Auto industry starts the auto boom: production of cars in Kazakhstan jumps by almost 80% on-year
By the end of last year, the Kazakhstan auto industry produced 30 thousand cars, by 78.8% more than a year earlier. The main production is concentrated in the East Kazakhstan region comprising 60.8% of Kazakhstan, at 18.3 thousand cars, 59.9% more than a year earlier. Here, in Ust-Kamenogorsk, one of the two main automakers of the country, Asia Avto works. The company plans to raise the level of production by the end of 2019 to 30,000 passenger cars. Among the partners of the plant are the leading global concerns, such as Volkswagen Group, General Motors, Renault-Nissan-AvtoVAZ and KIA Motors. Auto Asia manufactures LADA (Granta, Vesta, Xray, Largus, Kalina, 4×4), ŠKODA (Octavia, Rapid, Superb, Yeti, Kodiaq), Chevrolet (Aveo, Captiva, Cruze, Tracker), KIA (Rio, Cerato, Optima, Cadenza, Quoris, Picanto, Soul, Sportage, Sorento, Mohave).
According to Erik Sagymbaev, the President of Asia Auto, year 2018 was fruitful for Asia Auto and the industry as a whole. 14 new and updated models got on the conveyor of the company. In 2019, at least 6 models of 4 brands will replenish the line. The market share of the plant reached a record high, as according to the company, every third Kazakhstani who buys a new car chooses one of the Asia Auto models.
The Asia Auto plant is part of the Bipek Auto - Asia Auto group of companies. Also in the group are service and sales networks in Kazakhstan and Russia and the auto-complete Asia-Auto-Kazakhstan cycle plant being built jointly with Avtovaz (a complex of enterprises for welding, painting, car assembly and production of automotive components), which in the future will provide 120 thousand cars a year. Over 55 million dollar of own funds were invested in the implementation of the largest project of Russian-Kazakhstan cooperation in the production sector.
Another 39.2% of the production of passenger cars in Kazakhstan falls on the Kostanay region at 11.8 thousand cars, with an increase by 2.2 times on-year. SaryarkaAvtoProm operates here. According to the company, this is the only car factory in Kazakhstan that meets the requirements of the industrial assembly, within which welding, painting and body assembly operations are performed. The product line is represented by the brands JAC, Peugeot, IVECO, ANKAI, Hyundai, Ravon, Chevrolet Niva. Dealer centres operate in all regions of Kazakhstan.
According to the chairman of the board of directors of the Union of enterprises of the automotive industry in Kazakhstan, KazAvtoProm, Oleg Alferov, the Kazakhstani auto industry continues its steady growth over a two-year period. In 2018, production volumes were increased by two thirds and came close to the pre-crisis figures of 2014. It is planned that in 2019, the growing market demand and the opportunities of the program of preferential auto loans will allow to update the historical maximum of production indicators and overcome the threshold of 40 thousand cars that have come down from the conveyors of Kazakhstani enterprises.
In the first 11 months of last year, the Kazakhstani auto industry has already covered 52.4% of demand, against only 36.2% in the previous year. Against the background of a rapid rise in domestic production, imports declined by 3.3%. Domestic sales of passenger cars grew by a third year-on-year.
Over the past year, official dealers sold 57.9 thousand cars, which is 24.9% higher than the result a year ago. 29.6 thousand cars or 51.1% from the number sold at the end of the reporting period accounted for imports, 28.3 thousand buyers or 48.9% opted for the products of Kazakhstani car factories.
According to the results of 2018, the rating of the most sought-after Kazakhstani brands is headed by Lada, as 13.4 thousand cars of the Russian brand were sold in the republic. Sales of Toyota models amounted to 12.3 thousand cars. The third position was taken by Hyundai with an indicator of 8.7 thousand cars. The TOP-5 includes KIA at 2.9 thousand, and GAZ at 2.7 thousand cars sold. The TOP-10 of the most successful brands also included Nissan at 2.4 thousand cars, Renault at 2 thousand, Ravon at 1.7 thousand, Volkswagen at 1.5 thousand, and UAZ at 1.5 thousand cars.
The TOP-5 most sought-after car brands of Kazakhstani auto assembly in 2018 were Lada at 13.1 thousand cars, Hyundai at 8.4 thousand, KIA at 2.6 thousand, JAC at 1.1 thousand, and Chevrolet at 1.1 thousand. The list of brands offered by domestic enterprises also includes Skoda at 835 cars, Ravon at 552, Peugeot at 149, and SsangYong at 16.
Summing up the development of the automotive industry in Kazakhstan in 2018, KazAvtoProm reported that within the state program of preferential auto loans in January – December 2018, 3.3 thousand cars were purchased, which accounted for 10.9% of all sales of locally produced cars.
By the end of 2018, Kazakhstanis handed over 27.2 thousand units of equipment for recycling. As part of the second phase of the recycling program for outdated vehicles, 13.7 thousand discount certificates were issued for the purchase of new cars. In total, almost 13 thousand certificates were presented to the car dealerships of the country, and Kazakhstanis acquired 7.9 thousand cars of domestic production using them.
The status of the largest dealer group in the Kazakhstan market, according to the Union of Automotive Enterprises, is taken by the Bipek Avto - Asia Avto holding company. At the end of the reporting period, 31.5% of all buyers of new passenger cars, including light-duty trucks, opted for the proposals of this group.
Another 22.8% of the market accounted for the sales of Astana Motors. The TOP-10 most notable participants in Kazakhstan auto retail also included Virage with a share of 8%, Toyota City Almaty at 5.3%, Allur Auto at 2.5%, Mercur Auto at 2.5%, Toyota Centre Zhetysu at 2.3%, Aster Auto at 2%, Avtomir at 2% and Toyota Centre Atyrau at 1.2%.
According to the results of 2018, residents of Almaty bought 15.5 thousand cars, Astana 10.4 thousand cars, Atyrau 4.3 thousand, Shymkent 3.8 thousand, Karaganda 3.6 thousand, Kostanay 3.5 thousand, Uralsk 2.6 thousand, Ust-Kamenogorsk 2.4 thousand, Aktau 2.3 thousand, and Aktobe 2.1 thousand cars.