Automotive giant Volkswagen is to launch a “large-scale” assembly operation in Tashkent as part of a wider expansion that also includes new plants for Foton and JAC, according to Uzbekistan’s presidential press service and TASS.

The announcement followed a meeting in which Uzbekistan President Shavkat Mirziyoyev reviewed proposals to develop the automotive industry, expand production capacity and improve competitiveness.

Citing the presidential press service, Russian news agency TASS reported that all three plants are due to open by the end of the year.

For Volkswagen, the first stage will involve semi-knocked-down assembly in Tashkent before the project moves to a deeper manufacturing model.

“According to the plan, the first stage involves launching large-scale assembly operations in Tashkent,” the presidential office said.

“The next stage will focus on establishing a full production cycle in the Angren Free Economic Zone, increasing the level of localisation, and entering foreign markets.”

Additionally, “progress toward reaching the 1 million mark in the automotive industry in both production volume and employment was reviewed”.

According to Just Auto’s parent GlobalData, in 2025, Uzbekistan’s automotive industry had a total production capacity of 652,700 vehicles and produced 411,720 vehicles.

The country is utilising roughly 63% of its total production capacity, indicating ample room for growth and continued expansion in the sector.

Volkswagen does not currently operate its own manufacturing plant in Uzbekistan.

However, the owner of Audi and Porsche entered a strategic partnership with state-backed automotive industry group Uzavtosanoat in June 2025.

The Volkswagen project comes as Uzbekistan seeks to position itself as a regional auto manufacturing hub with stronger local content and export potential.

The development reflects a broader shift in Uzbekistan’s car market.

“In recent years, Uzbekistan’s automotive industry has entered a completely new stage of development focused on competition and consumer interests. Whereas a decade ago the automotive market was associated with a single manufacturer and long queues, today five automobile plants operate in cooperation with major brands such as Chevrolet, BYD, KIA, and Hyundai,” the official statement read.

The government said the sector has become a major industrial employer and a driver of supplier development.

More than 300 enterprises now supply components for Chevrolet, while around 40 supply KIA and BYD.

More than 10,000 young specialists are working in automotive-linked production chains using modern technologies.