Automotive Industry - The Times Of Central Asia

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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.

Automotive Industry

Kazakhstan to Start Producing Cars for Chinese Brand KAIYI

The Kazakh automotive company Orbis Manufacturing plans to build a full-cycle plant in Almaty's industrial zone to manufacture cars under the Chinese brand KAIYI. According to Orbis's press service, a subsidiary of Orbis Kazakhstan signed a memorandum of cooperation with China's Yibin Kaiyi Automobile Co. at the second Forum of Kazakh Exporters in Astana. "We plan to invest about 72 billion tenge (~$160 million) in organizing the production of high-tech cars of leading Chinese brands," commented the president of Orbis Kazakhstan, Sukhrab Mahmudov. Orbis Kazakhstan emphasized that design and estimate documentation (DED) for the production line is currently being finalized. The plant's production capacity is planned at 80,00 vehicles per year. It will initially create 1,500 jobs. In May 2023 Orbis Kazakhstan signed an agreement with EXEED International, a premium brand of the Chinese automaker Chery, on the production of cars under the EXEED brand in Kazakhstan.

Kyrgyzstan China Automotive Industry

Chinese Company to Build an Automobile Plant in Kyrgyzstan

Kyrgyzstan’s President Sadyr Japarov attended a ceremony on February 28th to launch the construction of an automotive assembly plant in the country’s northern Chui region. The plant which will have the capacity to produce over 80,000 vehicles -electric, domestic, and commercial – is due to open in August this year. A joint venture between the Kyrgyz government, local enterprises, and the China Hubei Zhuoyue Group, the first stage of the project has attracted investment of $115 million. In his speech, President Japarov expressed the government’s confidence that the project will provide significant impetus to the development of the automotive industry in Kyrgyzstan and in turn, the creation of new jobs. The Chinese Ambassador to Kyrgyzstan Du Dewen attributed the instigation of the project to a strategic partnership between the two countries. Thanking the Kyrgyz president for his personal attention and support, she expressed her hope that this project will exemplify a deepening interaction between Kyrgyzstan and China.

Automotive Industry

Astana Motors To Build New Plant In Almaty

On January 25th Kazakhstan's president Kassym-Jomart Tokayev received the founder of Astana Motors, Nurlan Smagulov, who informed him about his company’s plans for the automotive industry in Kazakhstan, the president’s press office reported. Mr Smagulov reported that in 2023 Hyundai Trans Kazakhstan and Hyundai Trans Almaty, subsidiaries of Astana Motors, manufactured 48,857 passenger cars and 981 commercial vehicles. Mr Smagulov told the president that the construction of the Astana Motors Manufacturing Kazakhstan multi-brand plant in Almaty, for the production of China’s Chery, GWM (Haval), and Changan vehicles, is scheduled to be completed in February 2025. The plant's capacity will be 90,000 vehicles per year. Of these, 60% will go for export. In September 2022 Astana Motors signed memoranda with Chinese automobile concerns Chery Automobile Company, Changan International Corporation, and Great Wall Motor, allowing it to manufacture these companies' cars in Kazakhstan.