Chinese manufacturer BYD will help Uzbekistan produce electric cars
One of the forms of implementation of the climate strategy is the popularization of environmentally friendly transport. The problem of reducing carbon emissions concerns all countries, regardless of region and size.
The infrastructure for electric transport is important – and to provide it, the authorities of Uzbekistan have joined forces with the Chinese corporation BYD. The latter is one of the global market leaders in the production of electric cars.
According to the IEA, the global market will have more than 145 million electric cars by 2030. While during the pandemic traditional vehicle sales dropped by about 16%, the electric car sector has continued to grow. Such trends speak in favor of zero-emission vehicles, which means that more attention needs to be paid to the development of this sector.
Following current market demands, the Uzbek government is developing a new strategy to provide modern electric vehicle infrastructure. To this end, the authorities have enlisted the support of a reliable partner, the Chinese corporation BYD, which will cooperate with local manufacturer UzAuto Motors. The government hopes that such an alliance will transform the industry and popularize electric cars.
It should be noted that Uzbekistan’s automotive industry is going through not the best of times, but the partnership with BYD opens new opportunities for the enterprise. Cooperation with the Chinese automobile concern will allow the creation of a large number of jobs. The partners are considering an option to organize the production of components or an assembly line in Uzbekistan.
UzAuto Motors currently has only one large market for its products – Kazakhstan – and it is an extremely small sector to ensure a full-fledged production. In addition, the automobile industry of Uzbekistan uses outdated approaches in the organization of processes, and it is in great need of modernization. In this case, the partnership with BYD is excellent support.
In order to establish cooperation, the Uzbek side needs to solve three important points. The first one is to develop a strategy for a long-term partnership, which will provide the first results in a few years. Next, the companies should establish production operations, and in the process, BYD will be able to transfer its experience and technological solutions to UzAuto Motors. After that, the government intends to introduce a state subsidy program that will help more people buy electric cars.
So far, the partnership between BYD and UzAuto Motors is outlined in a memorandum, which the parties signed in February this year. The first step will be to explore the possibility of producing environmentally friendly cars and buses at the facilities of the Uzbek company. At the same time, the companies will develop infrastructure for electric transport and its service. The creation of new facilities will increase the number of jobs and allow the local economy to develop and systematically implement an environmental strategy.
