Implications of China’s presence on the automotive industry in Uzbekistan

China’s influence is progressing rapidly in the automotive industry, representing one of the good successes associated with the Belt and Road Initiative, and Uzbekistan is among the beneficiaries of this huge project.

China, which is making great strides in this sector, has become a global leader in the automotive export market. In 2022, Germany overtook and became the world’s second largest auto exporter. Moreover, the Chinese automaker “Beed” sold more electric vehicles than Tesla, and its exports rose by about 307 percent during the same year. BEED also intends to establish factories abroad, and hopes to soon overtake Japan by sending cars to Asia and Europe; Uzbekistan, which is a strategic destination, represents the first place where “Beed” is penetrated outside China.

Hybrid, Chinese-made electric cars have become part of the street scene of “Tagshand.” The Public Enterprise of Uzbekistan “Ozvtosanoat” (“Oz Otto”) recently announced a partnership with “Beed Otto”, a domestic automotive industry, the production of gasoline engines, electric, and batteries. With more than 70 branches, 27,000 employees, Oz Otto is the largest car holding company in Central Asia.

The decision to determine the production of cars in Uzbekistan is part of a broad strategy, aimed at developing the country’s industrial sector. Already, in 2022, Uzbekistan, Central Asia’s most densely populated country, with some 35 million people, was the first importer of Chinese cars. As Beijing continues to strengthen its presence in the international automotive industry, partnerships, such as those with Ozftosanoat, are expected to develop.

The capital of Uzbekistan, Tashkent, has recorded unprecedented rates of construction, demolition and construction of new homes; One of the results of this situation was the deterioration of air quality in particular due to car emissions pollution. In its 2021 report, on the world’s air quality, IK Air announced that Tashkent is the second city in annual concentration with an average of 2.5 millimetres of suspended particles, which would harm health greatly.

Uzbek authorities take this health risk seriously. In December, President Mirzyaev signed a decree to launch a blueprint for a transition towards a green economy and to ensure green growth until 2030.

Add this outline to previous procedures. Since 2019, customs duties and taxes on imported electric vehicles have been abolished, and the costs of registering an electric vehicle in the traffic police have been abolished. Currently, only value added charges, amounting to 15 percent of the total customs value, are necessary for the customs clearance of an electric vehicle. Furthermore, the government has taken a decision to grant public support for the production of electric vehicles in the country in order to reduce harmful emissions, and support the development of a green economy.

Finally, the development of electric vehicle infrastructure facilities is supposed to be significant over the next two years. Until 2025, at least 2,500 cargo stations are supposed to be established, as they will be compulsory at the new commercial hubs, leisure and leisure venues, petrol stations, hotels, and all infrastructure adjacent to highways from January 2024.

The proliferation of Chinese automobile exports and manufacturing abroad is one of the global successes associated with the “Belt and Road” initiative, and many goals, first of all contributing to the introduction of Chinese cars abroad, have long been Beijing’s priority. It should also be noted that this expansion is part of the key elements of the “Belt and Road Initiative”, including the development of transport, the development of sustainable reconstruction and the promotion of the general idea that the “Belt and Road Initiative” brings easy solutions in host countries.