The PSA Group, in association with SC Uzavtosanoat of Uzbekistan, is to set up a joint venture for production of light commercial vehicles.

The JV – Uzbekistan PCA – will build a production plant in the free industrial zone of Jizzakh, located 200km from Tashkent, in Uzbekistan, to produce Peugeot and Citroën LCVs, for passenger and freight carriage. The production capacity is estimated up to 16 000 vehicles per year, to be sold in Uzbekistan and exported to foreign countries.

The charter capital of the new JV will be around 30 million euro (Rs 229 crore), with equal shareholding. Global investments represent around 130 million euros.

The PSA Group will provide new technologies, intellectual property, and facilitate implementation of modern production processes and training to employees. The plant will operate in accordance with the Group modern systems in production, quality, purchasing, supply and sales. Fifty percent of parts localisation is targeted in the first year of production, by attracting domestic component parts manufacturers – 30 large factories owned by SC Uzavtosanoat and more than 160 small and medium enterprises.

With a population over 32 million, there is considerable potential for development of industrial production and growth of the automotive market in Uzbekistan.

“This LCV1 segment was the only non-occupied vehicle segment in Uzbekistan,” said Yusupov Rustam, deputy chairman of the board of SC Uzavtosanoat. “So this project is a significant qualitative leap in the development of the domestic automotive industry. Along with the increase of employment, this joint venture will positively contribute to the profitable growth of the Uzbekistan automotive industry”.

Christophe Bergerand, Eurasia vice-president for Groupe PSA, said:  “This project is fully in line with our ‘Push to Pass’ plan and this is a great opportunity for Groupe PSA to develop our LCV business and profitable growth plan in the region.”