“We did not increase the price, in fact we lowered it” – An interview with UzAuto official 

BUSINESS 09:30 / 17.11.2022 17157

In an interview with Kun.uz, the deputy head of Uzavtosanoat trade development and marketing department, Bekhzod Khalikov, answered questions about Onix being sold at a higher price than the previously announced prices, long queues, and whether there is a plan to produce budget cars in the future.

- What factors influence the occurrence of long queues?

- Queues will disappear soon. During these months, system has been frozen, that’s why some people had a chance of concluding 2-3 contracts. Due to this, the delivery period was extended to July, August, September. For example, if one person paid for 3 cars, automatically two will be cancelled. In this regard, the car delivery time will be reduced to 2-3 months.

In addition, we expect the arrival of components to increase from the first quarter of next year. Due to this, our production will speed up. I think the wait times will be shorter soon.

- Why Chevrolet Onix, which was said to be sold around 9-12 thousand dollars, was put on sale at much higher prices?

- The prices were announced last year. Such were the plans at the time. A lot has changed because of the current geopolitical situation. Components are shipped from different parts of the world. In particular, the routes that should come through Russia have also changed. According to our calculations, logistics costs have increased by 385% or almost 4 times.

A fire also broke out at a microchip manufacturing plant in Taiwan. This factory supplied 20% of chips worldwide. Restoration work is currently underway. So, there are many such problems. Prices are inflated. Due to this, we are forced to sell Onix at a higher price than the previously mentioned prices.

- Does Uzavtosanoat plan to produce budget cars in the near future?

- Of course. We’ve seen with Onix that it’s a mistake to announce prices in advance. But we have not always stopped planning the production of budget cars. Onix itself should have been like that. God willing, we will try to start production of new budget models every year until next year or 2024-2025.

We have plans, though not yet publicly announced. We care about our customers. A budget car is a must have.

However, I must emphasize one thing, production of budget cars is probably only in Uzbekistan. I mean new cars. If you explore abroad, the same cars are almost twice as expensive.

- What models of cars are twice as expensive in foreign countries compared to Uzbekistan? We released information about the price of Malibu-2 in Korea, it is sold for around 21-22 thousand dollars.

Kia Picanto

- This is the wrong price. We also commented on this. The price shown on the site is a marketing trick: the payments that the buyer pays when buying a car are not taken into account. On the site, it is indicated as 22 thousand dollars, but if you start shopping, it will become 33-35 thousand. We have studied and answered this.

Let’s say the Spark has a competitor, the Kia Picanto. It is probably sold in African countries for around 18-20 thousand dollars. See how much Spark is in Uzbekistan and prices abroad. Onix is also more expensive in Brazil, the package is lower than here.

Think for yourself, how many years have we not increased the price. Calculate the dollar rate, try doing the math. You know we didn’t raise the price, we actually lowered it.

- Are the cars produced by UzAuto Motors not covering their cost? The company said in a statement that the revenue from the sale of expensive cars will be used to partially cover the production costs of cheaper models.

- True. Because they are sold at almost the same price. Once it’s a budget car, the price shouldn’t go up so people can afford to drive more basic cars, right?

We know that the equipment is not added, it is an old car – it needs to be updated. In 1-2 years, we will also remove Lacetti from the assembly line, because these are starting to wear out. It is outdated. It is being replaced by Onix and Tracker. 

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On this day, Bekhzod Khalikov also talked with disgruntled customers who gathered at the Uzavtosanoat building. Even though the period specified in the contract has already expired, buyers who could not get their cars, were disappointed by the length of queues and became victims of the company’s “marketing trick”, went to the UzAuto office and demanded an explanation from the company’s officials.

“I also have objections to the UzAuto Motors company. 5 months ago, I made a payment to buy a car. This period has passed. But they still don’t deliver the car. I am ready to make the remaining payment. They put forward their demands and extend the period of getting a car for another 3 months. They could not give me a clear explanation. According to the contract, I should have received it in 5 months, the period has expired,” one of the consumers said.

Another buyer emphasized that it is surprising that a company that has been working for 27 years takes money in advance and claims to deliver a car after 13 months.

“We concluded a contract and made the payment. At the showroom, they said that the car will be delivered after 13 months. We are saddened by this.

This factory has been running for 27 years, but you have to pay off the car and wait for another 13 months. We are all wondering. I am appealing on behalf of citizens. Please don’t be silent. Write to the Agency for Protecting Consumer Rights and the Society for Protecting Human Rights, to the Prosecutor’s Office. If you sit quietly, there will be no change,” he said.

At the beginning of summer, UzAuto Motors posted information on its official page “specifically stating” that the Nexia car will be available in the next few days, and the Cobalt car – next month (this message has now been deleted).

A customer who fell victim to the company’s “marketing trick” signs a contract to buy a Cobalt, but the car has not been delivered to him for 5 months.

The customer accused the company of spreading fake news. The representative of the press service denied this, claiming that the company did not commit to specific delivery in its announcement, it was only written that “it could be delivered”.

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