President orders reduction of car loan rates

Car loan interest rates will be reduced and lending volumes increased to stimulate demand for locally produced vehicles. The instruction was given by President Shavkat Mirziyoyev on February 13 during a meeting on ensuring high economic growth across sectors and regions.

Uzbekistan currently has four major enterprises with a combined annual production capacity of 650,000 vehicles. This year, it is planned to begin producing 763 additional components in cooperation with more than 300 local companies. The total number of vehicles produced is expected to reach 510,000.

To boost public demand for locally manufactured cars, officials were instructed to lower car loan interest rates and expand financing volumes.

Demand is also growing among farmers for agricultural machinery such as orchard tractors, planters, harvesters, and potato diggers. It was noted that if the Chirchiq cluster operates at full capacity and produces affordable agricultural equipment, and leasing companies offer convenient financial instruments, farmers could purchase at least 15,000 units of machinery annually.

Officials in the automotive industry were instructed to reassess this year’s production program to ensure 10.5 percent growth, taking into account all available opportunities.

It was previously announced at the same meeting that Uzbekistan’s industrial value-added share had increased from 40.7 percent to 43 percent over the past three years.