Tashkent, Uzbekistan (UzDaily.uz) — Uzbekistan’s State Assets Management Agency will soon hold open tenders to privatize state stakes in UzAuto Motors and UzAuto Motors Powertrain. The agency’s Deputy Director Alisher Miraliyev said this on 17 September at the Cbonds International Conference, Spot reported.
UzAuto Motors is the country’s largest national car manufacturer and is part of the Uzavtosanoat holding. The state owns 99.7% of the company, while another 0.3% was previously placed into free circulation on the Tashkent Stock Exchange.
According to Miraliyev, the state stakes in UzAuto Motors and UzAuto Motors Powertrain will be sold through open tenders. The exact timing of the tenders was not specified in the material provided.
The company’s history dates back to 1992, when it was established as a joint venture with South Korean conglomerate Daewoo. The company later began cooperation with US-based General Motors.
In 2019, the Uzbek government fully bought out the stakes held by foreign partners. The company was subsequently renamed UzAuto Motors, while General Motors ceased to be a co-owner of the business. At the same time, the US company maintained technological cooperation with the manufacturer, including the supply of components and licenses.
The company’s state ownership status provided it with various benefits, state guarantees on loans, subsidies and preferences for production modernization.
The source material also contains critical assessments of the effectiveness of state management of the company, including claims that it produced outdated vehicles, charged high prices and saw sales decline after the automobile market was opened to foreign manufacturers. These assessments are not supported by additional data in the material provided.
One of UzAuto Motors’ latest products mentioned in the material is the Chevrolet Suburban, described as the most expensive vehicle in the company’s history.
Earlier, the President of Uzbekistan instructed officials to switch to domestically produced vehicles.
