The global automotive sector is undergoing a period of profound transformation. The rapid development of electric transport, digital technologies, and intelligent control systems is fundamentally changing the traditional model of car manufacturing. In this process, countries that are quickly adopting advanced technologies gain a competitive advantage, while some major manufacturers face the need to adapt to new realities, failing to keep pace with the speed of transformation.
The changes observed in the operations of leading German automakers reflect not only the economic situation in Germany itself but also general trends in the global automotive market. Well-known companies such as Volkswagen, Mercedes-Benz, and BMW are trying to solve complex problems related to fierce competition in the electric vehicle market, declining sales volumes, and restructuring processes.
Volkswagen Group is considering cutting tens of thousands of jobs worldwide and optimizing some production capacities in Germany in the coming years. Mercedes-Benz is revising its business strategy in China, and BMW has announced a plan to reduce staff internationally. Financial indicators confirm growing pressure in the industry: Mercedes-Benz's net profit fell by more than 17% in the first quarter, and for BMW, this figure was 23%. Furthermore, the volume of deliveries for the Audi brand, which is part of Volkswagen, is noticeably decreasing in the Chinese and North American markets.
Experts point out that one of the main reasons for the current situation is the relatively slow transition to electric vehicles and intelligent technologies. Today, China has become one of the largest markets for new energy vehicles. According to data from the China Passenger Car Association, the share of new energy vehicles in retail sales in the country reached 62.9% in May. This figure indicates the success of technological modernization, significant investment in scientific research, and policies for the rapid implementation of innovative developments in China's industry.
Chinese companies place great emphasis on developing battery technologies, intelligent control systems, autonomous driving, and digital ecosystems. At the same time, some traditional manufacturers continue to derive their main income from internal combustion engine models. As a result, the criteria for competition in the global automotive market are changing: for consumers, not only the brand history matters, but also digital capabilities, intelligent functions, energy efficiency, and environmental performance.
These changes are also shaping a new approach in Germany. Some state leaders are promoting proposals to preserve existing production capacities and increase competitiveness by expanding industrial cooperation with Chinese companies. For example, Stefan Weil, Minister of the State of Saxony, emphasized the advisability of strengthening Volkswagen's partnership with Chinese automakers and did not rule out the possibility of assembling Chinese cars in German factories. Dirk Panther, Minister of Economy of the State of Saxony, supported the idea of attracting Chinese companies as strategic partners for Volkswagen enterprises in Zwickau.
According to experts, between 1999 and 2025, the geography of global automotive manufacturing has undergone fundamental changes. While the share of Europe and North America in total production is decreasing, China's share has grown from 3% to 36%, indicating a gradual shift of the center of the global automotive industry to Asia. In the era of technological transformation, the importance of international cooperation is increasing, as states and corporations strive to develop mutually beneficial cooperative interaction alongside competition. In this context, strategic partnership between Uzbekistan and China is gaining particular significance, as cooperation between the two countries in the areas of investment, industrial cooperation, green economy, electric transport, innovation, and high technology will continuously expand in the coming years. This cooperation contributes to the creation of modern production facilities in the country and increases the competitiveness of the industry.
According to the German publication 'Bild', the Volkswagen group has terminated plans to produce military weaponry and rocket components for the Israeli defense company 'Rafael' at its Osnabrück plant, withdrawing from cooperation with the Qatar Sovereignty Fund.
Previously, the head of the renowned automotive group, Oliver Blume, confirmed that negotiations were underway to retool the plant for military purposes, as well as to suspend the production of passenger cars starting in 2027.
However, this initiative sparked sharp dissatisfaction within Germany itself. Company employees, pacifist organizations, and opposition representatives demanded that 'Volkswagen' produce products exclusively for peaceful purposes.
In particular, the German 'The Left' party stated that the military actions of the Israeli government in the Middle East and the crisis in Gaza are reasons why such cooperation is absolutely unacceptable.
As part of large-scale reforms aimed at modernizing the urban and transport infrastructure in New Uzbekistan, projects to improve public transport are being implemented sequentially. State policy pays great attention to creating a safe, fast, and convenient transport system, reducing traffic jams, and ensuring environmental sustainability that meets modern requirements.
The comprehensive transport transformations taking place in the old city of Bukhara are a practical embodiment of these goals and mark a new stage in shaping the modern appearance of the city. This year, the Main Plan for Transport and Road Transport Infrastructure development was developed for the city of Bukhara. Based on this strategic document, extensive work is underway to fundamentally improve the public transport system, reduce congestion, and provide quality transport services to the population.
The project plans to create 21 new bus routes. Additionally, transport interchange hubs are being installed in densely populated areas, opening up new opportunities for passengers to move quickly and conveniently between different points. For intelligent traffic management, the 'Smart Traffic Light' system is being installed at 113 intersections in the city. This system allows for automatic regulation of traffic flows, reduction of traffic jams, and prioritization of public transport.
Furthermore, separate lanes for buses are being organized on seven central streets in the city, such as Muhammad Iqbal, Ibn Sina, Islam Karimov, Mirdustim, Gijduvon, Bahauddin Naqshband, and Mustaqillik. This guarantees that buses run on schedule, saving time for passengers. Work on renewing the public transport fleet is also proceeding at an accelerated pace. To ensure a higher quality of service for residents and guests of the region, 76 modern buses manufactured in China have been delivered to Bukhara by local entrepreneurs.
At the handover ceremony of the new vehicles, the head of Bukhara Region, Botir Zaripov, emphasized that this is a worthy gift for the citizens and visitors. According to the regional head, a total of 101 modern buses will be purchased for Bukhara Region during 2026. The first 25 of them were put into operation in February of this year by the company 'Bux Pit-Stop NGP' on routes No. 13 'Madaniyat' — 'Toqimachı' and No. 15 'Markazi bozor — Gurbinchha aholi punkti'. Now, both the newly arrived and previously brought buses will serve city routes based on a gross contract. It is noteworthy that these buses were delivered by local business entities such as 'Progress Mega Trans', 'Miramax Turist Trans', 'Buxaraneveshservis', and 'Miramax Travel', demonstrating the growing participation of the private sector in the development of the transport industry.
The second phase of the project plans to deliver another 86 new buses to the region by the end of the year to further expand the public transport network. An important aspect has been the introduction of the 'Gross Contract' system in public transport. Previously, drivers tried to meet the daily plan, but due to a decrease in passenger numbers in the evening, some buses stopped operating. In the new system, the driver or carrier has the right to operate according to the established schedule and cover the set distance, rather than depending on the number of passengers. This ensures stable and continuous operation of public transport from morning till evening.
As a result, residents of the city, as well as local and foreign tourists, will be able to use reliable, safe, and convenient transport services at any time of the day. Transport reforms in Bukhara are not limited to simply increasing the number of buses; it is an important step towards completely restructuring the life of the entire city in accordance with modern requirements, implementing the principles of a 'smart city', ensuring environmental sustainability, and creating a transport system oriented towards human interests. Thanks to modern buses, intelligent management systems, and new approaches, Bukhara will undoubtedly become one of the exemplary cities in the country, possessing not only rich historical heritage but also advanced, convenient public transport.
The delegation of Uzbekistan is participating in a high-level UN Forum on Sustainable Development Goals, which is taking place in New York, USA.
In 2026, Uzbekistan, China, Sao Tome and Principe were recognized as countries that have made significant progress on the sixth Sustainable Development Goal of the UN.
In Uzbekistan, the water stress indicator decreased from 169 percent in 2017 to 122 percent in 2022, corresponding to a reduction of 47 points.
Timur Butunbaev, Deputy Head of the Administration of the President of the Republic of Uzbekistan, spoke at the Forum and informed participants about the results achieved in Uzbekistan under the Sixth Sustainable Development Goal. During the Forum, a lecture was presented on institutional and legal reforms in water use in Uzbekistan, ensuring clean drinking water for the population, implementing water-saving technologies, digitalization of water management, as well as the development of Uzbekistan's regional water diplomacy.
