The transformation office for reforming the Uzavtosanoat and its structural enterprises launched its operations. The office was set up in accordance with the Jan. order of the President of Uzbekistan and was formed jointly with the Boston Consulting Group (BCG), the company said in a statement.

"The joint implementation of the industry transformation program will facilitate necessary economic conditions for reforming the automotive market and improve the competitive environment in the country through the transformation and gradual privatization of Uzavtosanoat and its structural enterprises," the statement said.

Reportedly, foreign and local experts with many years of leadership experience at car maker giants such as Daimler, Fiat and Porsche were involved in the work of the transformation office. They should help build "an effective business model that is competitive in market conditions."

"In the process of transformation, it is planned to abandon the old model of industry management and modernize production and business processes, which will directly affect the quality and volume of products," the company added.

The results should be the development of new areas of production and an increase in the level of localization up to 70%, which will reduce the retail cost of products. At the first stage, the program involves the launch of local production of models such as the Chevrolet Tracker and Onix.

The first meeting of the transformation office was held with the participation of representatives of the Ministry of Finance, the Ministry of Economic Development and Poverty Reduction, as well as international experts from BCG.

The transformation processes will be carried out in seven axes, indicated in the Development Strategy of Uzavtosanoat, developed jointly with BCG:

• Sales and Marketing;
• Cooperation with new producers and privatization;
• Consumers and suppliers;
• Improving production processes;
• Coordination of working capital;
• Improving financial performance;
• Digitalization and implementation of information technologies.

Within the framework of the transformation strategy and program, the following stages were outlined:

• In 2021-2022 - transformation of Uzavtosanoat and its structural enterprises, as well as optimization of current operating activities (corporate governance, production, finance, procurement, sales and after-sales services) and preparation for privatization;
• In 2022-2025 - the launch of production together with partners of new popular car models, as well as a two-fold reduction in the time spent on car production, an increase in the level of localization up to 70%, preparation for the production of electric vehicles and a phased privatization of Uzavtosanoat stakes in subsidiaries.