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Automotive Industry

Kazakhstan’s Auto Industry Expands Output Amid Strong Demand

Kazakhstan’s automotive industry is increasing production on the back of strong domestic demand and ongoing localization policies. However, the sector is expected to face challenges in expanding into export markets in the coming years. In 2025, the country produced approximately 171,000 vehicles, while sales reached around 235,000 units, according to industry data. The broader engineering sector has expanded 8.5-fold over the past decade, reaching a historic high. Automotive manufacturing accounts for about 41% of this segment, making it one of the key non-resource drivers of the economy. One of the main factors behind growth is demand for fleet renewal. According to Zhaslan Azenov, advisor to the president of the Kazakhstan Automobile Union, the country’s passenger car fleet totals around 5.9 million vehicles, with more than 40% older than 20 years. The share of domestically produced vehicles in total sales reached 69% in 2025, reflecting the strengthening of local production, Azenov told The Times of Central Asia. Kazakhstan currently has 11 automotive manufacturers in operation, with one additional project under development. Major production sites are located in Kostanay, Almaty, Semey, Kokshetau, Saran, and Uralsk. Among the most popular brands on the market are Hyundai, Chevrolet, and Kia. The Chevrolet Cobalt remains the top-selling model, followed by the Hyundai Tucson, Kia Sportage, Hyundai Mufasa, and Hyundai Elantra. “Among the most popular models, the absolute leader is the Chevrolet Cobalt. The top five also includes Hyundai Tucson, Kia Sportage, Hyundai Mufasa, and Hyundai Elantra,” the industry representative said. At the same time, the presence of Chinese manufacturers is growing rapidly. Their market share has increased from 2% in 2020 to 39% by the end of 2025, driven by aggressive market entry strategies and plans for localized production. Deepening localization remains a key priority. Projects are underway to produce automotive components domestically, including interior elements, body parts, technical systems, and electronics. This is expected to reduce dependence on imports and lower production costs. “Kazakhstan is transitioning from simple assembly to deep localization. Today, we have a number of production facilities for interior components such as seats, flooring, headliners, and mats. In exterior components, we produce bumpers, plastic parts, and mudguards; in technical systems, exhaust systems, cooling and heating systems, wiring harnesses, fuel and brake lines; as well as consumables such as batteries, tires, paints, and sealants. In electronics, we are developing multimedia systems,” Azenov said. The electric vehicle segment remains at an early stage of development. As of September 2025, just over 22,000 electric vehicles were registered in the country, including around 21,000 passenger cars. Industry growth has also been accompanied by rising employment. The number of workers in automotive manufacturing increased from around 2,000 in 2018 to more than 11,000 in 2025. “It should be noted that the industry’s growth has been accompanied by a significant increase in jobs. If in 2018 just over 2,000 people were employed in automotive manufacturing, by 2025 this figure exceeded 11,000,” Azenov added. According to industry forecasts, vehicle sales could reach around 247,000 units in 2026, while...

Automobile Industry

Kazakhstan’s Auto Industry Accelerates: Vehicle Output Up Nearly 37%

Vehicle production in Kazakhstan increased by 36.8% year-on-year in January-March 2026, according to data from the Kazakhstan Automobile Union (KAU). KAU reported that 45,260 units were produced in the first three months of the year, including passenger cars, trucks, trailers, and semi-trailers. In March alone, output reached 17,462 units, up 42.8% compared to the same month last year and 19.9% higher than in February. In value terms, total automotive output amounted to approximately $1.2 billion, representing a 27.5% increase year-on-year. The sector’s share of the overall machinery industry rose to 43.1%, up from 39.7% a year earlier. “Based on the results of the first three months, Kazakhstan’s auto industry is demonstrating steady growth,” said KAU President Anar Makasheva. “The continued strong performance in March confirms positive trends in the sector. Significant growth has also been recorded in the auto components segment: over three months, production of automotive parts and accessories reached 259.8 billion tenge, increasing fourfold compared to the same period last year. Manufacturers will continue to accelerate growth in this segment.” Passenger cars continue to account for the largest share of output. During the reporting period, 42,115 units were produced, up 37.9% year-on-year. Truck production reached 1,380 units (+16.7%), buses totaled 750 units (+73.2%), and trailers and semi-trailers reached 904 units (+21%). Output of special-purpose vehicles declined to 111 units. The Kostanay-based Allur plant remained the industry leader, producing 14,234 vehicles. Astana Motors Manufacturing Kazakhstan in Almaty produced 12,778 units, while Hyundai Trans Kazakhstan manufactured 10,755 vehicles. The Kia Qazaqstan plant produced 4,640 units. Other manufacturers include QazTehna (806 units), SemAZ (627 trucks), Hyundai Trans Almaty (196 units), Daewoo Bus Kazakhstan (148 units), and KAMAZ-Engineering (135 units). Among the most popular brands produced in Kazakhstan were Hyundai (10,725 vehicles), Chevrolet (8,341), Kia (5,084), Changan (4,102), Haval (4,099), Chery (3,744), Jetour (2,250), Geely Galaxy (1,388), JAC (979), and Tank (833). The increase in output continues last year’s trend, when Kazakhstan set a record by producing more than 171,000 vehicles in 2025.

Agriculture

Kazakhstan Extends Ban on Chicken Egg Imports to Support Domestic Producers

Kazakhstan has decided to extend a ban on chicken egg imports in an effort to support domestic poultry producers. The restriction will also apply to imports from member states of the Eurasian Economic Union (EAEU), despite the absence of customs borders within the bloc. The decision was made during a meeting of the Interdepartmental Commission on Foreign Trade and Participation in International Economic Organizations, chaired by Deputy Prime Minister and Minister of National Economy Serik Zhumangarin. The commission reviewed several key issues affecting the country’s food security and economic policy. “An import ban on chicken eggs will be introduced for six months, including imports from EAEU countries. The relevant order will be adopted by the Ministry of Agriculture,” the government press service said following the meeting. According to the government, Kazakhstan currently has 70 poultry farms, including 34 specializing in egg production, 29 focused on meat production, and seven engaged in breeding and reproduction. In 2025, domestic production of chicken eggs increased by 2.4% to reach 4.57 billion eggs. As a result, local production now covers approximately 98% of domestic demand. Kazakhstan previously introduced temporary restrictions on egg imports in December 2025, when the Ministry of Agriculture imposed a one-month ban on imports of fresh chicken eggs. That measure expired on January 11, 2026. Earlier, a similar restriction had already been in place from April 2025 for six months. Taken together, these measures effectively closed Kazakhstan’s egg market to imports for more than a year. The commission also reviewed the possibility of introducing restrictions on potato exports. After assessing domestic market conditions, however, officials decided not to impose export limits. According to the government, stabilized prices and sufficient domestic supply make it possible to maintain potato exports without additional restrictions. At the same time, requirements for exporters seeking beef export quotas will be eased. The decision takes into account the government’s Comprehensive Livestock Development Plan, which aims to increase Kazakhstan’s cattle population from 7.9 million to 12 million head. The program also seeks to expand Kazakhstan’s beef export potential and open new foreign markets. The Ministry of Agriculture will amend the existing quota distribution rules accordingly. Meanwhile, authorities decided to extend the ban on the export of breeding livestock, including female cattle, as well as young bulls, in order to preserve breeding stock and ensure sufficient supply for domestic meat processors. The restriction also applies to exports to EAEU member states. As previously reported by The Times of Central Asia, Kazakhstan increased revenue from agricultural exports by more than one-third in 2025 compared to 2024.

Drones

Kazakh Military Advances Domestic Drone Production

Kazakhstan’s Airborne Assault Forces (AAF) are establishing an independent production base for unmanned aerial systems (UAS), signaling a strategic shift toward greater self-reliance in military technology. According to the Ministry of Defense, approximately 100 drones have already been assembled and deployed across various branches of the armed forces. Unmanned units were formally established within the AAF two years ago. Since then, military personnel have gained hands-on experience in drone operations and developed in-house capabilities for maintenance, repair, and assembly. This has significantly reduced dependence on foreign supplies and accelerated the integration of unmanned systems into the military structure. A dedicated workshop for the production and servicing of drones began operations in December 2025. Within two months, the facility had launched a full production cycle from hardware assembly and software configuration to testing and delivery. “The 100th drone was recently assembled here,” the Ministry of Defense reported in a statement. The facility is staffed by contract personnel who have completed specialized technical training. All drones undergo mandatory testing before being dispatched to military units. Military experts note that the development of domestic UAV production is driven by the evolving nature of warfare. Recent armed conflicts have underscored the growing role of drones in reconnaissance, fire correction, target designation, and unit coordination. In 2026, systematic training of UAV operators will begin at the AAF’s training center. Instruction will be led by specialists with operational experience across various UAV platforms. Kazakhstan’s UAV units have already seen active deployment during the Desant-2025 military exercises, held from September 2-12, 2025, at the Koktal training ground in the Zhetysu region. More than 3,000 AAF personnel participated in the drills. The military's drone development effort mirrors a broader trend in Kazakhstan, where drones are increasingly used in civilian sectors. As previously reported by The Times of Central Asia, a pilot project for drone-based delivery services is set to launch in Almaty in 2026. Elsewhere, researchers in East Kazakhstan are employing drones and artificial intelligence to monitor soil and crop conditions, while engineers in Karaganda have unveiled prototypes of safety-enhancing UAVs for public use.

Exports

Tajikistan Revises Export Duties to Boost Domestic Processing

The government of Tajikistan has approved revised export duties on raw materials and semi-processed goods, a move that has prompted considerable discussion within the business community. The changes, which directly affect exporters and producers, are intended to stimulate domestic processing and reduce the export of unrefined resources. The key reform replaces fixed tariffs with duties calculated as a percentage of a product’s market value. Previously, export duties were set at: €300 per ton for leather 20% or €100 per ton for silk and cocoons 10% for cotton fiber Under the new rules, export duties fluctuate with global market prices, allowing for more adaptive regulation. According to the Ministry of Economic Development and Trade, the reform is designed to promote higher-value production within Tajikistan. “The goal of this resolution is to reduce the export of raw materials and support the production of high-value goods,” said First Deputy Minister of Economic Development and Trade Ashurboy Solekhzoda. The revised duties apply to a range of commodities including cotton fiber, leather, silk, cocoons, minerals, concentrates, plant juices, and other semi-processed goods. However, around 34 categories of raw materials remain exempt from export duties. Tajikistan’s approach mirrors policies implemented in neighboring states. Kazakhstan imposes export duties on 44 product categories, including leather, wool, scrap metal, sunflower seeds, and oil. In Uzbekistan, export duties apply to over 86 types of goods, with some rates reaching as high as 100%. Such measures aim to reduce reliance on raw material exports, stimulate domestic value-added industries, and enhance export competitiveness. Economists and industry observers say the new policy could incentivize companies to expand local processing operations and reduce dependence on commodity exports. It may also enhance Tajikistan’s attractiveness to foreign investors interested in long-term, value-driven partnerships. Over time, the revised export framework is expected to help strengthen the national economy and integrate Tajikistan more deeply into regional supply chains across Central Asia.

Automotive Industry

Kazakhstan’s Automotive Industry Boosts Revenues by Over 50% in July

Kazakhstan’s automotive industry posted strong growth in July 2025, producing 11,700 vehicles valued at KZT 164.9 billion ($305.3 million), according to the Kazakhstan Automobile Union. This represents a 50.1% increase in production volume compared to July 2024. Data from the National Statistics Bureau shows that in July 2024, the country produced 7,800 vehicles worth KZT 100.9 billion ($186.8 million). Over the past year, the industry has not only expanded output but also significantly boosted revenue. From January to July 2025, Kazakhstan produced 83,200 vehicles valued at KZT 1.16 trillion ($21.4 billion), marking a 16.7% year-on-year increase. The automotive sector now accounts for 40.7% of the national engineering industry. Passenger cars led the growth, with 75,400 units produced, up 19% from the same period last year. Bus production also saw a 5.5% uptick, totaling more than 1,300 units. In contrast, truck output declined by 10.5% to 4,100 vehicles. Manufacturers also turned out 1,900 trailers and semi-trailers, along with 453 special-purpose vehicles. Regional Breakdown Kostanay remains the top manufacturing hub, producing 45,700 vehicles, a 6.9% increase, at Allur’s facilities. In Almaty, the Hyundai Trans Kazakhstan and Hyundai Trans Almaty plants reported a record 41.8% increase, assembling 31,200 vehicles. Production trends varied in other regions: Semey: Down 17.5% (2,400 units) Karaganda region (QazTehna): Up 28.1% Kokshetau (KAMAZ-Engineering): Up 34.6% Top Brands and Models The most produced brands from January to July were: Hyundai: 30,800 units Chevrolet: 16,500 Kia: 14,800 Jetour: 7,100 Jac: 5,600 Leading models included the Chevrolet Cobalt (13,600 units), Hyundai Tucson (11,900), Kia Sportage (nearly 7,000), Hyundai Elantra (4,900), and Hyundai Mufasa (4,600). Anar Makasheva, President of the Kazakhstani Automobile Union, credited the industry's progress to the expertise of more than 8,000 specialists: “The growth in production strengthens the position of the domestic automotive industry and opens up new opportunities for enterprises.” She also announced the upcoming launch of two new plants: the multi-brand Astana Motors Manufacturing Kazakhstan facility in Almaty and a new KIA production line in Kostanay. Together, these projects are expected to create over 5,000 jobs. As previously reported by The Times of Central Asia, Kazakhstan set a record for car sales in 2024. Domestic automotive production is projected to reach approximately 150,000 vehicles in 2025.