President Shavkat Mirziyoyev was briefed on the progress of the Volkswagen automotive production project Tuesday. According to the strategic roadmap, the initial phase will focus on launching Semi-Knocked-Down (SKD) vehicle assembly in Tashkent. The subsequent phase will establish a full-cycle production ecosystem within the Tashkent Free Economic Zone (formerly the Angren FEZ) in the city of Angren, Tashkent province. This phase will also aim to boost domestic localization rates and expand into export markets.
It was reported in June 2025 that Volkswagen had signed a foundational agreement to debut SKD assembly in Uzbekistan in partnership with Alyans Auto, a subsidiary of Uzavtosanoat. The agreement outlined licensing rights, SKD assembly with a structured transition toward Complete Knocked-Down (CKD) manufacturing, and close technological collaboration. The project also entails deploying Volkswagen’s global quality management standards and expanding its service infrastructure across Uzbekistan.
At the time of the initial announcement, it was disclosed that components would be sourced from China. Under this joint venture, the German automaker intends to roll out eight distinct models to the domestic market, ranging from compact sedans to SUVs.
According to the presentation, the domestic vehicle lineup has expanded, and long showroom waiting lists have officially vanished. This year, 20 banks were mobilized to finance vehicle purchases, enabling 95% of all cars to be sold through installment plans and accessible consumer lending programs.
Simultaneously, the production of vehicles and components for neighboring export markets continues to grow. New supply chains and cooperative networks are actively taking shape around the sector, which now employs over 10,000 young specialists working with cutting-edge manufacturing technologies. Today, more than 300 domestic enterprises supply components for Chevrolet, while approximately 40 localized businesses provide parts for KIA and BYD.
The presentation also mapped out a strategic milestone: scaling the automotive industry to reach the "1 million mark" in terms of both annual production volume and sector-wide employment.
By the end of 2025, Uzbekistan's passenger vehicle production reached 457,900 units, marking a 6.7% year-on-year increase. Despite this overall growth, the output of traditional, mass-market models like the Cobalt, Damas, and Onix saw a decline. Consequently, Chevrolet's market share slipped to 83.2%, while the production volumes of Chinese and other international brands multiplied several times over.
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