Tashkent, Uzbekistan (UzDaily.com) — German automotive giant Volkswagen and Uzbekistan’s Uzavtosanoat have signed a strategic partnership agreement. The news was shared by Martin Sander, Member of the Board of Management responsible for Sales, Marketing, and After Sales at Volkswagen Passenger Cars, on his LinkedIn page.

“As I write this message, the ink on our new agreement is still drying. This contract marks a significant milestone in Volkswagen’s strategic expansion into the Uzbek market — a fast-growing and rapidly transforming hub in Central Asia with enormous potential,” Sander stated.

According to him, Uzbekistan is on the cusp of major growth in its automotive market, driven by steadily rising household incomes. “The strength of the Volkswagen brand is particularly appealing to Uzbekistan’s growing middle class, which values reliable, high-quality German-made vehicles,” he emphasized.

Sander also highlighted demographic trends as a key factor boosting demand: “Population growth means an increasing need for modern, dependable vehicles — both now and in the future.”

He noted that Volkswagen’s product portfolio is well aligned with the expectations of Uzbek consumers: “We’re offering eight models — from sleek sedans to spacious SUVs — precisely the types of vehicles Uzbek buyers are looking for.”

As part of its supply chain optimization strategy, Volkswagen plans to utilize its production facilities in China. “Thanks to Uzbekistan’s advantageous geographic location — at the crossroads of Europe and Asia — we can efficiently supply the market through Volkswagen China. This will significantly reduce logistics costs and lower our carbon footprint,” the company representative explained.

Vehicle production will be launched within Uzbekistan in cooperation with Alyans Auto, a subsidiary of Uzavtosanoat.

“We will begin with semi-knocked down (SKD) assembly at Alyans Auto, which has built a solid reputation in the region for its engineering expertise and production capabilities,” Sander noted, adding that UzAuto remains the market leader in Uzbekistan’s automotive industry.