President announces launch of low-cost car production in Khorezm

President Shavkat Mirziyoyev has announced the launch of a major automotive project in the Khorezm region. Speaking at a meeting on May 2 dedicated to the socio-economic development of the region, the President revealed plans for the Damas plant in Tuprokkala district to begin producing affordable cars in high demand on the domestic market.

The new vehicle, which will cost approximately $100 million to produce, will comply with the Euro-5 environmental standard and feature seven seats, catering to the needs of large families and budget-conscious consumers.

Officials were instructed to finalize negotiations with international partners by the end of this year, begin production using the large-unit assembly method in 2026, and transition to a full production cycle by 2027 with 50% localization.

In addition to the automotive initiative, the President highlighted an investment project led by a Slovak company. The firm has already invested $10 million to develop 500 hectares of sandy land in Tuprokkala. It plans to expand to an additional 4,500 hectares, with a total investment of $170 million. The company will plant rapeseed and produce bioethanol, contributing to the region’s green economy.

Officials were instructed to provide full support to ensure the successful implementation of both projects.