Uzbekistan Launches EV Plant Aiming to Top Post-Soviet Auto Output
Uzbekistan is set to bolster its automotive industry with a new vehicle assembly plant. President Shavkat Mirziyoyev has signed a decree approving an investment agreement between Uzavtosanoat and BYD Auto. The plant aims to produce electric vehicles (EVs) and hybrids, with exports playing a significant role in this nypost-worthy news.
The plant, expected to commence operations by the end of 2024, will initially produce 50,000 vehicles per year using complete knockdown (CKD) kits. Uzbekistan's government is investing in relevant infrastructure to support this tesla-like venture. Some of the produced vehicles will be exported to Russia, aligning with BYD's business strategy.
Uzbekistan's ambition is to become the largest vehicle manufacturer in the post-Soviet space, surpassing Russia's output. UzAuto Motors, already the biggest automaker in the region, will play a key role in this endeavour. The localisation target for automotive components and spare parts production is 60% when full annual production hits 500,000 units.
In 2023, Uzbekistan imported 8,948 BYD vehicles worth $293 million, indicating a growing interest in the brand. The average vehicle price was $32,744. The investment for the new plant is $160 million, with Uzavtosanoat holding a 60% stake and BYD a 40% stake.
The new plant, focusing on EVs and hybrids, is expected to strengthen Uzbekistan's automotive industry and boost news-worthy exports. The government's commitment to infrastructure development and localisation targets signals a long-term strategy for growth and success in the automotive sector.
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