RESULTS 2017: Car production in Kazakhstan tripled

The Association of Kazakhstan Automotive Business (AKAB) sums up the preliminary results of the automotive market in 2017.

• Car production in the country has tripled
• 1480 units of equipment were exported for the amount of 5.8 billion tenge
• Autoretail is recovering - growth at the end of 2017 was 6.1%

According to ACAB analysts, for the twelve months of 2017, six Kazakhstan factories produced 19 086 units of equipment (including cars, trucks, buses) with a total value 139.5 billion tenge, which in numerical terms is three times higher than the results of 2016. The auto industry - according to the Statistics Committee of the Ministry of National Economy of the Republic of Kazakhstan - became second in the industry, and its share in the mechanical engineering of the Republic of Kazakhstan in monetary terms increased to 17%.

Kazakh buyers are increasingly giving preference to locally produced cars. In 2017, it was sold in the country                    17 416 passenger cars, commercial vehicles and buses Made in Kazakhstan worth 120,5 billion tenge, and the demand for Kazakhstan Zhasalgan cars updates the best historical results: the market share at the end of the year increased to 35,5%.


RESULTS 2017: Car production in Kazakhstan has tripled - AKAB

The Kostanay plant showed a significant increase in production output "SaryarkaAvtoProm" primarily by loading its capacity with cars of new brands. In 2017, in addition to localizing the entire Hyundai line presented in the Republic of Kazakhstan, the plant began production of Ravon and Chevrolet Niva cars. At the end of the year, SaryarkaAvtoProm LLP produced 5 vehicles worth 912 billion tenge, or 71,3% of the total volume in monetary terms.​​​​​​​

Company "Asia Auto" According to preliminary estimates, it produced 11 passenger cars worth 412 billion tenge. The Kazakh-Russian joint venture closes the top three "Kamaz-Engineering" with a result of 820 trucks worth 13,6 billion tenge. Per share Hyundai Trans AutoSemAZ и Daewoo Bus Kazakhstan There are 942 trucks, buses, and other commercial vehicles produced for a total of 12 billion tenge.

 

RESULTS 2017: Car production in Kazakhstan has tripled - AKAB

The export of Kazakh cars also increased eightfold, which became possible thanks to an increase in the level of localization of passenger cars and commercial vehicles to 36% and 53%, respectively. Last year, 1 cars worth 480 billion tenge were sent to near and far abroad. The leader in the export of trucks is the Hyundai Trans Auto company - today Hyundai HD 5.8 and Hyundai HD 78 trucks are exported to Russia, Belarus and the Kyrgyz Republic. In addition to trucks, in the reporting year, 35 Lada 1×205 vehicles were exported to China and 4 JAC S4 crossovers to Tajikistan and Russia.

Against the background of growth in the production of domestic cars in the market as a whole, the demand for new cars increased by 6,1%. Autoretail in the country is gradually recovering, and, starting in March 2017, has been demonstrating positive dynamics month after month. In total, official dealers sold 49051 cars, commercial vehicles and buses.

The TOP 5 best-selling brands by brand, as in last year, is headed by Toyota – 9 cars sold (+267%). Lada is in second place – 5.2 (+8%). The top three is completed by a newcomer - the Uzbek Ravon - 733 cars; sales increased tenfold with the start of production of the R7,2 sedan in Kostanay. In fourth place is Hyundai – 4 (+621%), cars predominantly assembled in Kazakhstan. GAZ commercial vehicles are in fifth place in the ranking – 3 (+3%). Of the forty-five brands officially represented on the Kazakh car market, most of the companies ended the year with positive sales dynamics. Against the backdrop of growing sales of inexpensive cars, the premium segment is also doing well: BMW doubled its sales - 624 cars, but Lexus is still ahead (2,5 units), Mercedes-Benz is in third place - 2 sedans and crossovers.

In general, 2017 met the expectations of market participants and manufacturers. Development Bank of Kazakhstan JSC (DBK), as part of the state program to support domestic car assembly enterprises, allocated another 10 billion tenge for preferential car loans. In total, there are already more than 35 billion tenge in the system, money continues to work in revolving mode. In addition, in 2017, the second stage of the program for recycling end-of-life vehicles (VETS) was launched in exchange for a discount certificate when purchasing a new car. In total, during the operation of the program, the ROP Operator accepted 47 vehicles worth 111 billion tenge for recycling.

​​​​​​​Also, 2017 will be remembered for the beginning of official sales of electric vehicles - the BMW importer brought and sold four BMW i3s, and the assembly of JAC iEV6e and iEV7 electric vehicles began in Kostanay. Importantly, President of the Republic of Kazakhstan Nursultan Nazarbayev urges to accelerate the spread of electric vehicles in the country. According to the president, in the future only electric vehicles will be used in Almaty and Astana. The first step in this direction has already been taken - the government has approved the allocation of 303,7 million tenge (from the money collected from importers and manufacturers by the ROP Operator) for the installation of 109 chargers for electric vehicles by the Ukrainian company E-line. 50 charging stations will be installed in Almaty and Astana, and another 9 on the Astana-Borovoye highway. In total, by the end of 2018 there will be 350 stations in the country.

Anar MAKASHEVA,

Member of the Board of Directors of ACAB:

 

“In general, 2017 met the expectations of market participants and manufacturers. The share of officially sold new cars in 2017 is 75%, while back in 2013-2014 the share was no more than 50%. The recovery trend will continue in 2018, according to our forecasts, we expect growth of 15-20%. First of all, this is due to the demand for domestically produced cars; this year the state will allocate an additional tranche of 8 billion tenge for preferential lending. In addition, as part of the transformation of the tax code, manufacturers will receive additional benefits, which will have a positive impact on the growth of car sales Made in Kazakhstan."

We will inform you in more detail about production results, automotive market trends and the forecast for 2018 later, follow our newsletter!

For your information:

The Association of Kazakhstan Automotive Business (AKAB) is a non-profit organization that unites all 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.

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Date: 16.01.2018