Russian AvtoVAZ may launch car assembly in Uzbekistan under a local brand

Russian carmaker AvtoVAZ may begin assembling vehicles in Uzbekistan under a local Uzbek brand, TASS reported, citing the company’s CEO, Maxim Sokolov. If Uzbek partners are ready, this could begin as early as 2025.

“We are currently focused on resuming cooperation with our successful partners – not only through the simple export of our finished vehicles, but also through gradual localization of our products and, potentially, even production under a local Uzbek brand,” Sokolov stated.

He noted that the initial focus will be on the Lada Largus model, and the project is already in an active planning phase.

For the initial rollout, AvtoVAZ is considering either deep localization of the Largus or assembling the vehicles using SKD (semi-knocked-down) kits.

Last week, Sokolov announced the company’s plans to return to export markets. AvtoVAZ intends to re-enter the Uzbek market with the Lada Granta and the new Iskra models.

“First and foremost, we’re targeting the Belarusian market, as well as Uzbekistan – where we aim to restore our previous sales volumes from before 2022 – and Kazakhstan,” he said.

Localization of Lada in Uzbekistan

SKD assembly of Lada vehicles in Uzbekistan began in October 2021. Three models – Vesta, Largus, and Xray – were produced for the local market at the ADM Jizzakh plant, operated by the Roodell company.

In June 2022, it was reported that Roodell was preparing to launch full-cycle production of Lada cars. New facilities were under construction at the plant for the production of new models.

In April 2023, AvtoVAZ President Maxim Sokolov spoke about plans to launch production of the new Lada Vesta model in Uzbekistan. The company aimed to produce up to 30,000 vehicles annually at the Jizzakh site.

However, in September 2023, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) added AvtoVAZ to its sanctions list (SDN list).

Last spring, AvtoVAZ’s export director Ilya Savinov told Spot about plans to return to the Uzbek market. The company was engaged in negotiations with local partners and intended to localize Lada production.

In July 2024, Lada production in Uzbekistan resumed. According to the Statistics Committee, six vehicles were produced that month. However, production was halted again in August.

In September 2024, CEO Maxim Sokolov expressed readiness to restart projects in Uzbekistan, acknowledging that progress had stalled. He added that AvtoVAZ’s proposals had been submitted and were being discussed at the highest political level.