Automobile Industry - The Times Of Central Asia

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Automobile Industry

Kazakhstan Produced Over 171,000 Vehicles in 2025, Setting Industry Record

Kazakhstan’s automotive industry achieved record production levels in 2025, manufacturing more than 171,000 vehicles, an increase of nearly 18% compared to 2024. According to the Kazakhstan Automobile Union (KAU), a total of 171,144 vehicles, including passenger cars, buses, and trucks, were produced in 2025, with an estimated value exceeding $4.5 billion. By contrast, 145,290 vehicles were produced in 2024, valued at approximately $3.7 billion. “Last year's results were the best in the history of Kazakhstan’s automotive industry. By the end of 2025, the sector accounted for about 8% of the total manufacturing industry and held a dominant 41.7% share within the mechanical engineering sector,” the KAU stated. Investments in the sector topped $224 million in 2025, funding modernization of existing facilities, procurement of new equipment, and the launch of component manufacturing enterprises. New production facilities launched in Almaty and Kostanay, Astana Motors Manufacturing Kazakhstan and Kia Qazaqstan, contributed to job growth. Employment in the sector rose to 11,153 workers. Passenger cars continued to dominate production, with output rising 19% to 158,944 units in 2025. Commercial vehicle production (trucks and buses) reached 12,200 units, up 8% from the previous year. The Allur plant in Kostanay (SaryarkaAvtoProm) produced 92,100 passenger cars and trucks, up 1.8% year-on-year. The Kia Qazaqstan plant, which began operations in Kostanay in late 2025, produced 2,885 vehicles in just three months. Hyundai Trans Kazakhstan in Almaty increased production by 14.6%, manufacturing 52,040 passenger cars. Meanwhile, the new Astana Motors Manufacturing Kazakhstan plant in Almaty produced 15,180 cars within four months of launch. In Semey, SemAZ manufactured 3,728 commercial vehicles, down 5.3% from the previous year. In the town of Saran in Karaganda region, QazTehna boosted output by 69.1%, producing 2,665 commercial vehicles. KAMAZ Engineering in Kokshetau produced 1,426 trucks, a 6.4% decline. Hyundai Trans Almaty produced 754 commercial vehicles, and Daewoo Bus Kazakhstan in Semey assembled 341 buses. Uralskagromash produced 25 units of specialized equipment. “We are seeing growing confidence among auto component manufacturers, an influx of new investment, and the strengthening of Kazakh-made cars in the domestic market. Looking ahead, the priorities will be increasing localization and expanding the production base,” said Anar Makasheva, president of the QAO. As previously reported by The Times of Central Asia, the production record was already surpassed by December 1, 2025.

Automobile Industry

Kazakhstan Sets New Record for Car Sales

Kazakhstan's car market set a new record in the first 11 months of 2025, with more than 207,500 new vehicles sold, surpassing the previous annual record of 205,000 units set in 2024. According to the Kazakhstan Automobile Union (KAS), 25,804 passenger and commercial vehicles were sold in November 2025 alone, marking a 22.7% year-on-year increase. This figure represents the highest monthly sales volume in the history of official car retail in the country. Between January and November 2025, dealerships sold a total of 207,616 new vehicles, 15.6% more than during the same period in 2024. KAS President Anar Makasheva noted that the market has already exceeded last year's total sales despite the traditionally active pre-New Year period still ahead. She added that dealers are expanding financial offerings and launching special promotions, as December is typically the most favorable month for car purchases. A further increase is expected by year-end. Hyundai was the top-selling brand in Kazakhstan during the reporting period, with 45,220 units sold. Chevrolet followed with 33,486, and Kia ranked third with 21,481. Chinese manufacturers dominated the rest of the top ten: Jetour (13,000), Chery (12,500), Haval (10,400), and Changan (10,100). Toyota came in eighth with 10,000 vehicles sold, followed by Geely (9,000) and Jac (8,700). Among the most popular models in November were the Chevrolet Cobalt (7,100), Hyundai Tucson (1,900), and Kia Sportage (1,300). As of December 1, 2025, Kazakhstan had 5,843,358 registered vehicles, according to government statistics. The majority, 4,898,203, were category B passenger cars. In comparison, 6,786,876 vehicles were registered as of September 1. The Ministry of Internal Affairs attributed the discrepancy of nearly 1 million vehicles to a database update that eliminated duplicates, corrected technical errors, and verified first-time registrations. Earlier this year, The Times of Central Asia reported that Kazakhstani car manufacturers saw a nearly 17% profit increase in the first half of 2025 compared to the same period in 2024.

Automobile Industry

KIA Qazaqstan Car Factory Launched in Kostanay

A new car assembly plant owned by KIA Motors Corporation has officially launched operations in northern Kazakhstan. Once fully operational, the KIA Qazaqstan facility will be capable of producing up to 70,000 vehicles annually. President Kassym-Jomart Tokayev inaugurated the plant via teleconference. The decision to construct the plant in the Kostanay region was made in 2023. Located in the Kostanay industrial zone, the facility occupies nearly 63 hectares. More than $245 million has been invested in the project, which has created 1,500 jobs. The primary markets for the vehicles will include Kazakhstan, other Central Asian countries, and member states of the Eurasian Economic Union. Speaking during the Astana-Kostanay teleconference, President Tokayev highlighted the strategic importance of the new plant to Kazakhstan’s machine-building sector. He noted that KIA Sportage production had already begun in Kostanay two years earlier, and that this new phase, launched under an agreement with KIA Corporation, marks the start of full-scale vehicle manufacturing. Tokayev thanked KIA Corporation President Ho-Sung Song and the company for their cooperation, emphasizing the value of high localization in production. He stressed that increasing the share of domestically sourced components is vital for Kazakhstan’s industrial development. Experts estimate that each job at the plant will create up to five or six additional jobs in logistics, services, and infrastructure. “This is not just a linear expansion, but a major step toward creating a full-fledged industrial cluster, where small and medium-sized enterprises will have real opportunities to grow,” Tokayev said. “This approach will strengthen the industrial capacity not only of the Kostanay region, but of the entire country. I am confident that the KIA plant will become a new growth point for Kazakhstan’s automotive industry.” He added that the plant's launch will support the renewal of Kazakhstan’s vehicle fleet and contribute to improved road safety. In 2024, the machine-building sector attracted over $540 million in investment, 2.5 times more than in 2023. Since the beginning of 2025, $331 million has already been invested in the industry. Last year, Kazakhstan produced over 145,000 vehicles, with assembly facilities operating in Astana, Almaty, Semey, Uralsk, Kokshetau, Kostanay, and Saran. The sector currently employs more than 10,000 people. “The launch of KIA Qazaqstan will give a powerful boost to the technological modernization of the entire industry. In the future, the company will be able to manufacture new car models and enter foreign markets with products that meet international standards. Kazakhstan is ready to contribute to the development of the global automotive industry,” Tokayev concluded. As previously reported by The Times of Central Asia, between January and July 2025, Kazakhstan produced 83,200 vehicles worth $21.4 billion, an increase of 16.7% compared to the same period last year.

Automobile Industry

Automotive Shift in Central Asia: China Edges Out Russia

In the 2020s, Central Asia has emerged as an increasingly attractive market for the automotive industry. A combination of investment inflows, technological development, and improved logistics, much of it initiated by China, has fueled this transformation. Since the onset of the COVID-19 pandemic, China has rapidly expanded its influence in the region’s automotive sector and is becoming the dominant external supplier in import-reliant markets, even in countries with domestic manufacturing capabilities. Manufacturing Hubs and Import Markets The Central Asian automotive landscape reflects the region’s economic diversity. Uzbekistan and Kazakhstan serve as the main manufacturing hubs, while Kyrgyzstan, Tajikistan, and Turkmenistan rely heavily on imports. By the end of 2024, while the global automotive sector faced a slowdown, Uzbekistan recorded modest growth in car production, up 0.8% year-on-year. In contrast, Kazakhstan saw a 1.6% decrease. During the first seven months of 2025, Uzbekistan produced 212,200 passenger vehicles, a 3.5% increase compared to the same period in 2024. Truck production rose sharply by 28%, from 1,800 to 2,300 units. With a population of approximately 37 million, Uzbekistan remains the region’s industrial center. The state-owned UzAuto Motors, formerly GM Uzbekistan, dominates more than 90% of the domestic passenger car market. Models such as the Chevrolet Cobalt, Nexia, and Tracker are built on General Motors platforms and produced at the main plant in Asaka, which has a capacity of 280,000 vehicles per year. Some of this output is exported to Russia, Azerbaijan, and Georgia. In a bid to stay competitive with Chinese brands, Uzbekistan launched a joint venture with BYD in 2023 and announced the construction of a $1.5 billion electric vehicle (EV) plant in the Ferghana region with Chinese support. Kazakhstan’s key market players include Allur and Hyundai Trans Kazakhstan. Allur’s Kostanay plant produces up to 125,000 Kia, Chevrolet, Skoda, JAC, Jetour, and Hongqi vehicles annually, and accounts for 61% of the national output. Hyundai Trans Kazakhstan in Almaty has a capacity of 50,000 units, covering 31% of production. Two new car plants are expected to open in 2025. The first, a $200 million investment by Kia, will be located in the Kostanay region and marks the company’s first Central Asian plant. With a planned capacity of 70,000 vehicles per year, the move underscores Kia’s long-term commitment to Kazakhstan. “We are excited about the promising opportunities opening up in the Kazakh market. Kazakhstan's economy is developing dynamically and on a large scale. We see great potential for our business in this market,” said Kia President and CEO Ho Sung Song. The second plant, in Almaty, will assemble Chinese brands with a target of 90,000 vehicles annually. Rather than compete with Chinese imports, Kazakhstan has opted to localize production in partnership with Chinese manufacturers. Import-Dependent Markets and China’s Tailored Approach While Kyrgyzstan and Tajikistan host minor assembly operations, primarily with Chinese partners, their automotive fleets, along with Turkmenistan’s, are largely replenished through imports. Since 2020, shifts in global logistics have transformed China from an alternative supplier into the dominant source of vehicles in these...

Automobile Industry

China’s “Used” Car Exports to Central Asia Raise Questions Over Trade Practices

China has recently surpassed Japan to become the world’s largest automobile exporter. Yet behind this headline lies a controversial trade tactic: the mass export of brand-new vehicles categorized as “used.” Since 2019, this strategy has become a key component of China’s vehicle trade with regions including Central Asia, Russia, and the Middle East. A Reuters investigation has revealed that these so-called “zero-mileage used cars” are new vehicles that are briefly registered in China to obtain domestic license plates, then exported abroad without being driven. This approach allows automakers to classify the cars as “sold,” enabling local governments to boost export figures and manufacturers to reduce unsold inventory from an increasingly saturated domestic market. “This is the outcome of an almost four-year price war that has made companies desperate to book any sales possible,” said Tu Le, founder of the Michigan-based consultancy Sino Auto Insights. Local Governments Fuel the Export Boom At least 20 provincial and municipal governments in China, including major industrial hubs like Guangdong and Sichuan, actively support this model. Local incentives include issuing additional export licenses, offering tax breaks, investing in export-related infrastructure, and providing free warehouse space near border zones These measures align with national macroeconomic objectives and offer local officials a tool to demonstrate economic performance through export statistics. Central Asia: A Strategic Destination Central Asia has emerged as one of the primary destinations for these vehicles. Many of the exported models are gasoline-powered, as China pivots to electric vehicles (EVs) domestically. Nonetheless, EVs, often heavily subsidized at the production stage, are also part of the export mix. William Ng, international director at Chongqing-based Huanyu Auto, reported strong profits in 2022-2023. “We were able to earn 10,000 yuan ($1,400) in profit on an electric sedan purchased for 40,000 yuan by selling it in Central Asia,” he told Reuters. However, Ng warned that the market is becoming oversaturated. “Small dealers and even livestreamers are getting involved. They used to sell wine or vases, now they’re selling cars. This is chaos.” Industry Pushback and Regulatory Scrutiny Despite short-term export gains, several Chinese automotive leaders have expressed unease. Zhu Huarong, chairman of Chang'an Auto, warned that the practice could tarnish the global image of Chinese carmakers. Xing Lei, founder of AutoXing, echoed this sentiment. “How many [sales] are real or inflated? No one knows,” he said, pointing to a growing distrust of industry data. Importing nations are starting to react. Russia has banned zero-mileage used cars from brands that already have authorized dealerships in the country. Jordan and several Middle Eastern countries have tightened regulations, redefining what qualifies as a “used” vehicle to close loopholes. These moves reflect mounting concern over what some consider a “dumping” strategy, flooding foreign markets with low-cost or subsidized vehicles that disrupt local competition and undercut domestic dealers. Why the Practice Continues China’s centrally managed economy allows for considerable leeway in how provinces achieve growth targets. Export volume, employment figures, and retail sales data are often tied to the promotion prospects of local officials....

Automobile Industry

Chevrolet vs China: The Battle for the Future of Uzbekistan’s Auto Industry

ANDIJAN -- Spend long enough in Uzbekistan and you become adept at reading numberplates. While in Paris or Los Angeles, you will generally identify your taxi by its color and its manufacturer; try doing that in Uzbekistan, and you run into a problem: for the past two decades or so, the color and manufacturer have invariably been White and Chevrolet. “Yep, it’s true,” laughed Alisher, as I remarked on this when he collected me from Andijan train station. “90% of the cars are Chevrolets, and 80% of them are white.” But this era of monochrome monopoly may be coming to an end. With the electric vehicle (EV) revolution sweeping the world, Chinese companies have Chevrolet’s kingdom in their sights. A Levy for the Chevy Islam Karimov, Uzbekistan’s first president, was alone among the leaders of former Soviet republics in being a trained economist. Schooled in the planned economy, his powerful state acquired control over key industries and sought to make Uzbekistan self-reliant. It did a deal with South Korean conglomerate Daewoo to open its first factory in Uzbekistan in 1996, while slapping huge tariffs on all cars coming into the country from abroad. Daewoo, caught up in the Asian Financial Crisis in 1998, sold its auto arm to General Motors in 2002. The Detroit giant saw little wrong with the deal they had inherited in Uzbekistan, and so continued to produce Daewoo cars but now under their Chevrolet branding. The partnership transformed streets all across the country, with practically the only other cars to be seen on the roads being old Ladas from the Soviet period. [caption id="attachment_29761" align="aligncenter" width="1600"] A Kia hoarding above, naught but Chevrolet's below; image: Joe Luc Barnes[/caption] This lack of choice nevertheless provided jobs and an industrial base for the country’s auto industry. “I am very proud that Uzbekistan has built such an industry,” said Aziz Shukurov, CEO of A Group, a chain of car dealerships and owner of the nation’s largest network of service stations. “Today, more than one hundred companies operate in the local automotive industry producing parts for the vehicles; a lot of technology has been transferred over the years with tens of thousands of people employed. To my mind, a strong local automotive industry is a substantial asset for any country.” Meeting Mr. Market After Karimov died in 2016, his successor, Shavkat Mirziyoyev, began to embrace the free market. Close to a decade later, Tashkent throughfares are home to ever more foreign brands. Most prominent are South Korea’s Kia and Hyundai and China’s BYD and Changan. “The new president started opening up the country from 2017, giving access to foreign institutions and companies to the Uzbekistan market,” said Farkhodjon Israilov, an expert who specializes in attracting foreign investment into the country. In 2019, the government removed import duties and excise taxes on EVs. Given the growing popularity of EVs since then, the state-owned UzAuto Motors partnered with BYD to open one of only two operational production facilities outside China – the...