Car market and auto industry of the Republic of Kazakhstan: new plants, trends and prospects in 2020

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 The contribution of the automobile industry to Kazakhstan’s GDP exceeds 193,9 billion tenge
• The share of imports on the market of the Republic of Kazakhstan decreased from 40% to 35%
​​​​​​​• TOP 3 brands: Hyundai, Lada, Ravon
A third of the total volume of mechanical engineering in the Republic of Kazakhstan is accounted for by the automotive industry

According to preliminary data Association of Kazakhstan Auto Business (AKAB), in the five months of 2020, Kazakhstan produced 27 335 units equipment with a total cost of over 193,9 billion tenge. Issue volumes exceeded the results of January-May 2019 by 64,5%. The Kazakhstani auto industry in monetary terms provided a third of the volume of mechanical engineering (33,5%).
Car market and auto industry of the Republic of Kazakhstan: new plants, trends and prospects in 2020 - AKAB

On the "SaryarkaAvtoProm" accounts for more than half of all vehicles produced in the Republic of Kazakhstan. For the second year in a row, the Kostanay plant doubles production; in five months of this year it produced 14 421 units cars, trucks and buses worth 111,6 billion tenge.

The market share of localized cars in the Republic of Kazakhstan increased to 65%

According to analysts ACAB, in January-May 2020 official dealers sold 28 040 new passenger and commercial vehicles totaling 268,7 billion tenge, which in total is 6% more than in the same period in 2019.

Due to the COVID-19 pandemic and the quarantine imposed in cities and regions of the Republic of Kazakhstan, dealers were forced to suspend or limit their activities for a short time. The situation has stimulated business and the government to actively implement online trading. The Ministry of Digital Development, Innovation and Aerospace Industry, together with the Ministry of Internal Affairs, have done a lot of work to launch online registration and registration of cars. However, sales recovered in May. Leading the new car market in May 2020 Hyundai (1 847 units), Lada (1 701 units) and Ravon (1 039 units).

Car market and auto industry of the Republic of Kazakhstan: new plants, trends and prospects in 2020 - AKAB

The demand for domestically produced cars has increased from 60% in 2019 to 65% this year. Among the ten most popular brands (including export), the products of which were mastered at enterprises in Kazakhstan: Hyundai (6 062 units), Lada (5 412 units), Ravon (2 424 units), Kia (2 430 units) and JAC (536 units). Moreover Lada under the pressure of competition and rising prices, it is losing market share.

Car market and auto industry of the Republic of Kazakhstan: new plants, trends and prospects in 2020 - AKAB

Due to the exchange rate, changes also affected the pricing policy Kia. Primarily due to the lack of cars in stock. Unlike Hyundai, dealers have large stocks and cars are sold at the same prices. The only one who reduced steel prices Ravon и Chevrolet.

Commercial vehicles – high degree of localization and market share

Manufacturers of trucks and buses continue to show positive dynamics. For example, "SaryarkaAvtoProm" increased production of commercial vehicles in 8,8 times. Company "KAMAZ Engineering" showed an increase in production at the level 53% comparing with the previous year, "SemAZ" — 200%,Daewoo BusKazakhstan - 80% и Hyundai Trans Auto - 37%.

Trucks lead the ranking of heavy commercial equipment KAMAZ, production "KAMAZ Engineering", sold out in five months 369 units (+8%)"LAWSONS" production "SemAZ" — 239 (+12%). Rounding out the top three Hyundai Trucks with the result 88 cars.

Export of Made in Kazakhstan cars has tripled

"SaryarkaAvtoProm" The only enterprise producing passenger cars in the Republic of Kazakhstan that has fulfilled the agreement on industrial assembly continues to be the main exporter in the country's automotive industry. Cars HyundaiJACRavon и Chevrolet Kazakhstan-made products are ordered by distributors and dealers of brands in Russia, Uzbekistan and Kyrgyzstan. Since the beginning of the year, the total amount spent on exports 1 659 cars.

In Russia JAC plans to begin sales of two new crossover models and an electric car this year iEV7S Kazakhstan production. Investor represented by CMC has a clear strategy for the development of the domestic automobile industry and expansion in the EAEU. Moreover, I myself JAC very soon we will begin to cooperate more closely with Volkswagen AG. The world's largest auto giant has entered the final stage of negotiations to enter the capital of parent JAC-Motors. Volkswagen plans to invest 1 billion euros in production in the near future.

Car market and auto industry of the Republic of Kazakhstan: new plants, trends and prospects in 2020 - AKAB
“National Pavilion” – all domestically produced cars in one place

Construction is underway in Nur-Sultan, which will combine a wide range of cars localized in Kazakhstan. The highlight of the pavilion will be a separate zone dedicated to “green technologies” and automotive know-how, where anyone can get acquainted with the latest models of electric vehicles and company developments.

New enterprises in the industry

The automobile industry continues to lead in terms of growth in the industry and occupies one of the most important areas in the mechanical engineering of the Republic of Kazakhstan. Development prospects and the opportunity to enter the markets of the EAEU and neighboring countries continue to attract investment to the country.

Thus, warehouses and a car production line have already been built in the industrial zone in the north-west of Almaty Hyundai, commissioning work is in full swing, the painting and welding of car bodies will be commissioned very soon Accent и Crete. The capacity of the enterprise at the first stage will be 30 thousand cars. The total investment in the project is 25 billion tenge.

The main event of March was the launch of production of the model line Chevrolet on "SaryarkaAvtoProm" At the first stage, production volume will reach 26 cars per year. It is planned to export 000 cars. Light commercial equipment will be a good help for this. Ladies и Labo, which is widely used in small and medium-sized businesses, and its price does not exceed 3-3,5 million tenge.

Also in Kostanay, on the territory of the machine-building complex, work has begun on "Business incubator". They plan to locate enterprises producing components for cars and agricultural machinery there. Reconstruction of production premises with a total area of ​​more than 27 thousand square meters is already underway.

Together with KAMAZ PJSC, a unique project is being created in the basic branches of mechanical engineering, within the framework of which casting and machining production will be created. Finished products will be supplied not only to the domestic market, but to a greater extent to the main conveyor of KAMAZ PJSC in the Russian Federation.

According to the information portal of the Prime Minister of the Republic of Kazakhstan, production of buses and quarry equipment is planned in the city of Saran, Karaganda region yutong. The design capacity of the plant is 1 units of buses and 200 units of quarry equipment annually. The total amount of direct and attracted investments in the new enterprise will be about 500 billion tenge.
For your information:

​​​​​​​Association of Kazakhstan Automotive Business (AKAB) is a non-profit organization that unites official distributors, dealers, and automakers of passenger and commercial vehicles in the Republic of Kazakhstan.

ACAB is the only organization that officially receives data on sales, production and registrations of cars in Kazakhstan and has the right to distribute them. ​​​​​​​​The main task of ACAB is to form a competitive, strong, modern market in Kazakhstan, based on the best international standards and practices, as well as to organize a balanced system of relationships between the state and participants in the automotive market: consumers and suppliers of goods and services in the automotive industry and spare parts.
Date: 10.06.2020