Kazakhstan’s Automotive Industry Exceeds Forecasts
Kazakhstan’s Automotive Industry Shows Strong Growth in Recent Years
In recent years, Kazakhstan has witnessed rapid growth in its automotive industry, with a significant increase in car production. In 2023, the country produced over 148,000 cars, marking a 30% increase from the previous year. This growth is attributed to the government’s economic diversification policy, which aims to develop the real economy.
The national economy saw a 5.1% growth last year, with mechanical engineering increasing by 27% in the first 10 months of 2023. Among all sectors, the automotive industry recorded the highest growth at 42%, according to the Kazakh Ministry of National Economy.
The launch of new manufacturing plants has played a key role in the industry’s development. Global players such as KIA, Hyundai, Daewoo, Chevrolet, IVECO, and ANKAI have established operations in Kazakhstan, contributing to the sector’s dynamic growth.
One of the major contributors to Kazakhstan’s automotive sector is the Kostanai Region, home to leading machine-building enterprises like Allur, the country’s largest automobile plant. Allur has partnered with companies like General Motors and Skoda to produce a wide range of vehicles locally.
The assembly of agricultural machinery is also flourishing in Kazakhstan, with companies like Agromash Holding KZ producing thousands of combine harvesters, tractors, seeders, and pick-up platforms annually.
State measures have been implemented to support the development of the automotive sector, including mandatory recycling fees, localization requirements, and tax incentives for manufacturers. The government has also introduced an agreement on the industrial assembly of motor vehicles to promote the use of domestic automotive components.
The upcoming Kazakhstan Machinery Fair, scheduled for April 24-26 in Astana, will provide a platform for Kazakh and foreign companies to showcase their machinery and technologies. The event will also feature discussions on industry trends, automation, and international cooperation.
Overall, Kazakhstan’s automotive industry is on a positive trajectory, with a growing focus on sustainability, localization, and industry partnerships. The sector’s expansion is expected to continue, driving further economic growth and creating new job opportunities in the country.
