Ukraine Restricts Imports of Uzbek Daewoo cars

VIENNA – The Ukrainian government imposes a drastic quota on imports of Daewoo cars produced by the General Motors Uzbekistan joint venture.

A decree issued by the Ukrainian Cabinet of Ministers restricts Uzbek Daewoo imports to three units a year. The measure took effect in November and is valid until Nov. 15, 2014.

Daewoo Nexia target of Ukrainian import limit.

The import quota on Daewoo cars built at the GM-Uzbek JV in Asaka, Uzbekistan, is the Ukrainian answer to Uzbek car-import restrictions.

The Uzbek Daewoo brand sold 5,698 units through October for a 3.26% market share and the No.13 sales position in Ukraine. That figure includes 3,515 Daewoo Matiz minicars, 2,175 Nexia sedans and eight Lacetti sedans.

Because the quota concerns completely built-up imports, sales of locally assembled Uzbek Daewoo cars may continue. Dealers are believed to have a 2- to 3-month supply.

Importer Ukr-UzAvto declines to comment on either on the consequences of the Ukrainian measure or the future of the dealership network.