Automotive industry in uzbekistan

The potential business interest of the investor
In accordance with the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 812 dated 12/29/2020, in order to support the use of electric vehicles, it was envisaged to develop and submit to the Cabinet of Ministers of the Republic of Uzbekistan with the involvement of international consulting organizations and foreign experts by February 1, 2021, a draft Concept for the production of passenger cars and motor vehicles are driven only by an electric motor at the enterprises of Uzavtosanoat JSC. In addition, when forming the State Budget for 2021 and in subsequent years, the Ministry of Finance of the Republic of Uzbekistan should provide for the abolition of fees for the purchase and (or) temporary importation into the territory of the Republic of motor vehicles driven only by an electric motor, paid by the owners (users) of motor vehicles when they are registered with the internal affairs bodies. And finally, a number of ministries needed to develop, based on international practice, a “roadmap” for the organization of the installation of charging terminals for the maintenance of motor vehicles driven only by an electric motor, using modern technological systems, and submit it for approval to the Cabinet of Ministers.
In accordance with the Decree of the President of the Republic of Uzbekistan No. PP-4397 dated 18.07.2019, the main indicators of the development of the automotive industry of the Republic of Uzbekistan in 2019-2023 are considered to be the following:

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  increase in the annual production of passenger cars to 350 thousand units;
  
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  bringing the localization level of passenger cars to an average of 60 percent;
  
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  increase in the annual production of trucks and buses to 10 thousand units;
  
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  bringing the annual volume of car exports to 100 thousand units;
  
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  introduction of modern methods of corporate governance, as well as an automated accounting system “ERP”;
  
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  updating of the model range of cars, including the production of a new modern model of a passenger car, accessible to the general public;
  
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  attracting investors through the initial public offering (IPO) on the domestic and international stock markets of shares of at least two joint-stock companies that are part of Uzavtosanoat JSC.
  

It is planned to attract investments not only in the production of passenger cars but also trucks. More details about this can be found based on the Resolution of the Cabinet of Ministers No. 55 of 31.01.2020.

Before 1992, Uzbekistan had no automotive industry, being part of the Soviet Union. In post-Soviet times, UzDaewooAuto, SamKochAvto, GM Uzbekistan new auto producing plants were built with South Korean and American help. With production surpassing more than 200,000 per year, Uzbekistan exports automobiles to Russia and other CIS countries.

GM Uzbekistan, a joint venture, with manufacturing operations in Asaka features three vehicle assembly lines and one stamping operations plant with a growing local supply base supplemented by commodities and automotive parts largely from Asia Pacific region (e.g., steel coil from Russia, advanced technology parts from South Korea, etc.). With multi-shift operations, employment is estimated around 7000 people in a region otherwise known for agricultural production.