Uzbekistan Proposes EV Loan Interest Subsidy Program
Uzbekistan has proposed subsidizing interest on loans for new electric vehicles under a draft government resolution now open for public consultation.
Uzbekistan is considering a state-backed initiative to make new electric vehicles more accessible through subsidized auto loans. A draft resolution from the Cabinet of Ministers outlining this proposal has been released for public feedback.
The proposed support mechanism would become active on August 1, 2026. It would apply to new electric vehicles with a purchase price not exceeding 1,000 basic calculation units. The maximum auto loan amount eligible for this subsidy is set at 300 million soums.
Under the plan, the government would cover a portion of the interest rate for the initial two years of the loan. Specifically, the subsidy would apply to any interest rate exceeding 16% per annum, with a maximum compensation of 8 percentage points. For instance, if a loan has a 24% annual interest rate, the government would subsidize 8 percentage points. If the rate is 20%, the subsidy would be 4 percentage points.
This program is exclusively for new M1-category electric vehicles that operate solely on electricity and do not have an internal combustion engine.
To be eligible, borrowers must satisfy the lending bank's criteria, have no outstanding loan arrears, and indicate their intent to utilize the state support program when applying for the loan.
The subsidy payments will be directed to the lending bank to offset a portion of the loan interest, rather than being disbursed to the borrower.
Subsidy payments could cease if the borrower misses loan payments for three consecutive months, repays the loan early, cancels the loan agreement, or provides inaccurate information during the application for state support.
Funding for the program in 2026 is expected to come from additional allocations from the national budget. From 2027 to 2030, the necessary funds would be incorporated into the state budget each year, based on the demand for this support.
The draft resolution is currently open for public consultation, and its terms may be modified before it is officially adopted.