President of Uzbekistan Shavkat Mirziyoyev has signed a Resolution approving the investment agreement for the organization of production of electric and hybrid vehicles BYD and their components in Uzbekistan, Gazeta.uz reports.
The company "Uzavtosanoat" and the Chinese BYD Auto agreed on organizing full-cycle production of cars in Uzbekistan as early as August 2022. Prior to this, the parties conducted a study of the automotive market.
On December 29, 2022, "Uzavtosanoat" (60% share) and BYD Europe B.V. (Netherlands, 40%) established a joint venture, BYD Uzbekistan Factory. On September 26, 2023, a contract for the implementation of the project was signed between the government of Uzbekistan and the investor. The BYD brand was officially introduced in Uzbekistan since the beginning of 2023.
According to the new Resolution, the investor and the joint venture are obliged to attract investments throughout the entire project implementation period in the amount of $160 million, including $60 million in direct foreign investment.
On the first stage, production of electric and hybrid vehicles using the method of semi-knocked-down assembly (CKD) with a production capacity of up to 50 thousand units is planned to be launched during 2024. In subsequent stages of the project implementation, the capacity is planned to be increased to 500 thousand units per year.
The investor must assist in the phased localization of production at domestic enterprises of components and spare parts for the manufactured vehicles, including glass, seats, plastic parts, and bumpers, as well as create 1000 jobs.
In addition, the investor undertakes to allocate funds from the joint venture for conducting research and regular training of local personnel, including at BYD facilities abroad.
The President instructed the Ministry of Investments, Industry and Trade, and the company "Uzavtosanoat" to negotiate with BYD on including provisions in the contract, in addition to plans to achieve a production capacity of up to 500 thousand units per year, about increasing the localization level to 60%, creating 10 thousand jobs, as well as expanding the list of countries to which cars will be exported on a permanent basis, in addition to the export countries determined by the joint venture.
The contract also plans to include issues related to the development of measures to protect consumer interests when purchasing high-quality and safe electric and hybrid vehicles, ensuring their compliance with local climatic conditions, and providing warranty services, as well as creating equal conditions for granting benefits and preferences to all enterprises producing cars, including the investor.
Earlier, it was reported in the same resolution that the BYD company requested the government of Uzbekistan to restrict the "unregulated" import of electric and hybrid vehicles. This is explained by the fact that privately imported models are not adapted to local climatic and road conditions, and also do not have an official warranty.
President Mirziyoyev instructed the Ministry of Economy and Finance, the Ministry of Investments, Industry and Trade, and the company "Uzavtosanoat" to submit proposals to the Cabinet of Ministers of Uzbekistan by July 1, 2024, aimed at implementing the investor's requirement to regulate the import of electric and hybrid vehicles under the BYD brand based on the existing legislation, including competition legislation acts, as well as the principles of the World Trade Organization.
CentralasianLIGHT.org
March 19, 2024