Companies from the USA, South Korea and China have shown interest in the privatisation of UzAuto Motors and UzAuto Motors Powertrain in Uzbekistan. The authorities are developing a sale strategy and promise open international bidding. One of the key issues remains the technology licence of General Motors (GM), which expires in 2027.
WHICH COUNTRIES ARE INTERESTED IN BUYING
According to Gazeta.uz, the head of the State Assets Management Agency (SAMA) of Uzbekistan, Sokhibjon Murodov, reported the interest of foreign companies on 8 October.
He did not name the potential buyers or specify whether official offers had been received. Murodov stressed that companies' statements of a desire to acquire the enterprises do not mean that the state will sell the assets to them specifically. According to him, the bidding will be conducted on a competitive basis, without granting preferential rights to individual investors.
HOW THE PREPARATION FOR THE SALE IS PROCEEDING
Preparation for privatisation began about two years ago. In 2025, SAMA engaged the international consulting company Alvarez & Marsal, which is analysing the enterprises, verifying assets and developing sale proposals.
The agency is currently determining the sequence of stages and the timing of the privatisation. The authorities then intend to select a consultant to organise the bidding, conduct an international valuation of the enterprises and carry out due diligence. After that, investors will be able to submit their proposals, and negotiations will be held with the participants offering the best terms.
99.7% of UzAuto Motors shares and 100% of UzAuto Motors Powertrain shares will be put up for sale. The first company produces Chevrolet cars at plants in the Andijan and Khorezm regions. The second has been manufacturing engines and other power units in Tashkent since 2008.
WHAT ROLE GENERAL MOTORS PLAYS
Cooperation with the American concern General Motors is of particular importance for the future owner. According to UzAuto Motors' memorandum for investors for November 2025, the alliance agreement between Uzavtosanoat and GM, concluded in October 2017, is indefinite. However, the technology licence is valid for the period up to 2027.
It permits the production of certain Chevrolet models, the use of GM technologies and trademarks, as well as the sale of cars in agreed markets. The licence is non-exclusive and non-transferable.
Murodov said that the possibility of extending the agreements with GM is being taken into account when developing the privatisation strategy. Thus, the terms of further cooperation with the American concern remain one of the issues important for assessing the prospects of the enterprise.
CAN PRIVATISATION INTENSIFY COMPETITION
The interest of companies from the USA, South Korea and China points to international competition for Uzbek automotive assets. Against this background, the deal can also be viewed in the broader context of the struggle for positions in the Asian market, where Chinese manufacturers are playing an increasingly prominent role.
For American and South Korean companies, participation in the privatisation could potentially become a way to strengthen their presence in the region.
