Kazakhstan car manufacturing industry doubled production volumes
Kazakhstan’s car manufacturing industry doubled its production volumes in 2018 compared to 2017. More than 32,000 cars were produced in Kazakhstan in 2018. 30 percent of spare parts were produced in Kazakhstan.
The manufacturers are set to increase the share of the locally manufactured parts to 50 percent.
Andrei Lavrentyev, president, Kazakhstan automobile business association:
- If the local content share is higher, the price will be fixed in Tenge. If the local content share is 50 percent, the price should be reduced. Sales for the Kazakhstan-made cars are increasing. The top five most popular car brands in Kazakhstan include four car brands manufactured in the Republic. In general, over the past three years, the demand for Kazakhstan-made cars increased from 17% to 49%. This suggests that cars manufactured in Kazakhstan are becoming more affordable due to financial measures such as concessional lending.
Kadyrolla Zhumagulov, director, car assembly plant:
- Kazakh second-tier banks issued nearly 1,700 loans worth more than eight billion Tenge for the purchase of Kazakhstan-made cars, but the car manufacturers’ profit exceeds eight billion tenge which demonstrates that the state program funds itself. It shows that the money that the citizens return to the banks is allocated to fund this program.
Foreign investors also contribute to Kazakhstan’s car industry developments by investing large amounts of money in the industry. In the next two years, more than US$1 billion will be invested in the country’s car industry.
