The Russian company AvtoVAZ is expanding its operations in Central Asia. This was reported by Upl.uz.
Together with a local partner, the Central Asia Capital investment fund, they announced the establishment of a national car factory under the Muras brand in Kyrgyzstan. This project will be implemented with an investment portfolio of 30 million dollars and contrasts with the uncertain state of manufacturing activities in other countries of the region.
According to the press service of Central Asia Capital, the new enterprise is a strategic initiative of the fund, with AvtoVAZ participating as a technological partner. The project’s financing will be carried out from the fund’s own assets as well as funds raised through bond issuance.
The project roadmap covers a decade and is divided into three phases. In the first phase, from 2026 to 2030, large-scale assembly will be produced, with an annual capacity reaching 1,500 cars.
In the second phase, from 2031 to 2035, a transition to medium-scale assembly is planned, which will increase the number of models produced and ensure an annual output of up to 5,000 vehicles. After 2035, a full production cycle is planned, aiming to produce more than 7,000 cars annually.
The Muras factory will manufacture well-known market models such as Granta, Vesta, Largus, Niva, as well as the new Iskra models. Additionally, special vehicles for commercial, social, and medical needs are planned to be produced.
The starting price of the cars is set at around 10,400 dollars, but within the first three years, this price may decrease by up to 15 percent. This opportunity will be realized through Russia’s tax incentives, allocation of land plots, and the implementation of leasing programs.
The project is expected to have a significant impact on Kyrgyzstan’s economy. By 2035, it will contribute to a 1 percent growth in the country’s gross domestic product, create 12,000 jobs, and generate tax revenues of 500 million soms (5.72 million dollars) annually.
Moreover, dependence on car imports will decrease. Starting from 2031, the factory plans to export up to 3,000 cars annually to Central Asian and Balkan countries.
Despite concrete agreements in Kyrgyzstan, AvtoVAZ’s projects in Uzbekistan are not yet finalized. The head of the Russian car manufacturer, Maxim Sokolov, stated in April that they are ready to start car assembly in the republic, possibly under a local brand.
The Lada Largus is being considered as the initial model for this project. There is previous experience of cooperation.
In October 2021, large-scale assembly of Lada cars began at the ADM plant in Jizzakh, where Vesta, Largus, and XRay models were produced for the domestic market. However, in September 2023, the US Treasury included AvtoVAZ on the sanctions list, complicating operations.
Nevertheless, efforts to resume activities continue. AvtoVAZ’s export director, Ilya Savinov, said last spring that negotiations with local partners were underway and localization plans were being developed.
According to statistics agency data from July 2024, production was briefly resumed and six cars rolled off the assembly line, but production stopped again starting in August. In September 2023, Maxim Sokolov confirmed that projects in Uzbekistan were progressing slowly, despite discussions at the highest political levels.
Therefore, while a new national car brand is being launched in Kyrgyzstan, the resumption of Lada production in Uzbekistan remains uncertain. The Lada name was originally given only to “Zhiguli” cars intended for export.
This name was chosen to sound pleasant to foreign buyers. It is Slavic
