The BYD Uzbekistan Factory appealed to the government to impose restrictions on the unlawful importation of electric vehicles. The factory argues that these vehicles are not suited to the local climate and road conditions, and lack an official warranty.
This appeal was highlighted in the presidential resolution approving the investment agreement for the “Organisation of Production of Electric and Hybrid Cars and their Components in the Republic of Uzbekistan” project.
The Ministries of Economy and Finance, Investment, Industry and Trade, along with Uzavtosanoat, were tasked to present proposals to the Cabinet of Ministers. The aim is to regulate the import of electric and hybrid cars under the BYD brand by 1 July 2024.
The responsible individuals are expected to prepare proposals following existing legal documents. This includes legal documents about competition and the principles of the World Trade Organisation.
On 29 December 2022, a joint venture was established in the form of a limited liability company named BYD Uzbekistan Factory. This was a collaboration between Uzavtosanoat JSC and BYD Europe B.V., based in the Kingdom of the Netherlands.
Public outcry is escalating over Uzavtosanoat’s apparent avoidance of competition in the Uzbek car industry, a fear that was voiced two years ago and is now a reality. This fear, common among Uzbek monopolists, oligarchs, and bureaucrats, is not limited to any one sector and reveals their true nature.
The concerns raised at the start of the electric car production collaboration with Uzavtosanoat BYD have been confirmed. The company’s interpretation of “restriction of irregular imports” implies exclusive import rights for Uzavtosanoat and its affiliates. This has led to the cessation of $10,000 electric car imports from China and the selling of a $15,000 electric car for $30,000, exploiting Uzbek consumers. Dismissal of WTO or consumer protection causes as outdated rhetoric has further exacerbated public dismay.
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