Kazakhstan’s Automotive Sector Grows Despite Global Downturn

While global car production is slowing, Kazakhstan’s automotive industry is showing consistent growth and strengthening its role in the regional market, Orda.kz reports, citing Reuters.

Over the past five years, Kazakhstan has tripled its car production, supported by strategic investments in digitalization, artificial intelligence, industrial infrastructure, and foreign partnerships.

Two major companies are currently leading production: Allur and Hyundai Trans Kazakhstan. Allur’s facility in Qostanay, which produces Kia, Chevrolet, Skoda, JAC, Jetour, and Hongqi vehicles, accounts for 61% of domestic output with an annual capacity of up to 125,000 cars.

Hyundai Trans Kazakhstan in Almaty holds a 31% market share with a capacity of 50,000 vehicles per year.

Two new car factories are expected to open in 2025. One of them, located in the Qostanay region, will be Kia’s first plant outside South Korea, financed entirely by the company.

The facility is expected to produce 70,000 cars annually, with a total investment of $200 million. The second plant, set to open in Almaty, will focus on Chinese brands and is expected to produce up to 90,000 vehicles per year.

Kazakhstan is also focusing on localizing the production of automotive components, including tires, batteries, and metal casting, to reduce its reliance on imports and improve its standing in global supply chains.

Original Author: Maria Kravtsova