Automotive industry development under discussion

13 Jan 2021

On January 13, President Shavkat Mirziyoyev held a meeting to deliberate on the transformation of the mechanical engineering industry and the development of competition in the field.

This sectors is one of the leading in the national economy, accounting for 11 percent of industrial production. Meanwhile, according to estimates, there is a possibility of increasing production in this industry in Uzbekistan several times.

Today, a number of companies are showing interest in investing and organizing production in Uzbekistan’s machine-building industry.

In this regard, the head of state instructed the executives to introduce equal conditions for manufacturers based on the level of localization. In the meantime it is essential, as was underscored, to direct investments into the industrial assembly of automobiles, into the production of 50-60 thousand budget cars and electric vehicles a year.

This year, an enterprise for the production of spare parts will be put into operation in the Khorezm region, 4 more localization projects will be implemented in Andijan and 2 such schemes in Navoi region. Within the framework of the cooperation platform, 122 private enterprises will master the production of 80 types of components.

A program is currently underway in Uzbekistan to reform all state-owned companies. The President expounded on the issue at this meeting, too, and urged the officials in charge to set up, with the participation of specialists from abroad, an office for the transformation of Uzavtosanoat Joint Stock Company. The process will be coordinated by the Ministry of Economic Development and Poverty Reduction.

Transformation of 40 enterprises of the automotive industry will kick start by July 1. For the development of a competitive environment in the field, the President indicated the need to prepare 23 enterprises manufacturing spare parts and components for privatization. The task was set to put up for auction the shares of Uzavtosanoat in 14 organizations not related to the main activity of the company.

The meeting participants also discussed reforming the agricultural machinery sector. Goals for increasing economic efficiency, rational use of resources in the industry have been determined.

Responsible officials were instructed to optimize empty areas of enterprises, to reduce the cost price of equipment by up to 30 percent.

The objective has been set to organize the production of inexpensive equipment, raise its localization degree to 30 percent by the end of this year and at least 45 percent next year.

Executives in charge briefed the President on the ways to address the tasks discussed at the meeting.

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