Automobile manufacturing on the rise in Kazakhstan

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NUR-SULTAN (TCA) — In 2018 Kazakhstan manufactured more than 32 thousand motor vehicles, Vice Minister of Industry and Infrastructure Development Amaniyaz Yerzhanov told a press conference on July 10, the official website of the Prime Minister of Kazakhstan reported.

“The development of the national automotive industry has a multiplier effect on other sectors of the economy, it creates new jobs, so by now the number of jobs in the sector has reached about 2 thousand people, and in related industries the number of jobs reaches 7 thousand,” said Yerzhanov.

In the first 5 months of 2019, 16,921 vehicles worth 114.7 billion tenge were produced. Production of passenger cars increased by 41.5% (from 11,118 to 15,733), buses — by 3.2 times (from 126 to 404), trucks — by 35% (from 367 to 495), and trailers and semi-trailers — by 35% (from 200 to 270).

To date, such large car and truck manufacturers as SaryarkaAvtoProm LLP, Asia Avto JSC, KAMAZ-Engineering JSC, and Hyundai Trans Auto LLP operate in Kazakhstan. There is cooperation with world leaders such as JAC, Ravon, IVECO, GM, Skoda, Peugeot, Kia, Hyundai, Daewoo, Renault–Nissan–AVTOVAZ. As a result, Kazakhstan has established production facilities for assembling virtually all types of motor vehicles.

“The reason for the growth in automotive production is the restoration of market demand, the opening of export markets (329 cars were exported in 2018, 524 cars were exported in 5 months of 2019), as well as the program of preferential car loans from the state and leasing buses as part of the bus fleet renewal program which together had a positive effect on the development of the automotive sector,” Yerzhanov said.

In general, the state has allocated 50 billion tenge since the start of the program of preferential car loans and leasing financing.

In 2018, a program of bus leasing was launched as part of the support of domestic manufacturers.

As of June 1, 2019, 13.3 billion tenge was spent, 4 projects were financed to upgrade the bus fleet in the cities of Atyrau, Semey, Shymkent, and Pavlodar and 571 buses were sold.

“For the future development of the automotive industry, it is important to concentrate on large-scale production by launching additional projects. The access to the large-scale production of cars will contribute to the creation in Kazakhstan of its own automotive component base. In April 2019, a program of joint actions was adopted between the Ministry of Industry and Infrastructure Development of Kazakhstan and the Ministry of Industry and Trade of the Russian Federation in the development of industrial cooperation. Under this program, projects are envisaged for the production of equipment and components for KAMAZ vehicles, for the production of Hyundai vehicles and components for them, for construction of a full-cycle car factory JSC Asia Auto Kazakhstan,” the vice minister said.

He also stressed that Kazakhstan seeks to comply with world trends and therefore plans to manufacture electric vehicles in the country. Today domestic automotive industry enterprises are engaged in a detailed study of the process of creating electric vehicles. As part of this trend in Kazakhstan, the first types of new cars have been tested.

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Times of Central Asia