President of Uzbekistan, Shavkat Mirziyoyev, signed a resolution on March 18th, approving an investment agreement for the organization of electric and hybrid vehicle production by BYD and their components in Uzbekistan. This collaboration between "Uzavtosanoat" and Chinese company BYD Auto was initially agreed upon in August 2022, with the establishment of the joint venture BYD Uzbekistan Factory in December 2022.
The investment agreement outlines that the investor and the joint venture are committed to attracting a total of $160 million in investments throughout the project, including $60 million in foreign direct investments. The first phase aims to start production in 2024 with a capacity of 50,000 units, eventually scaling up to 500,000 units annually. Additionally, the investor is required to facilitate the localization of production components and create 1,000 jobs.
Furthermore, the agreement includes provisions for research, workforce training, and expansion of export markets. President Mirziyoyev instructed relevant ministries to negotiate with BYD to enhance localization levels, create more jobs, and ensure consumer protection standards. BYD requested the Uzbek government to regulate the import of electric and hybrid vehicles to guarantee quality and safety standards.
By July 1st, the Ministries of Economy, Investments, Industry, Trade, and "Uzavtosanoat" are tasked with proposing measures to address BYD's concerns regarding unregulated imports, aligning with national legislation and international trade principles. This collaboration signifies a significant step towards sustainable mobility and economic development in Uzbekistan.
