President Shavkat Mirziyoyev signed a decree approving an investment agreement to launch the production of BYD electric and hybrid vehicles and their components in Uzbekistan on Monday.

Earlier in August 2022 Uzavtosanoat and BYD Auto agreed to launch the production of full-cycle cars in Uzbekistan back. Prior to this, the parties conducted a study of the automobile 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, an agreement on the implementation of the project was signed between the government of Uzbekistan and the investor.

It follows from the resolution that the investor and the joint venture, as part of their obligations, must draw investments totaling $160 million throughout the entire period of project implementation, including $60 million worth of foreign direct investment.

At the first stage, during 2024, it is planned to launch the production of electric and hybrid cars using the small-knot assembly (SKA) method, increasing the production capacity to 50 thousand units. At further stages of project implementation, capacity is planned to be increased to 500 thousand per year,

The investor must assist in the gradual localization of production at domestic enterprises of components and spare parts for manufactured vehicles, including glass, seats, plastic parts and bumpers, and also create 1,000 jobs.

While, the investor undertakes to contribute funds from the joint venture to conduct research and regularly improve the skills of local personnel, including at BYD enterprises abroad.

Shavkat Mirziyoyev instructed the Ministry of Investment, Industry and Trade, the Uzavtosanoat to hold talks with with BYD on including in the agreement, in addition to plans to achieve production capacity of up to 500 thousand per year, provisions on bringing the localization level to 60%, creating 10 thousand jobs, and also expanding the list of states to which cars will be exported on an ongoing basis, in addition to the export states identified by the joint venture.

As previously reported, the same resolution said BYD asked the Uzbek government to restrict “chaotic” imports of electric and hybrid vehicles. This is due to the fact that privately imported models are not adapted to the local climate and road conditions, and also do not have an official guarantee.

President instructed the Ministry of Economy and Finance, the Ministry of Investment, Industry and Trade and the Uzavtosanoat company to submit to the Cabinet of Ministers, by July 1, proposals aimed at implementing the investor’s request to regulate the import of electric and hybrid cars under the BYD brand on the basis of current legislation, including competition laws, as well as the principles of the World Trade Organization.