Mercedes-Benz Central Asia was founded by Germany’s Daimler AG and Uzavtoprom joint stock company for production of buses under Mercedes-Benz brand in Uzbekistan.

The company was also exempted from mandatory payments to National Road Fund and customs payments for goods, imported for own production of buses and their post-sales servicing.

Uzbek President ordered the Government to adopt resolution, which envisages implementation of measures on organization of bus production at unused premises of Tashkent Aircraft Production Plant named after Chkalov (TAPOiCh).

Mercedes-Benz Central Asia JV was founded in May 2010. The Daimler subsidiary Mercedes-Benz Buses Central Asia GmbH will own a majority stake (51 percent) in the new joint venture. The remaining 49 percent of the new firm will be owned by the automotive holding company Uzavtosanoat. The company has US$8 million of equity capital.

In line with the project, Uzavtosanoat will provide the factory buildings. Daimler Buses will deliver the Mercedes-Benz chassis, while the bodies will be built in collaboration with Mercedes-Benz’ long-standing body-building partner, Manufacturing Commercial Vehicles (MCV).

The production capacities being created allow a minimum of 600 buses annually under full-scale production, with the possibility to gradually increase the volumes. The first batch of vehicles is to be delivered as early as September. The products manufactured in Uzbekistan will include luxury coaches as well as intercity buses and low-entry city buses and midibuses, which will be sold under the “Mercedes-Benz” brand. All buses fulfill the Euro 3 emission standard which has been effective in Uzbekistan since January 2010.

It is envisaged that the Joint Venture will use advanced production technologies and will also localize automotive parts and components. The parties of the joint venture will also assist the JV in establishing its sales and after-sales network. In order to support export, it is planned to use the existing dealer networks of both Uzavtosanoat and Daimler in neighboring countries.

To date, Daimler Buses has sold around 1,000 buses to customers in the Uzbek capital Tashkent. All the city buses over eight tons GVW sold over the past years were Mercedes-Benz Conecto vehicles, giving the star brand a 100-percent share of the market for city buses longer than 12 meters.