Automobile Industry - The Times Of Central Asia

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Kazakhstan Sets New Record for New Car Sales in 2024

Kazakhstan set a new record for new car sales in 2024, with over 205,000 units sold, which is nearly 7,000 more than the previous year. This milestone was achieved despite a slowdown in buying activity during the middle of the year, followed by a sharp rebound in the final months. According to the Kazakhstan Automobile Union (KAO), official dealers sold 205,100 new cars in 2024. This figure represents a 3.2 percent increase from 2023 when 198,600 were sold, which was a record at the time. At the beginning of 2024, many experts believed matching the previous year’s results would be difficult due to market saturation. These doubts were reinforced when sales volumes declined during the spring and summer compared to the same months in 2023. However, starting in October, monthly sales consistently exceeded 20,000 units, and December closed the year with a record-setting 25,500 cars sold. “The whole of last year, despite some slowdown in the market at the beginning, passed under the sign of intensified competition and a lot of favorable offers from manufacturers and dealers. Unprecedented financing terms, including no down payment and no installments, were the result of coordinated work by the government, the Financial Market Regulatory and Development Agency, second-tier banks, and microfinance institutions. Excellent conditions for buyers have been developed, and the results have not been long in coming: the country's automobile market has set sales records for the second year in a row,” said KAO President Anar Makasheva. Kazakhstan’s top ten car brands saw significant changes in 2024. Hyundai maintained its leading position with 44,200 cars sold, although this represents a 5.4 percent decrease from the previous year. The brand, which manufactures vehicles locally in Almaty, retained a market share of over 21 percent. Chevrolet, which is also assembled domestically in Kostanai, ranked second with approximately 31,000 units sold. This figure marks a significant 32.5 percent decline from 2023. Kia placed third with 23,000 units sold, which is a 9.6 percent year-on-year decrease. In contrast, Chinese brands experienced notable growth. Chery secured fourth place with 14,800 cars sold, representing a 21.7 percent increase over the previous year. Jac — assembled in Kostanai — ranked fifth with 11,700 units sold, achieving an impressive 56.7 percent growth. Toyota, an imported brand, secured sixth place with 11,000 cars sold, reflecting a modest 2.7 percent increase compared to 2023. Haval, another Chinese brand, ranked seventh with approximately 11,000 units sold, representing a 45.3 percent increase. The top ten were rounded out by Jetour with 9,500 units sold, an increase of 141.9 percent; Changan with 8,500 units sold, an increase of 39.8 percent; and Geely with 8,300 units sold, an increase of 126.5 percent. Chinese brands now account for 39 percent of Kazakhstan’s automotive market. This is a significant increase from previous years and aligns with a global trend. In the electric vehicle segment, the Chinese brand Zeekr led the market, with official dealers selling 809 electric cars in 2024. However, cars with internal combustion engines remain the top...

Market economy Trade Automobile Industry Export/Import

Kazakhstan Expects Record Car Sales

Kazakhstan's automobile market continues to grow, with sales of new cars on track to match or exceed last year’s record. In 2023, Kazakh motorists purchased over 198,000 new vehicles, and experts predict similar or higher figures for 2024. According to the Kazakhstan Automobile Union (KAO), 20,984 passenger cars and commercial vehicles were sold in November 2024, a 10.7% increase compared to November 2023. Over the first 11 months of 2024, Kazakh dealers sold 179,628 new cars, surpassing the 175,100 sold during the same period last year. Despite earlier concerns of a potential market slump, industry experts remain optimistic. KAO head Anar Makasheva had cautioned that the 2023 record represented “inorganic growth” driven by pent-up demand. However, Artur Miskaryan, general director of the Agency for Monitoring and Analysis of the Automobile Market (AMAAR), believes the market’s positive trend will continue. “Kazakhstan may well repeat or even surpass last year’s record for fleet renewal, potentially reaching 200,000 new car sales,” Miskaryan stated. He acknowledged some fluctuations, noting that in certain months, sales fell below 2023 levels but were offset by stronger performance in other periods. Kazakhstan’s domestic car manufacturers, based in Kostanai and Almaty, are also close to replicating last year’s success. In 2023, locally produced vehicles accounted for over 70% of the 198,000 new cars sold - approximately 148,000 units. Miskaryan estimates that domestic production will maintain a similar share in 2024. As previously reported by the The Times of Central Asia, stricter regulations for importing foreign cars into Kazakhstan were introduced on December 1, 2024. However, experts anticipate that these changes will not significantly affect the market until spring 2025. Kazakhstan’s automobile sector continues to demonstrate resilience and robust growth, positioning itself for another record-breaking year in 2024.

Automobile Industry Economic Cooperation Government Industry Export/Import China

Uzbekistan Boosts Car Production and Expands Exports

Between January and October 2024, Uzbekistan produced 338,000 vehicles, generating $455 million in car exports, according to figures revealed during a government meeting chaired by President Shavkat Mirziyoyev on November 25. Next year, the country aims to manufacture 450,000 vehicles in 2025 and boost export revenues to $700 million. The automotive sector has become a cornerstone of Uzbekistan's industrial growth, accounting for 10 percent of the country’s total industrial output. Currently, the industry produces 1,400 types of automotive components and has achieved a 4 percent reduction in production costs. To strengthen domestic manufacturing further, the government plans to launch 63 projects worth $325 million, facilitating the production of an additional 700 types of automotive parts. Uzbekistan’s vehicle assembly incorporates major global brands, including Chevrolet (USA), as well as South Korean and Chinese manufacturers. The country’s commitment to innovation and green energy was underscored by the June opening of a BYD electric vehicle plant in Jizzakh, which marked a significant milestone for the industry. The new Jizzakh plant currently produces 50,000 electric vehicles annually during its first phase. Planned expansions include: Second phase: A $300 million investment to scale production to 200,000 electric vehicles per year. Third phase: A $500 million investment to increase capacity to 500,000 vehicles annually. These developments highlight Uzbekistan’s commitment to becoming a regional leader in electric vehicle production and innovation. The country’s automotive industry has demonstrated remarkable growth, fueled by strategic investments in local manufacturing and a focus on sustainable technologies. By prioritizing electric vehicles and expanding exports, Uzbekistan is positioning itself as a competitive player in the global automotive market.

production Afghanistan Export/Import Automobile Industry

Kazakhstan Considering Car Exports to Afghanistan

In October this year, during the Kazakh-Afghan forum, Kazakhstan's Deputy Prime Minister Serik Zhumangarin reported on Kabul's request to set up deliveries of cars manufactured in Kostanai and Almaty to Afghanistan. According to the Deputy Prime Minister's assessment, the first Kazakhstani cars may appear on the Afghan market as early as next year; automobile industry experts agree with him but note that the realism of this term will become apparent after at least several months of research. “I understand that Afghanistan already has money; its middle class is developing, so they asked to organize meetings with our car industry businesses to create car centers to sell old and new Kazakhstani cars. I have already contacted several people about this issue, and we are working on it now. I think it is realistic to start selling the first cars next year,” Zhumangarin said. At the same time, he emphasized that the most crucial issue in establishing such a project has already been resolved. In October, Kazakhstan's Zaman Bank opened a corresponding account at one of the largest banks in Afghanistan, Ghazanafar Bank. This means that Kazakhstani businesses can receive direct payments from Afghan buyers without the participation of financial institutions of Kyrgyzstan, Uzbekistan, and Gulf countries, which charge additional fees for intermediation. Thus, the issue of financial logistics - how the money for sold cars from Afghanistan will arrive in Kazakhstan - has been fundamentally solved, according to Artur Miskaryan, general director of the Agency for Monitoring and Analysis of the Automobile Market of Kazakhstan (AMAAR), and there are no problems with direct logistics - cars manufactured in Kostanai and Almaty can be transported to this country by rail. Kazakh grain companies have already established this route. In addition, this summer, at the first transport trade and export forum held in Aktau, representatives of Kazakhstan, Turkmenistan, and Afghanistan discussed the possibility of building a new railway line Turgundi - Herat - Kandahar - Spin-Buldak, which will run from the western border of Turkmenistan through Afghanistan to Pakistan and further to India. Kazakhstan is offered to join the construction of this logistic path, including withdrawing its vehicles to Afghanistan and the countries bordering it. So, logistic paths to Kabul, existing and potential, are acceptable for Kazakhstan's automobile industry. “From a purely technical point of view, companies of the Kazakhstani automobile industry are ready to supply equipment to all neighboring and nearby countries,” explained Miskaryan. "The issue of supplying products to one or another country largely depends on the terms of economic agreements of the Republic of Kazakhstan with other countries, as well as the policy of the head offices of brands whose models are assembled at our car plants: in the case of Russia, for example, Western head brands adhere to the sanctions restrictions on supplies. There is also the problem of customs and tariff policy of neighboring [sic] countries: in particular, Russia and Uzbekistan have recently directed their efforts to increase support for local producers.” Since Afghanistan has no automotive industry,...

Economic Cooperation Automotive Industry Economic Growth South Korea Automobile Industry

Car Multimedia System Plant Launched in Almaty

The opening ceremony of the Kazakhstan Mobility Engineering Plant took place on October 30 in Almaty, Kazakhstan’s largest city. The new production facility is part of Astana Motors, Kazakhstan’s major automobile distribution and manufacturing company. In April last year, Astana Motors signed a memorandum of cooperation with South Korea’s Motrex Co Ltd., receiving the right to produce multimedia devices in Kazakhstan using the Korean partner's technology. The plant was launched in September 2024, and the first batch of its audio and video multimedia systems has already been delivered to the Hyundai Trans Kazakhstan plant for installation on Tucson and Elantra cars. Speaking at the opening ceremony, Minister of Industry and Construction of Kazakhstan, Kanat Sharlapayev, emphasized that multimedia systems are high-precision production requiring first-class specialists' competencies in digital technologies. “Our key goal is to create a production cycle with a high share of [production] localization [inside Kazakhstan]. And we will make maximum use of domestic raw materials and components. That is why Kazakhstan Mobility Engineering is important for the country.” Motrex CEO Junseon Kim also stressed the importance of local production: "Our goal is to closely cooperate with our partners to increase local production of components and leadership in the assembly of multimedia devices. The partnership will allow us to respond quickly to local needs, create jobs, and support Kazakhstan's economic growth." The Kazakhstan Mobility Engineering plant is part of the Astana Motors Engineering Technopark, constructed in the Industrial Zone of Almaty to produce automobile components. The technopark will also open a car seat manufacturing plant, a rubber and plastic products manufacturing plant, and a logistics hub. Its products will be supplied to the Hyundai Trans Kazakhstan plant and other automobile plants in Kazakhstan. Astana Motors has also signed a memorandum with Sanico Electronics, a South Korean manufacturer, to obtain the right to produce motherboards and cases for multimedia systems. In other news, Kazakhstan’s national company, Kazakh Invest, and KIA Qazaqstan discussed projects to produce original South Korean auto components for KIA cars in Kazakhstan. The parties considered cooperating with South Korean companies SJG Sejong and Seoyon E-Hwa, the original manufacturers of seats, bumpers, mufflers, and other components for KIA cars. Representatives of the companies expressed interest in implementing investment projects in Kazakhstan, emphasizing the strategic importance of localizing the production of automotive components in the country. A full-cycle plant to produce KIA cars is currently under construction in Kazakhstan’s Kostanay. The new plant will cost about $200 million and have a production capacity of 70,000 vehicles annually. This project is KIA's first direct investment in a joint venture to construct a plant outside Korea. At a government meeting on October 29, Minister of Industry and Construction Sharlapayev said that from January to September 2024, Kazakhstan produced more than 82,000 cars.

Natural gas Economic Cooperation International Cooperation South Korea Automobile Industry Industry

Daewoo To Invest $730 Million in Turkmenistan

South Korean company Daewoo Engineering & Construction has won a tender to build a fertilizer plant in Turkmenistan. The project is estimated to cost a trillion won (about $730 million). According to the company, the new plant will be located in Turkmenabat, 450 km east of Ashgabat. It will have an annual capacity of 350,000 tons of phosphate fertilizer and 100,000 tons of ammonium sulfate, and will include additional auxiliary facilities. After the completion of the main contract, final data on the contract's value and implementation terms will be published. The company has stated that implementing the project will allow Daewoo E&C to strengthen its presence in Central Asia and expand its activities in the petrochemical and agricultural sectors, infrastructure, and urban projects. In the future, the company intends to offer environmentally friendly technological solutions to further cooperate with Turkmenistan. Daewoo E&C noted that winning the tender was possible thanks to the support of the South Korean government, including during the official visit of President Yun Seok Yeol to Turkmenistan in June. The company's Chairman, Jeong Won-ju, also met with the Chairman of the People's Council of Turkmenistan, Gurbanguly Berdimuhamedov, in November 2022 during his visit to South Korea. The two sides signed a memorandum of understanding, cementing an agreement on close cooperation. Jeong Won-ju has visited Turkmenistan three times since then, which helped strengthen ties and successfully conclude negotiations. Daewoo E&C is aiming to become a leader in the global EPC (engineering, procurement, and construction) market. “We strive to participate in projects that contribute to a sustainable future,” a company representative stated. Turkmenistan is implementing several major projects with the participation of South Korean companies. Hyundai Engineering has agreed with state-owned Turkmengas to expand the Galkynysh gas field. This project includes the construction of a fourth gas desulfurization facility, making it the largest in the country's history. Korean companies have also been actively constructing and developing an oil refinery in Kiyanly. Projects to create “smart cities” are also being discussed.