BAKU, Azerbaijan, August 27. Uzbekistan has
launched a $170 million electric bus manufacturing project in the
Yazyavan district of the Fergana region in partnership with Chinese
companies Xiang Yang Tenglong Automobile and GIG Investments.
This was reflected in the statement by the Fergana Regional
Administration, following the ceremony, which was attended by
Governor Khayrullo Bozorov, entrepreneurs, investors, community
representatives, and veterans.
According to the Regional Administration, the facility will be
built on 10 hectares in the Izhodkor mahalla within a special
industrial zone. It is expected to have an annual production
capacity of 700 electric buses, with the plant scheduled to begin
operations in December 2027.
Speaking at the event, Bozorov stated that the project reflected
Uzbekistan's broader efforts to expand the use of alternative
energy sources and develop modern, environmentally friendly
transportation.
"The production of modern and environmentally friendly vehicles
is one of the requirements of the present day," Bozorov said,
according to the regional administration.
The project will initially focus on electric buses, while the
second stage is expected to include the production of electric
trucks. The vehicles will be supplied to Uzbekistan's domestic
market and exported to foreign countries.
Trend's analysis
shows that the project could become an important addition to
Fergana's industrial base while also strengthening Uzbekistan's
ambitions to develop domestic electric vehicle manufacturing. The
planned annual capacity of 700 buses creates an opportunity to
combine domestic demand with export-oriented production,
particularly if the plant develops competitive pricing and regional
supply chains.
Moreover, Trend's
calculations show that the $170 million investment corresponds to
approximately $243,000 in planned investment per unit of annual
production capacity, based on the stated capacity of 700 electric
buses per year. If the facility operates at full capacity, it could
produce up to 3,500 buses over five years, although actual output
will depend on the commissioning schedule and subsequent
utilization rates.
The project is also expected to create new jobs and increase the
industrial potential of the Fergana region. Its location within a
special industrial zone could facilitate access to infrastructure
and supporting industries, while cooperation with Chinese companies
could provide technology, production expertise and access to
established electric vehicle supply chains.
The launch comes as Uzbekistan seeks to expand manufacturing
with higher technological content and attract foreign investment
into sectors linked to the country's energy transition. Moving from
electric buses to electric trucks in a subsequent phase could
further broaden the project's industrial impact.
Construction officially began following a ceremony in which
participants laid the foundation stone for the future plant.
In Trend's
assessment, the project's significance will depend on how quickly
Uzbekistan can build local supply chains and reach the planned
production capacity. If implemented on schedule, the facility could
strengthen Fergana's manufacturing sector, support the development
of Uzbekistan's electric transport industry, and create a new
platform for exporting electric vehicles to regional markets.
