Volkswagen to Begin Vehicle Assembly in Uzbekistan

Tashkent, Uzbekistan (UzDaily.com) — President of Uzbekistan Shavkat Mirziyoyev reviewed proposals aimed at further developing the country’s automotive industry, expanding production capacity, and increasing the sector’s competitiveness in domestic and international markets.

During the discussion, officials noted that the automotive industry plays a strategic role in the economy by generating added value, stimulating industrial cooperation, creating jobs, and expanding export potential. It was emphasized that in recent years the sector has entered a new stage of development focused on competition and consumer demand.

It was reported that while the market was previously associated with a limited number of manufacturers and shortages, Uzbekistan now has five automobile plants operating in partnership with international brands, including Chevrolet, BYD, Kia, and Hyundai. Additional production facilities involving Volkswagen, Foton, and JAC are expected to be launched this year.

Officials noted that these changes have already affected the consumer market, expanding vehicle choice and eliminating waiting lists. Twenty banks are involved in vehicle sales, with around 95% of cars purchased through installment and credit programs.

The presentation also addressed the development of supply chains and the growth of local component manufacturing. According to the data presented, more than 300 enterprises supply components for Chevrolet, around 40 companies work with Kia and BYD, and the sector employs more than 10,000 young specialists.

Special attention was given to the goal of increasing automotive production and employment to a level equivalent to one million units. Officials stressed that growing investment proposals reflect an improving investment climate, while noting that each project must be assessed in terms of market demand and economic efficiency.

A Volkswagen production project was also reviewed. The first stage involves large-scale assembly in Tashkent, followed by a transition to full-cycle production in the Angren Free Economic Zone, with increased localization and export orientation.

It was further noted that global economic and logistical changes are increasing the need for technological independence in the sector and the development of national engineering capabilities. In this context, modern engineering schools are already operating in Andijan and Jizzakh, training a new generation of specialists.

A decision was made to expand research and development activities within Uzavtosanoat. Authorities also highlighted the need to streamline the auto parts market, increase the share of local production, improve certification processes, and establish testing laboratories.

The president underscored the strategic importance of the automotive industry and issued instructions to strengthen competition, deepen localization, and further develop the national engineering school in the sector.