Russia’s UAZ to localize assembly in Vietnam in 2017

MOSCOW, Mar 3 (PRIME) -- Russian carmaker UAZ plans to agree on localization of assembly of its cars in Vietnam in 2017 and in Egypt and Iran in 2018, Export Sales Director Andrei Dorofeyev told reporters late on Thursday.

Assembly will be launched on capacities of local companies, while UAZ will invest in adapting its cars to local conditions and preparation of logistics infrastructure to enter commercial markets of these countries, he said.

“Regarding Vietnam’s market, we are studying delivery of already made Patriots and Pickups. We have planned to test Patriots and Pickups at the Defense Ministry, and we plan to deliver at least 1,000 cars there within the existing intergovernmental agreement on a free-trade zone between Vietnam and Russia, and to start assembly there after that,” he said.

UAZ will have to launch assembly within a year if it keeps interest in sales, and now it is at a stage of coordinating an investment project with its Vietnamese partner and the industry ministry, he said.

UAZ also plans to sell Cargo and Pickup cars in Iran, but the country limits capacity of engines of these cars at 2.5 liters, while UAZ produces them with 2.7 liters, meaning it needs a separate assembly.

“We signed a distribution agreement with them for 1,000 cars after we had received an approval certificate in Iran. We will finish preparation of documents by mid-March. Assembly in Iran will allow us to cover Iraq and Afghanistan,” he said.

“We also have a distribution agreement with the Arab Republic of Egypt. But the possibility of delivering ready-made cars there is restricted by the Defense Ministry. We plan to give them two specimens of Patriot and Pickup for testing and they will be ready to study delivery for the Defense Ministry. We will only be able to enter the commercial market through assembly.

“We also plan to set up representative offices across the ocean in Latin America – it may be Cuba or Panama, in Southeast Asia – on the basis of Vietnam, and in the Middle East – likely in the Persian Gulf zone.”

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