Press release
31 March 2015 year
The growing share of the automotive industry in the GDP structure increased wages in the industry to 157 tenge
Over the past 4 years, the share of the automobile industry in the country's GDP has increased 4,5 times. The growth dynamics made it possible to create more than 120 new jobs and increase the average salary to 000 tenge.
The auto industry is one of the fastest growing sectors in the industry. In January-February 2014, the share of the automobile industry was 9,31% of total output in mechanical engineering. This year this figure is already 26%.
According to ACAB analysts, the contribution of the automobile industry to GDP is 70 billion tenge. Back in 2012, the volume of gross added value of the automobile industry was approximately 35 billion tenge, and in 2010 - 8 billion tenge. This dynamics indicates an increase in the efficiency of production of cars and commercial equipment. Added value is the direct contribution of a particular industry to the economy through created jobs, built factories and production facilities, and the generation of profits, which in the future, as a rule, is returned to production as investment.
If we consider it from the perspective of a common man in the street, the contribution of the automotive industry to the country’s economy per capita is about 8 tenge. This can be considered not only as a contribution to the economy, but also as a contribution to improving the well-being of each person, as these are taxes to the budget, wages, investments in education, development, and new technologies.
Considering examples of the development of the automotive industry in some of the largest countries in the world, one can also trace the relationship between the increasing share of the automotive industry in the country’s GDP and the development of the economy as a whole. For example, the US auto industry provides about 3% of GDP ($500 billion) and employs about 8 million Americans (including in dependent industries). S&P estimated in 2008 that the bankruptcy of the Big Three (GM, Ford, Chrysler) over three years would lead to the loss of 3 million jobs, $400 billion in personal income, $156 billion in taxes and 0,2% of GDP. In the Russian Federation, the share in GDP is slightly less than 1% (667 billion rubles), and about 1,5 million people work in it.
The automobile industry, as part of the mechanical engineering industry in Kazakhstan, is already becoming the engine of economic growth in the country. The Kazakh car market has great potential, because it is far from saturated and has a very low level of motorization. According to the rating of countries by the provision of population with cars, which was prepared by Autostat, there are 270 cars per thousand people in Kazakhstan (for comparison, in Russia this figure is 317, in Belarus - 355, in the USA - 801, in France - 581, in Finland - 659 ), which puts the country in 58th place in terms of motorization out of 145.
And now, during the first five-year plan with the assistance of the FIID Program, the auto industry for Kazakhstan has become an industry whose slowdown in the rate of development can cause a domino effect, affecting the production of auto components, the chemical industry, metallurgy, banks, insurance companies, commercial real estate and even the performance of entire regions (Kostanay, Ust-Kamenogorsk, Semey). For example, if you look at the average car driver filling up for 5 tenge per week, then this amount will be 000 tenge per month. If there is no car production, the oil industry could lose about 20 billion tenge annually. According to experts, each job in the automotive industry creates at least 000 additional jobs in related industries.
Therefore, continued government assistance to the development of the automobile industry is an integral part of maintaining the economy. This will also make it possible to implement the country’s plans for Kazakhstan to join the 30 most developed countries in the world.
Let us remind you that there are currently six auto production sites in Kazakhstan. In 2014, investments in the industry amounted to more than 14 billion tenge. More than 40 thousand units of passenger cars and commercial vehicles worth 188 billion tenge were produced. The share of engineering products in the republic accounts for about 3% of total exports and more than 41% of imports. In the automotive industry, the share of Kazakhstani production reaches 30%.
Since the end of 2013, in Kazakhstan, at the SaryarkaAvtoProm site in Kostanay, production in the CKD mode started for the first time in Kazakhstan, i.e. full cycle of car production, including the production of Toyota Fortuner cars. The CKD production method entails a high percentage of localization (up to 50%), large production volumes (from 25 thousand) and many works performed on site (for example, painting and welding of the body).
Andrey Lavrentyev, President of the Association of Kazakhstan Automotive Business.
“In the long term, the market expects growth that will ensure the level of motorization up to 350 units. per 1000 people by 2025. In 2015-2019, the market will be supported by government programs in accordance with the second five-year plan of the State Enterprise for Industrial Development and Investment Development. The role of the automotive industry in the development of the country's economy will increase as the level of localization increases, the production of auto components is established, and new investors and technologies enter the domestic market. According to preliminary forecasts, by 2017 the gross added value of the automobile industry will amount to 134 billion tenge.”