FROM ASSEMBLY TO TECHNOLOGICAL CAPABILITY: LESSONS FROM CHINA’S AUTOMOTIVE INDUSTRY FOR UZBEKISTAN’S INDUSTRIAL UPGRADING

Abstract

This article examines how production scale, technological learning, supplier integration and industrial policy interact in the transformation of China’s automotive industry, and assesses which elements of this experience may be relevant to Uzbekistan. The study uses a comparative industry-level approach based on secondary statistics and selected corporate cases, including BYD and the BYD–Toyota cooperation initiative. The analysis distinguishes vehicle production from domestic sales, brand ownership and the location of manufacturing, and treats observed associations as evidence of plausible mechanisms rather than conclusive proof of causality. China’s position in global vehicle production and electric-vehicle supply chains reflects the combined effects of a large domestic market, accumulated engineering capabilities, dense supplier networks, competitive pressure and sustained policy support. Uzbekistan has also developed significant production capabilities, including engine manufacturing, precision casting, machining and passenger-vehicle assembly. However, the depth of localisation cannot be assessed adequately through assembly volumes alone. The article proposes an evaluation framework based on domestic value added, supplier capability, productivity, research and development, export diversification and quality performance.