Uzbekistan ramp up production capacity of electric and hybrid cars to 500,000 units per year

Uzbekistan ramp up production capacity of electric and hybrid cars to 500,000 units per year
/ bne IntelliNews
By bne IntelliNews March 24, 2024

The Ministry of Justice of Uzbekistan has unveiled plans to dramatically increase the production of electric and hybrid vehicles within the country to an annual output of 500,000 units, the ministry said on March 21.

This initiative is part of a broader strategy following the presidential decree approving an investment agreement for the establishment of electric and hybrid vehicle production and their components in Uzbekistan.

Uzbekistan already has a well-developed automotive sector based on Daewoo technology that was later taken over by US carmaker GM. GM exited and UzAvto is now owned by the state.

The investment agreement in EV production is a new direction for Uzbekistan as it seeks to add value to its production and outlines several key objectives, including the phased expansion of production capacities, enhancement of local component localisation, job creation, expansion of global export markets, consumer protection measures and the assurance of equal benefits for all automotive manufacturers in the country.

By setting a goal of a 60% localisation level in the upcoming phases of the investment project, Uzbekistan is keen on fostering a self-reliant automotive industry that leverages local resources and expertise. The initiative is also expected to generate 10,000 new jobs, significantly contributing to the nation's economic vitality.

Moreover, the government plans to widen the export horizons for the domestically produced electric and hybrid cars, thereby increasing Uzbekistan's footprint in the international automotive market. Consumer interests are also a priority, with measures in place to ensure the quality, safety and suitability of vehicles to local climatic conditions, alongside reliable after-sales services.

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