Kazakhstan to Increase Production of Auto Components

@Istock

A conference was recently held in Astana to discuss the localization of automotive components production in Kazakhstan. Kazakh and foreign investors are currently channeling more than $900m to organize manufacturing of auto components in the country, to make vehicles more affordable for drivers. 

At the conference, Shyngys Suyunbaev, deputy chairman of the Industry Committee at the Ministry of Industry and Construction, said that automakers in Kazakhstan are now required to gradually increase the production of vehicles using the Completely Knocked Down (CKD) method from 20% of the total number of vehicles produced in 2024 up to 50% in 2027. 

“To deepen the localization and development of CKD production of vehicles, the development of the automotive component base is required. Currently, projects are being implemented in Kazakhstan for the production of exhaust systems, bumpers, sandwich panels, polyurethane mats and plastic parts, multimedia, seats, wheels, tires, cylinder heads, mechanical gearboxes, and batteries,” Suyunbaev said.

The president of the Kazakhstan Automobile Union, Anar Makasheva, commented that the industry has significantly increased production rates and domestically-assembled vehicles are now more popular among the population. According to Ms Makasheva, in 2023 the production of passenger and commercial vehicles in Kazakhstan increased by 30%, and sales of vehicles increased by more than 60%. The share of domestically assembled cars in the market was 70.7% in 2023.

“Localization of auto components production will be the starting point for the transition of domestic automotive enterprises to a more complex level of production,” Makasheva added.

In 2023, 148,900 motor vehicles were manufactured in Kazakhstan. Local automakers assemble passenger and commercial vehicles by brands including Chevrolet, Lada, Kia, Renault, JAC, Hyundai, Golden Dragon, Shacman, Dongfeng, Daewoo, Yutong, and Iveco.