Uzbekistan’s sharp increase in recycling fees for imported electric vehicles signals a shift toward local production and battery recycling, but consumers and dealers are feeling the strain.

Uzbekistan has significantly increased recycling fees on imported electric vehicles, a move that took effect on May 1, 2025. Under the new regulation, car importers are now required to pay between $3500 and $6200 per vehicle - nearly a fourfold increase from previous rates. The measure, which does not apply to gasoline or hybrid vehicles, has sparked strong reactions from private dealerships and consumers.

Previously, registering an imported electric vehicle under three years old cost around  $900. That figure has now jumped to approximately $3500, while older EVs face a fee of up to $6100. According to officials, the revenue generated will be used to fund the development of a national battery recycling industry, though specific details about the allocation of the funds have not been disclosed.

The updated regulation also introduces stricter procedures for registering imported EVs. Every vehicle must now undergo certification at a test facility near Tashkent, further increasing both the time and cost required to bring an electric car into the country.

Gasoline-powered vehicles and hybrids remain unaffected by the changes. Recycling fees for these categories continue to follow the 2020 structure, which varies based on engine size and production year. Hybrids, despite incorporating electric powertrains, are also exempt from the revised EV tariffs.

The new policy arrives amid a surge in demand for electric vehicles across Uzbekistan. In 2024, the country imported over 41500 electric and hybrid vehicles, outpacing the nearly 33000 internal combustion engine vehicles imported during the same period. Chinese manufacturers dominated the market, accounting for 99.5% of all EV and hybrid imports, with brands such as BYD, Changan, and Deepal leading the charge, alongside global players like Tesla.

Private auto dealers have expressed concern that the higher fees will make electric vehicles unaffordable for many, effectively reclassifying them as premium products. Industry observers note that Uzbekistan’s EV market remains limited in variety, and many consumers opt for Chinese models primarily because of their affordability and feature sets.

To offset the anticipated drop in imports, the Uzbek government plans to scale up domestic production. Local factories are expected to assemble over 10000 electric vehicles this year, aided by incentives including an exemption from the recycling fee until 2030. This exemption gives domestic producers a key advantage, allowing them to keep prices competitive. For instance, Chinese automaker BYD, which has established localized production in Uzbekistan, can continue offering electric models without passing the fee on to consumers.

In contrast, Kazakhstan has yet to implement a recycling fee for electric vehicles. The country continues to see a rise in imports of Chinese-made EVs, with more than 22000 entering the market in 2024. While Kazakhstan’s Ministry of Ecology has acknowledged the challenges associated with recycling lithium-ion batteries, it has not introduced any formal tariffs. Officials have noted that other countries in the region, including Uzbekistan, are moving ahead with such policies.

In a related development, Uzbek President Shavkat Mirziyoyev has directed government agencies to prioritize the use of domestically assembled vehicles for official purposes. Brands such as Chevrolet, Kia, BYD, and Chery are expected to replace imported models in the state fleet, reinforcing the country’s strategy to promote local manufacturing.

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