China has invested $30 mn in the production of electric vehicles in Uzbekistan. This investment is expected to create more than 700 jobs and boost the local economy.
Project details
The project will be located in a free economic zone in the Khorezm region. The Chinese Silk Road Company is implementing the project, with $24 mn of the total cost coming from foreign investment.
Impact on domestic and Central Asian market
The electric vehicles produced as a result of this investment are expected to be sold mainly in the domestic market and the countries of Central Asia. In the first half of 2021, Uzbekistan imported 268 electric vehicles, mainly from China. This new venture is expected to significantly increase the availability of electric vehicles in the region.
China’s growing influence in global automotive industry
China’s influence in the global automotive industry is growing rapidly, with Uzbekistan being one of the latest countries to experience this trend. The Chinese automaker BYD sold more electrified cars than Tesla and saw a 307% increase in exports in 2022. The company also plans to establish factories overseas and expects to overtake Japan soon by shipping cars to Asia and Europe.
Earlier, Daryo wrote that the influence of China as a trade partner has been steadily growing particularly since 2015. During peak years, the annual growth rate reached up to 48%. China has largely solidified its position as Uzbekistan’s primary trading partner, occasionally being surpassed by Russia.
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