TASHKENT, Uzbekistan, June 12. German automaker Volkswagen and Uzbek company Uzavtosanoat have signed a strategic partnership agreement, marking a significant step in Volkswagen’s expansion into the rapidly growing and transforming automotive market of Uzbekistan, Trend reports.
"As I write this, the ink is drying on an exciting new contract that marks Volkswagen’s strategic expansion into the Uzbek market – a rapidly emerging and fast-evolving hub in Central Asia with huge potential," wrote Martin Sander, Member of the Board for Sales, Marketing, and After-Sales at Volkswagen Passenger Cars, on his LinkedIn page.
According to him, Uzbekistan is on the verge of significant growth in its automotive market, driven by a steady rise in the population's income.
"With rising income levels, the country is poised for an automotive boom. The strength of the Volkswagen brand resonates with Uzbekistan’s growing middle class, who are increasingly seeking high-quality German-branded cars," he emphasized.
He also pointed to demographic trends as an additional factor driving demand.
"The growing population means an increasing demand for reliable products, now and in the future," Sander said.
"We have a portfolio perfectly tailored to this market, with eight stylish sedans and spacious SUVs, exactly what Uzbek customers are looking for," he added.
As part of its supply optimization strategy, Volkswagen plans to leverage its production base in China.
"At the crossroads of Europe and Asia, Uzbekistan is a place we can serve effectively and efficiently through Volkswagen China. The proximity of our Chinese technology and manufacturing base will greatly benefit customers and enable us to minimize our logistical carbon footprint as well," the company representative explained.
Vehicle production will be launched in Uzbekistan in partnership with Uzavtosanoat’s subsidiary, Alyans Auto. "We will begin with the localization of semi-knocked-down (SKD) assembly at Alyans Auto, which has built a strong reputation in the region for its engineering expertise and production capacity," Sander stated, adding that UzAuto remains the leader in the country's automotive market.