Volkswagen may open production plant in Tashkent

Uzbekistan currently operates five car manufacturing plants in partnership with major international brands, including Chevrolet, BYD, KIA, and Hyundai. The country plans to launch three additional manufacturing facilities – Volkswagen, Foton, and JAC – by the end of this year.

The automotive expansion has created new supply chains, providing employment for more than 10,000 young people working with modern technologies. Component localization is also growing, with over 300 domestic enterprises supplying parts for Chevrolet, and nearly 40 companies manufacturing components for KIA and BYD. The government's long-term objective is to scale up total production and increase the number of people employed across the broader automotive supply chain to one million.

The presentation outlined a multi-stage approach for the Volkswagen project. The first phase will focus on semi-knocked-down (SKD) assembly in the capital city of Tashkent. The subsequent phase involves establishing a full-cycle manufacturing infrastructure within the Angren Free Economic Zone. This shift to full production aims to increase local content levels and open up new export channels. Founded in 1937, the German automotive giant Volkswagen represents one of the largest conglomerates in the global automotive industry, manufacturing vehicles under prominent brands such as Volkswagen, Audi, Porsche, Skoda, Seat, Bentley, and Lamborghini.

Officials noted that current geopolitical and global shifts continue to impact the international automotive sector. Consequently, government leadership emphasized the need to secure technological independence, implement cutting-edge innovations, and develop competitive national products that face fewer vulnerabilities from export and logistics restrictions. To support this initiative, Uzavtosanoat JSC will actively develop its internal research and development (R&D) operations.

Furthermore, state authorities have been tasked with executing a comprehensive strategy to develop the automotive spare parts market by the end of 2026, which will involve partnering with international consulting firms.

President Mirziyoyev stressed that the automotive industry remains a core strategic pillar of the national economy. To maintain momentum, the president issued targeted directives to intensify market competition, deepen local component manufacturing, and foster a national school of automotive engineering.