China Xiaou Group to invest $1.5bn to establish car manufacturing plant in Fergana, Uzbekistan

China Xiaou Group to invest $1.5bn to establish car manufacturing plant in Fergana, Uzbekistan
Plans have been unveiled for a new car manufacturing plant in Fergana. / Fergana region local government.
By Mokhi Sultanova in Tashkent June 20, 2024

China Xiaou Group has announced plans to establish a car manufacturing plant in Uzbekistan's Fergana region.

The decision follows negotiations between officials and entrepreneurs from Fergana and China Xiaou Group's management during a recent visit paid to China. 

Huang He, the company's head, disclosed the $1.5bn investment plan that will be rolled out over the next five years for the project.

The initial phase, starting with a $50mn investment, will focus on establishing auto assembly lines capable of producing up to 60,000 vehicles annually, including models featuring gas, electric and hybrid engines.

The following phases will see further enhancements in production capacity and local component sourcing. 

The second phase, estimated at $350mn, will prioritise expanding local component manufacturing. 

The final phase, requiring an investment of $1.1bn, aims to increase annual production to 110,000 vehicles, inspired by the capabilities of the BAIC Bluepark Magna plant in Zhenjiang, which the Uzbek delegation visited.

The decision to establish a manufacturing facility in Fergana stressed China Xiaou Group's commitment to leveraging local resources and expertise to meet growing regional demand. 

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