President Mirziyoyev Reviews Plans to Further Develop Uzbekistan’s Automotive Industry

Tashkent, The Gulf Observer: President Shavkat Mirziyoyev has reviewed proposals aimed at further developing Uzbekistan’s automotive industry, expanding production capacity, and strengthening the sector’s overall competitiveness.

During the presentation, it was emphasized that special attention to the automotive industry is justified due to its key role in generating high value-added production, strengthening industrial cooperation, creating thousands of jobs, and expanding export opportunities.

In recent years, the automotive sector in Uzbekistan has entered a new phase focused on competition and consumer demand. The market, once dominated by a single manufacturer and long waiting lists, has significantly transformed, with five automobile plants now operating in partnership with global brands such as Chevrolet, BYD, KIA and Hyundai.

Officials noted that consumers are now directly benefiting from increased competition, with a wider range of vehicles available and the elimination of long queues. Currently, 20 banks are involved in financing car purchases, with around 95 percent of vehicles sold through installment plans and accessible credit schemes.

The development of the sector has also contributed to growing production of vehicles and components for neighboring markets, alongside the formation of new industrial cooperation chains. More than 10,000 young specialists are now employed using modern technologies, while over 300 enterprises supply components for Chevrolet and around 40 enterprises supply parts for KIA and BYD.

Progress toward the target of reaching one million units in combined production and employment within the automotive industry was also reviewed during the meeting.

Authorities noted that the increasing number of investment proposals in passenger and commercial vehicle production reflects a favorable investment climate and a growing domestic market. However, it was stressed that each project must be carefully assessed for market demand and economic efficiency, with priority given to international competitiveness.

The presentation also included updates on the Volkswagen vehicle production project. The first phase is expected to launch large-scale assembly operations in Tashkent, followed by the establishment of a full production cycle in the Angren Free Economic Zone, increased localization, and expansion into foreign markets.

Officials highlighted that global economic conditions are significantly influencing the automotive industry. In this context, emphasis was placed on achieving technological independence, promoting innovation, and developing a competitive national product less dependent on external supply and logistics constraints.

It was noted that modern engineering schools have been established in Andijan and Jizzakh, contributing to the development of a new generation of engineers and researchers and strengthening the country’s intellectual base for future industry growth.

To further support this process, expansion of research and development activities across the Uzavtosanoat system has been approved.

The automotive components market was identified as a key area of opportunity, with instructions issued to regulate the sector, increase locally produced content, improve certification systems, and establish modern testing laboratories.

By the end of 2026, a strategy for the automotive spare parts market is expected to be developed in cooperation with international consulting companies.

President Mirziyoyev stressed that the automotive industry remains a strategic sector of the national economy and issued directives to enhance competition, deepen localization, and further develop a national engineering school within the industry.