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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.

Automotive Industry

Kazakhstan’s Auto Market Enters an Era of Industrial Warfare

In 2026, Kazakhstan’s automotive market is undergoing a fundamental transformation. The era of unregulated gray-market imports is coming to an end, while large corporate players are replacing independent importers. The government is deliberately changing the rules of the game by introducing strict tax and administrative barriers to unofficial vehicle imports. Chinese automakers are the main beneficiaries of these changes, rapidly displacing traditional Western brands. For local industrial groups, deep localization is no longer optional but has become a prerequisite for survival, triggering competition for exclusive contracts with Chinese manufacturers and access to government incentives. Legislative Barriers For many years, private imports accounted for a significant share of the market. At their peak in 2023, more than 60% of cars were imported through gray-market schemes. However, new administrative measures are making this model economically unviable. First, a strict quantitative limit has been introduced: an individual may now import only one car per year. Second, importing cars older than three years has become financially prohibitive. The base rate for initial registration has risen to $4,250, while recycling fees have increased and a 15% customs duty applies. Third, technical requirements have been tightened. Vehicles must now comply with the Euro-5 standard, possess a Vehicle Design Safety Certificate (VDS), and be equipped with an emergency call system (EVAK). At the same time, importing vehicles less than three years old is permitted only for legal entities holding a Vehicle Type Approval (VTA) certificate. Additionally, the cancellation of VAT exemptions has stripped independent dealers of their price advantage. As a result, gray imports have declined steadily. They accounted for about 35% of the market in the first half of 2025 and approximately 30% by the end of the year. In 2026, China exerted additional pressure. From January 1, the so-called “180-day rule” took effect: vehicles registered for less than six months cannot be exported without the manufacturer’s permission. This has significantly complicated re-export schemes and slowed capital turnover. Consequently, the gray market has been largely paralysed, and retail sales have shifted under the control of official distributors. The Dominance of Chinese Brands The decline in gray imports has coincided with a broader global realignment of supply chains. Chinese automakers have been the primary beneficiaries. According to the Kazakhstan Automobile Union, by March 2026 Chinese brands had captured more than 40% of the domestic market. Six brands, Chery, Jetour, Changan, Haval, Geely and JAC, now rank among the top ten in sales. They are steadily displacing traditional leaders. A telling example is Toyota, which has fallen to tenth place after losing nearly 60% of its sales year on year. Meanwhile, the electric and hybrid segment is expanding rapidly: sales of China’s BYD have surged by almost 800%. This growth is driven not only by competitive pricing and technological innovation but also by large-scale investment in dealer infrastructure. Under current conditions, Western and Japanese brands appear unlikely to regain their former positions in the near term. Capitalisation in Service and Logistics The shift to a corporate model requires...

Traffic regulations

Kazakhstan May Introduce Traffic Restrictions Based on Beijing Model

Kazakhstan’s Ministry of Ecology and Natural Resources has proposed that city authorities draw on Beijing’s experience in restricting private vehicle traffic on days with unfavorable weather conditions as part of efforts to combat air pollution. Beijing has operated an “even-odd” traffic system since 2011, under which vehicles with even-numbered license plates may drive on even dates, and those with odd-numbered plates on odd dates. While the measure in the Chinese capital was initially introduced to reduce traffic congestion, in Kazakhstan, it is being considered primarily as a tool to improve air quality. After reviewing Beijing’s practice, the ministry has instructed local authorities and regional environmental departments to prepare air protection plans for 2026-2028, including the possible introduction of similar restrictions. The ministry cited data from Kazhydromet indicating that by the end of 2025, eleven cities in Kazakhstan are expected to record persistently high levels of air pollution. The most affected cities remain Almaty, Ust-Kamenogorsk, Karaganda, Temirtau, and Aktobe. Despite the modernization of major industrial facilities and the adoption of best available technologies, a significant share of emissions originates from smaller sources, including motor vehicles, private households, and small businesses. In Almaty, approximately 60% of emissions are attributed to transport, while a further 12% comes from private homes and small boiler houses. A similar pattern is observed in Ust-Kamenogorsk. In response, the Ministry of Ecology has proposed that city authorities not only consider temporary traffic restrictions during periods of unfavorable weather but also accelerate the transition of public transport and taxis to electric and gas-powered vehicles, establish green belts around industrial zones, subsidize the gasification of private homes, promote connections to centralized heating systems, and ban the use of solid fuels in catering establishments and small boiler houses. The Times of Central Asia previously reported that the most severe smog and adverse weather conditions have recently been recorded in Ust-Kamenogorsk.

Environment

Kyrgyzstan Moves to Tighten Vehicle Emissions Rules as Air Pollution Worsens

Kyrgyzstan is preparing to tighten environmental regulations on motor vehicles as part of a broader effort to combat rising air pollution in its major cities. A draft bill currently under public discussion proposes mandatory requirements for the presence and proper functioning of catalytic converters in vehicles originally manufactured with them. The initiative targets one of the most persistent sources of urban air pollution: an aging vehicle fleet in which catalytic converters are frequently removed. The absence of these devices significantly increases toxic emissions and fuel consumption, with direct consequences for public health. Under the proposed amendments, vehicles that do not meet environmental standards could be prohibited from operating. Driving a vehicle without a functioning catalytic converter would result in fines of approximately $114 for private individuals and about $400 for legal entities. According to the bill’s explanatory note, the measures aim primarily to reduce pollution in urban centers such as Bishkek and Osh. Lawmakers emphasize that the widespread removal of catalytic converters contributes to both higher emissions and increased fuel use. Data from the Ministry of Natural Resources, Ecology, and Technical Supervision show that motor vehicles, particularly older models lacking emissions control systems, account for roughly 30% of air pollution in Bishkek. Vehicle numbers in the capital have surged in recent years. Bishkek now has more than 600,000 registered vehicles, nearly double the estimated road infrastructure capacity of 350,000. Over 300,000 of these vehicles are more than 15 years old, making them a major contributor to harmful emissions. Air quality in the city of more than one million residents remains a persistent concern, especially in winter, when coal-burning for residential heating, responsible for an estimated 40% of pollution, intensifies. Seasonal spikes frequently push Bishkek into the global rankings of the most polluted cities. The draft legislation could also pave the way for a regulated system to dispose of non-functioning catalytic converters, which contain valuable materials such as platinum group metals, rhodium, and cerium. The presence of these metals has fueled a gray market, with online advertisements and repair shops offering to remove converters for resale. Lawmakers argue that formal regulation would help curb theft and establish a legal recycling sector. In September 2025, the Cabinet of Ministers imposed a six-month ban on the export of catalytic converters and other waste containing precious metals, in an effort to limit illegal outflows and stabilize domestic oversight. The bill’s authors describe catalytic converter enforcement as a concrete step toward meeting Kyrgyzstan’s commitments under the Paris Agreement and reducing transport-sector greenhouse gas emissions. However, the effectiveness of the new rules will depend on enforcement capacity. With a significant portion of the current fleet already non-compliant, and the average vehicle age remaining high, implementation may face resistance unless supported by effective inspection systems and realistic compliance pathways. Kyrgyzstan’s proposed emissions crackdown signals a shift toward more enforceable environmental policy. If properly implemented, the measures could meaningfully reduce air pollution and curtail illicit trade in precious metals. Their success, however, will hinge on the state’s ability...

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.