From Assembly to Full Cycle: How Uzavtosanoat Shapes Automotive Ecosystem in Azerbaijan

Tashkent, Uzbekistan (UzDaily.uz) — The automotive joint venture in Hajigabul, Azerbaijan, is transitioning from a semi-knocked-down (SKD) assembly site into a full-scale manufacturing complex supported by a localized supply chain. This evolution reflects the broader strategic initiative of Uzbekistan's Uzavtosanoat to build robust regional manufacturing ecosystems outside its domestic borders, according to statements made by the Deputy Minister of Investments, Industry, and Trade of Uzbekistan, Khurram Teshabaev, in an interview with Report.az.

The project originally launched in 2022 with the SKD assembly of Chevrolet passenger cars and Isuzu buses. Since its inception, the facility has manufactured more than 9,000 units, a milestone that the deputy minister noted "confirmed the high potential of this cooperation and established a solid foundation for the subsequent phase of the project's development."

The ongoing second phase of development represents an investment of US$84.3 million and is being jointly executed alongside Azermash CP. The centerpiece of this expansion is a full-cycle manufacturing plant scheduled for commissioning by mid-2027. The plant will specialize in the complete production of the Chevrolet Cobalt model. Key implementation milestones have already been reached, including the identification of parts suppliers and the placement of orders for primary technological lines and production equipment.

"Following the commissioning of the enterprise, production will transition from simple assembly to a full-scale industrial cycle, which will significantly increase manufacturing volumes and expand the available model lineup," Teshabaev stated.

A core component of the second phase is the phased escalation of localized manufacturing. The plan outlines the establishment of a localized network of component suppliers within Azerbaijan and the gradual mastery of more advanced technological processes. The deputy minister explained that these steps "will increase the domestic value-added contribution and stimulate growth across related industrial sectors."

The Hajigabul automotive project constitutes a key part of the broader bilateral investment portfolio between Uzbekistan and Azerbaijan, which carries an estimated total potential value of US$10 billion. Automotive manufacturing and the electrical engineering sector have been prioritized as strategic pillars to drive industrial integration and connect regional supply chains across Central Asia and the South Caucasus.