevrolet Cruze and Opel Astra were assembled. In 2022, he was also one of the first to announce a complete curtailment of sales in Russia. Until the political situation changes, Chevrolet deliveries to Russia are unlikely.
Chevrolet Onix, like Tracker, is built on the global GM GEM platform. In Russia, the sedan might become an alternative to the Lada Vesta and Hyundai Solaris, but given the duties and other restrictions there is little chance of this
Source: Uzautomotors.com
In principle, an Uzbek-assembled Chevrolet can be imported from Kazakhstan, but the problem is the price. Uzbekistan is not part of the EAEU, so you will have to undergo full customs clearance. For example, a Chevrolet Onix costs from 177 million soums (1.3 million rubles), to which you need to add around 640 thousand customs duties and delivery costs – and this is if you are bringing it for yourself. On resale, fees will increase by another 300 thousand; in general, even the basic Onix will be no cheaper than better equipped Chinese sedans like the Geely Emgrand or Omoda S5. But if customs barriers are removed, Uzbek Chevrolet will become a dangerous rival for AVTOVAZ. And that is why the barriers will not be removed.
Uzbek Chevrolet Onix Chinese sedan of the same class Top Lada Vesta I passed. The price is inadequate
Previously, Alexey Agureev talked regarding working with Bo Andersson at AVTOVAZ, where he was nicknamed Boris Ivanovich.
In St. Petersburg, at the former Nissan plant, they began to produce Xcite cars, and the role of AVTOVAZ in this project is very vague (at one time the St. Petersburg plant was placed under the patronage of AVTOVAZ). And at the Peugeot and Citroen plant near Kaluga they resumed production of cars of the same French brands. And the most unusual Russian car of 2024 will probably be the Atom.
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