Foreign vehicle sales in Uzbekistan drop over 50% in a month

The Center for Economic Research and Reforms has presented an analysis of Uzbekistan’s automotive market for February.

According to the analysis, activity in both primary and secondary automotive markets showed an average decline last month.

While sales of new locally manufactured light vehicles remained stable, sales of foreign-manufactured vehicles dropped by more than half.

In the electric vehicle segment, despite a decrease in activity by the end of the month, growth is observed when compared to the previous year.

Primary market

The light vehicle market is experiencing an overall decline in sales, primarily driven by reduced activity in the foreign vehicle segment.

In February, light vehicle sales fell by 14.5% compared to the previous month, totaling 67,200 units.

During the month, sales of new locally produced vehicles remained nearly unchanged at 21,700 units, while sales in the new foreign vehicle segment decreased by more than half.

Secondary market

Activity in the secondary market for light vehicles also declined.

In February, 43,300 vehicles were bought and sold, a 16% drop compared to January of this year.

Electric vehicle market

The segment for new light electric vehicles shows signs of declining activity. In February, sales amounted to 2,900 electric vehicles, down 11% from the previous month.

However, on a year-over-year basis — compared to February 2024 — activity has more than doubled.

Imports of light vehicles shrink

According to data from the Customs Committee, vehicle imports in January and February shrank nearly fourfold compared to the same period last year, dropping from 17,396 units to 4,369 units.

Imports of gasoline-powered vehicles fell from 12,233 to 2,745 units (a 4.5-fold decrease), electric vehicles from 3,489 to 1,555 units (a 2.3-fold decrease), and hybrid vehicles from 1,674 to just 69 units (a 24-fold decrease).

The reduction in imports and the decline in market activity are occurring against the backdrop of non-tariff restrictions.

Since November 1, 2024, imported vehicles have been required to undergo technical testing at a testing ground in Piskent rather than at customs facilities. The current capacity of this auto testing site, which is several times lower than actual demand, may be contributing to the sharp decline in import volumes.

Additionally, electromagnetic compatibility testing for vehicles was introduced in November.

As a reminder, starting May 1, 2025, the recycling fee for electric vehicles will increase significantly. For electric vehicles manufactured less than three years ago, the fee will be set at 120 times the Base Calculation Unit (BCU), equivalent to 45 million UZS — four times higher than the current fee of 30 BCU (11.25 million UZS).

For electric vehicles over three years old, the recycling fee will be 210 times the BCU, or 78.75 million UZS — 2.3 times higher than the current fee of 90 BCU (33.75 million UZS).