Kazakhstan’s automobile industry on way to recovery

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ASTANA (TCA) — In the first half of this year, Kazakhstan’s automobile industry contributed 23.1 billion tenge to the country’s GDP (manufacture of motor vehicles, trailers and semi-trailers), which significantly exceeded the performance of several other sectors of the manufacturing industry, the Atameken National Chamber of Entrepreneurs of Kazakhstan reported with reference to the Ministry of Investment and Development of Kazakhstan.

“The contribution of the automobile industry to GDP surpassed the results of the paper industry (20.3 billion KZT), production of pharmaceutical products (18.7 billion KZT), textile industry (18.3 billion KZT), electronics manufacturing (17.2 billion KZT), furniture manufacture (12.2 billion KZT), and wood industry (10.6 billion KZT),” said the ministry spokesman Kaysar Zhumabayuly.

In his words, the nearest plans of the domestic automobile factories allow to forecast further recovery of the industry in the second half of this year with the support of the state playing a significant role.

The ministry stressed that the domestic auto industry was included in the priorities of the second five-year plan of industrialization. During the first phase of the industrialization program, the auto industry has proved to be #1 industry in terms of growth as the production of vehicles in the country increased 4.8 times. “One of the objectives of the program for the enterprises of the industry in 2019 is to increase its localization level to 50%, create a components industry, increase the number of jobs 3.5 times, and get access to export markets,” said Zhumabayuly.

The Ministry also reported that some 6.7 million Kazakhstan citizens were able to buy affordable cars under the program of preferential car loans. Buyers can choose from among 62 models of cars of domestic assembly and buy them through loans at the nominal rate of 4%. The state program of preferential auto loans was launched in April 2015.

Sergey Kwan

TCA