Head of CCI advocates for import duties on electric cars

SOCIETY 16:14 / 02.08.2024 583

As previously reported, ADM Jizzakh CEO Doniyor Davletiyarov proposed reintroducing import duties on electric vehicles.

At a roundtable for exporters on August 1, the head of the Chamber of Commerce and Industry (CCI) Davron Vakhabov suggested considering the reintroduction of duties. This step will help local manufacturers, he noted.

"Every entrepreneur adopts their own standard and launches the production of an additional element that meets it. This is explained by the fact that we have production capabilities," Vakhabov said.

The head of the CCI referred to the experience of other countries that have introduced duties on imported electric cars: in the EU, the rate is 38.1%, in Turkey — 50%, in Brazil — 10%, increasing to 35% by 2026. In the US, the rate reaches 102.5% in the absence of an official dealer.

After Turkey introduced duties, BYD announced the construction of a plant in the country worth $1 billion, Vakhabov noted. In his opinion, Uzbekistan could similarly strengthen its auto industry and foster a layer of skilled specialists.

"It's not about jobs or monopoly," Vakhabov added. "Supporting local manufacturers doesn't mean only selling cars from local producers."

The CCI notes that zero duty encourages the import of cars without quality guarantees. According to Alixpartners, by 2030, less than 15% of the 137 Chinese electric car manufacturers will remain in operation — indicating potential maintenance issues for local car owners.

Additionally, Vakhabov touched on the issue of recycling used batteries. By introducing duties on electric vehicles, Uzbekistan should create funds to finance battery recycling projects.

"I fully support the issue raised by the entrepreneur at the previous meeting," concluded the head of the CCI. "If the industry develops, thousands of manufacturers will be stimulated."

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