By Abdul Kerimkhanov
The automotive industry is one of the fastest growing sectors of the domestic economy of Kazakhstan.
From 2017 to 2018, the growth of car production in Kazakhstan was 66 percent, Anar Makasheva, Vice President of the Kazakhstan Auto Business Association, declared at the 4th Kazakhstan International Automotive Forum, the Kapital.kz reports.
“We expect growth to continue in 2019. We expect a twofold increase in production compared with the previous year. In 2018, the volume of production amounted to 32,000 units. We expect 60,000 units of cars to be produced in 2019,” she said.
Makasheva noted that the export markets of Kazakhstan are Russia, Belarus, Tajikistan. Buses, cars and trucks are exported to these countries.
She reported that the growth of the automotive industry in mechanical engineering in 2018 was 19.2 percent, and as many as 1.1 billion tenges ($2.9 million) was invested in the production of vehicles and components.
At the press conference, Makasheva also spoke about the measures of state support.
"Concessional lending with the support of JSC "Development Bank of Kazakhstan" is the most effective program to stimulate demand, today there are several programs: a program of preferential car loans for cars at 4 percent per annum, preferential leases at three percent per annum, separate programs for the bus fleet update at seven percent per annum with an initial contribution of 15 percent,” she concluded.
Earlier, Anar Makasheva said that car sales in Kazakhstan could exceed 70,000 units in 2019.
The main driver of the domestic auto industry development is state support, including the old car recycling program - at the end of June 2018, it was one year since its inception.
The first Kazakh car was released in 2002. It was a VAZ-2121 "Niva". With this car, the era of the automotive industry in Kazakhstan began.
Joint-stock company "ASIA AVTO" was founded on December 20, 2002. The goal of ASIA AVTO is the creation in Kazakhstan of the automotive industry, which allows the production of competitive cars and meeting the needs of the Kazakh population and some of the nearby countries.
Cars of the following brands are manufactured at the facilities of ASIA AVTO in Ust-Kamenogorsk: LADA (Granta, Vesta, Xray, Largus, Kalina, 4 × 4), ŠKODA (Octavia, Rapid, Superb, Yeti, Kodiaq), Chevrolet (Aveo , Captiva, Cruze, Tracker), KIA (Rio, Cerato, Optima, Cadenza, Quoris, Picanto, Soul, Sportage, Sorento, Mohave).
After the visit of previous President Nursultan Nazarbayev to South Korea, Kazakhstan launched two new large automotive enterprises: Kostanay SaryarkaAvtoProm plant for assembling SsangYong off-road vehicles (now JAC, Peugeot, Ravon and Iveco are assembled there) and Almaty Hyundai Trans Auto for assembling Korean buses and special equipment.
Abdul Kerimkhanov is AzerNews’ staff journalist, follow him on Twitter: @AbdulKerim94
Follow us on Twitter @AzerNewsAz