The State Assets Management Agency of Uzbekistan (UzSAMA) has confirmed that the privatization of the state's stake in UzAuto Motors will be conducted strictly through open international bidding. The government officially stated that no company, including long-term partner American corporation General Motors, will be granted priority rights or special preferences in the sale of this strategic asset. This move represents a crucial strategic shift toward demonopolizing the national automotive market, fostering free competition, and maximizing foreign capital inflow into the state budget.
International Audit and Asset Valuation
As part of the privatization program, UzSAMA has engaged prestigious international consulting firms to prepare the assets for sale according to global standards. Specifically, Alvarez & Marsal, a global leader in crisis management and corporate restructuring, has been appointed to oversee the current processes.
According to Alisher Miraliev, Deputy Director of UzSAMA, international consultants are currently conducting comprehensive legal, tax, and financial due diligence on the 99.7% state stake in the automaker UzAuto Motors and the 100% stake in the engine manufacturing subsidiary, UzAuto Motors Powertrain. The due diligence process involves evaluating the enterprises' true market value, existing debt obligations, supply chain efficiency, and hidden risks.
The agency is keen to accelerate the privatization process and attract major global automotive players to the bidding. The final asset realization strategy will rely on the consultants' recommendations. The decision on whether to sell both large enterprises as a single integrated lot or as separate independent assets will be based on economic viability and international investor demand.
The Strategic Alliance with General Motors
A major point of interest for market participants and potential buyers is the future relationship with General Motors. According to Avtostrada, the current strategic alliance agreement between Uzavtosanoat and General Motors was signed in October 2017 for a 10-year term, meaning its legal force expires in 2027.
Under this contract, UzAuto Motors has enjoyed exclusive privileges for years: a license to assemble GM models, the right to use the globally recognized Chevrolet brand, free access to the corporation's global technologies and component base, and the ability to export finished vehicles to CIS markets.
However, the expiration of the license in 2027 adds a unique layer of intrigue to the privatization process. If GM does not win the tender and the new investor is a different international automotive conglomerate (such as a European, South Korean, or Chinese giant), the plants' technological lines, supply chains, and licensing agreements will require a complete overhaul post-2027, or the platform will need to be adapted to an entirely different brand. The government's open declaration that GM holds no priority rights ensures bidding transparency and heightens the interest of European and Asian automotive corporations in acquiring the facility.
Macroeconomic Scale and Washington Negotiations
The privatization of UzAuto Motors carries high geopolitical and macroeconomic significance beyond the corporate level. In November 2025, during a visit to Washington, President of Uzbekistan Shavkat Mirziyoyev held a dedicated meeting with Shilpan Amin, Senior Vice President and President of General Motors International. These high-level negotiations focused on developing production cooperation, deepening domestic localization, and implementing joint projects in advanced intelligent technologies and raw materials essential to modern mechanical engineering.
According to official U.S. State Department projections, Uzbekistan's automotive industry plans to allocate approximately $5 billion over the next three years to import automotive parts, assembly kits, and components. This massive capital flow is tied not only to maintaining current production capacities but also to a fundamental modernization of the entire automotive cluster, specifically transitioning to the production of next-generation engines and vehicle models. Concurrently, the U.S. and Uzbek governments are analyzing opportunities to expand bilateral strategic partnership within the framework of the upcoming open bidding and privatization of UzAuto Motors.
As Uzbekistan accelerates its efforts to join the World Trade Organization, placing its largest monopoly enterprise on the open market for foreign and domestic investors demonstrates the government's firm commitment to economic liberalization. This serves as one of the clearest indicators of the country's transition from a traditionally closed economic model to a globally integrated, competitive open market.
