UzAuto Motors to produce budget-friendly minivans in Khorezm with $100M investment

On May 2, President Shavkat Mirziyoyev held a meeting on the priority tasks for the comprehensive development of Khorezm region, according to the president’s spokesperson Sherzod Asadov.

The president announced that a Slovak company had invested $10 million in Toprak-Kala and begun developing 500 hectares of sandy land. Additionally, the foreign investor intends to bring another 4,500 hectares of sandy land into agricultural use through a $170 million investment, with plans to cultivate rapeseed and produce bioethanol. The president instructed responsible officials to support the implementation of this investment project.

According to Mirziyoyev, the Damas plant in Toprak-Kala is set to launch production of “affordable vehicles that are in high demand on the market.”

The project involves manufacturing a vehicle that meets Euro-5 environmental standards and can seat seven people. The total investment is projected at $100 million.

The president instructed that negotiations with partners be completed within the current year, and that semi-knocked-down (SKD) assembly should begin in 2026. By 2027, the goal is to transition to full-cycle production and achieve 50% localization.

UzAuto Motors’ Khorezm branch was established in 2013, and the first vehicle rolled off the assembly line a year later. The plant currently manufactures Damas and Labo vehicles.

Meanwhile, in Tashkent, self-employed taxi drivers have been permitted to operate minivans with a seating capacity of at least 4 and no more than 8 passengers. The Ministry of Transport is expected to approve the list of eligible vehicles. The pilot program came into effect on April 15 and will run through the end of 2026.