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Despite the global crisis associated with the pandemic and the instability of the financial sector, the automotive industry of the Republic of Kazakhstan in 2020 showed significant growth in production and sales.
World analysts from NCSA (National Automobile Sales Association), which analyzes the auto industry in 96 leading countries, noted a global decline in the industry in the world in the middle of the year. However, even then, against the background of negative indicators of the permanent leaders of mechanical engineering, only 4 countries were able to show positive statistics, and Kazakhstan led them.
The Minister of Industry and Infrastructure Development of the Republic of Kazakhstan Beibut Atamkulov noted the greatest growth (more than 50%) in 2020 in the manufacturing industry in the automotive industry. This is confirmed by the data of the MIID and analysts of the Association of Kazakhstan Auto Business, summing up the results of the year in the automotive industry of Kazakhstan. The country's annual production volume reached 77 units of equipment in 471, which is one and a half times more than in 2020 (2019 units). In particular, there is an increase in the production of trucks and buses. In 50, domestic factories produced a total of more than 541 units of equipment, demonstrating about 2020% growth.
At the same time, in 2019, the share of the automotive sector in the mechanical engineering of the Republic of Kazakhstan was only a quarter (26,3%), but in 2020 this mark increased to a third (33,4%).
EVENTS 2020
The successful performance of the automotive industry in 2020 was influenced by a number of effective steps, both from the Government and relevant Ministries, and from domestic factories.
Global transnational investors were attracted to production, new brands appeared, including in the affordable segment. The industry reacted harmoniously and, most importantly, in a timely manner to quarantine measures related to the coronavirus pandemic, introducing online car sales and thereby maintaining the sales chain of manufactured products, as well as the availability of products to consumers. On behalf of the Government, car registration points were opened at car dealerships, which was positively noted by motorists.
An important role was played by preferential car lending and leasing programs, which for a number of years have allowed Kazakh consumers and representatives of small and medium-sized businesses to purchase automobile equipment through an affordable financial instrument.
The main industry events of 2020 should be considered the launch of new factories and production facilities in Kazakhstan.
In March, the production of Chevrolet cars was launched at the Kostanay plant. In less than a year, these domestic cars have become the fastest growing brand in the country, entering the top of the most popular brands of 2020 in Kazakhstan. During this time, the plant produced more than 15 thousand units of cars of this brand.
It is worth emphasizing that Kostanay manufacturers produced 51,7% of all equipment in the country in the past year. Having produced 40 vehicles, the company increased its performance to the 050th mark, using welding and painting operations. In 100, the plant plans significant investments in the amount of 2021 billion tenge in the installation of new production lines, as well as in expanding its logistics capabilities.
In October, a plant for the production of Hyundai passenger cars was opened in Almaty. Production capacity at the first stage is 30 thousand units, at the second stage - up to 45 thousand cars per year, including concluded export contracts. Operations for welding and painting car bodies were mastered, and a number of agreements were signed for the production of components. Thus, in 2020, Kazakh consumers showed special loyalty to the Hyundai brand, which became the most popular. The total investment amounted to 28 billion tenge.
In December, the city of Saran, Karaganda region, launched a plant for the production of buses and special equipment, created jointly with the Yutong company. The total investment in the company will be 23 billion tenge. The design capacity of the enterprise will allow the production of up to 1 units of buses and electric buses, as well as 200 units of special equipment annually. The produced transport will make a significant contribution to the implementation of the program for updating public transport in Kazakhstan. At the same time, the project will contribute to the supply of safe and modern transport to the country’s educational institutions. The first school bus of the plant was presented by the President of the Republic of Kazakhstan Kassym-Jomart Tokayev to the 500th gymnasium of Karaganda during a working visit to the region.
In Kostanay, work on the first stage of construction, jointly with KAMAZ PJSC, of a plant for the production of iron castings and crankcase beams for KAMAZ trucks with a capacity of 40 thousand tons of castings per year is at the final stage. In 2020, another project for the production of drive axle gearboxes was approved. The new plant will be capable of producing up to 62 units of components per year.
Both projects will be implemented in the industrial zone of Kostanay and integrated into the production chain of KAMAZ PJSC. The majority of all products will be supplied to the main conveyor in the Republic of Tatarstan. The launch of projects will create more than 1 new jobs. The total investment amount will be about 000 billion tenge.
A significant event for the city of Saran and the entire automotive industry as a whole will be the emergence of a new plant for the production of tires jointly with PJSC Tatneft. High-tech production entails the creation of 1 new jobs, meeting the needs of the domestic market and developing the export potential of Kazakhstan. The plant will be capable of producing up to 100 million tires for passenger vehicles and 3 thousand tires for commercial vehicles and buses. The amount of investment in the project amounted to 500 billion tenge.
In March, the construction of the first real localization project in Kostanay is completed. The localization center will produce components for all Kazakh manufacturers, thanks to which enterprises will be able to increase the share of domestic content in their products. The total area of production capacity will be more than 27 sq. m. m.
The project provides for modern technological equipment (welding robot, painting line, laser cutting, press brake, sheet bender, pipe bender, etc.). The project completely covers the needs of the agricultural machinery industry for localization of products (plastic parts, cabins, balers, seeders, components and attachments for tractors and combines). The development of production of component parts for the automotive industry has begun.
The localization center also includes a project for an innovative engineering center for the development of human capital, as well as a dormitory for specialists.
All new projects are significant components of the production belt of the Republic of Kazakhstan, where factories of a new format are united, focused on working with an emphasis on developing the production of components. Moreover, Kazakh enterprises are integrating into global chains for the production of automotive components, providing export markets with their closest neighbors - Russia, China and Uzbekistan.
EXPORT
The export-oriented nature of the factories demonstrates the high quality of the equipment produced and the trust in it from foreign clients.
In 2020, Kazakhstan exported 8 units of cars to neighboring countries, which is 122 times more than in 3 (2019 units). In general, over the calendar year, more than 2629% of all manufactured equipment worth 10 billion tenge was exported from the country.
Hyundai, Chevrolet and JAC brands are in high demand in Russia, Uzbekistan, Belarus and Kyrgyzstan.
CHOICE OF KAZAKHSTAN PEOPLE
In 2020, Kazakhstanis purchased more than 93 units of new equipment, which is 000% higher than last year (25 units). Moreover, 75 out of 156 cars purchased in the country are of domestic production.
The most popular brands in Kazakhstan last year were Hyundai, Chevrolet and Toyota. Note that 4 of the 5 most popular brands are made in Kazakhstan (Hyundai, Chevrolet, Ravon and Lada).
The best-selling brand among buses is undoubtedly Yutong. In 2020, about 1 units of buses and electric buses of this brand were sold in Kazakhstan.
AMBULANCE DOCTORS
The issue of the lack of ambulance transport in the past year has become one of the most popular issues around the world. Kazakhstan is one of the few countries that, using internal resources, was able to quickly cope with this problem.
In 2020, on behalf of the Government of the Republic of Kazakhstan, to combat coronavirus infection, domestic factories quickly established the production and supply of 1 units of emergency medical vehicles based on JAC Sunray, Hyundai H167, GAZelle NEXT, and UAZ, fully equipped with medical equipment.
In addition, 100 mobile medical complexes based on a 12-meter Yutong bus, which are popularly called “clinics on wheels,” were produced in Kostanay, and production of Chevrolet DAMAS was launched to ensure the transportation of patients to clinics. This product was developed jointly with the Ministry of Health of the Republic of Kazakhstan. A quick (less than a month), inexpensive (9,5 million tenge) and timely solution, which was supported by Samruk Kazyna National Welfare Fund JSC and Kaspi.kz.
AGRICULTURAL EQUIPMENT
In 2020, the growth in agricultural machinery production stands out. Like automobile plants, factories producing combines and tractors did not stop their production, which contributed to a stable harvest in the past year.
In general, as analysts note, domestic factories produced 6 units of equipment worth 272 billion tenge. The annual growth in production in volume terms amounted to 93%; in value terms, output increased immediately by 98,2 times.
In 2020, 3 tractors and combines were produced, which is 547% more than the same period a year earlier. The production of tractors reached 120 units worth 2 billion tenge. Of these, 585 tractors were produced in the Akmola region (“Belarus” and “RSM”), 39 units. accounted for by Kostanay factories (Lovol and Kirovets), 1 tractors in East Kazakhstan region (Belarus). During the year, 048 combines were produced in the country, which is 585 units more than in 561.
President Kassym-Jomart Tokayev, during an extended meeting of the Government of the Republic of Kazakhstan in 2020, indicated that in order to develop the agro-industrial complex, it is necessary to attract investments and technologies. In the industry, the message of the Head of State is being fulfilled with great success.
Thus, in recent years, the Kazakh agricultural machinery industry has not only deepened localization, but also actively expanded product lines.
New projects have appeared in the country together with the world's largest manufacturers of agricultural machinery, such as: "Petersburg Tractor Plant" (Kirovets), "Lovol", Rostselmash and others. 2020 was also marked by the signing of agreements with global agricultural machinery giants - German company "Claas" (construction of a plant in North Kazakhstan region) and an Austrian company "POTTINGER" (production of sowing complexes in Kostanay).
TASKS FOR 2021
In 2021, the Ministry of Industry and Infrastructure Development of the Republic of Kazakhstan and domestic manufacturers have clear tasks set by the state - production of 100 units of equipment, preservation and increase of jobs, increase in exports and the share of local content in products, and attraction of investment in the industry.
Analyzing the prospects for the development of the industry, the tasks of updating the country’s vehicle fleet, and the readiness of manufacturers, the Association of Kazakhstan Auto Business predicts the fulfillment of all indicators in 2021.