The topic of localization of auto components in Kazakhstan brought together domestic and foreign manufacturers of automobiles and auto components, relevant ministries, quasi-governmental organizations, SMEs, and investors.

Recently in Astana, about 90 participants in the international conference “Prospects for the Development of the Automotive Component Base in Kazakhstan” presented their development strategies in the industry, reviewed development directions in the Kazakh market, discussed options for cooperation, agreed on assistance and enlisted government support.

Let us recall that on February 7, 2024, the President of Kazakhstan Kassym-Jomart Tokayev, at an extended meeting of the Government, emphasized the need for a consistent transition of the domestic automotive industry to a more complex level of car production and export, which will become an indicator of the high competitiveness of domestic entrepreneurs.

According to Shyngys Suyunbaev, Deputy Chairman of the Industry Committee of the Ministry of Industry and Construction of the Republic of Kazakhstan, according to the new conditions on industrial assembly, automobile enterprises in Kazakhstan are required to gradually increase the volume of production of vehicles using the small-knot method (CKD) from 20% of the total volume of cars produced in 2024 up to 50% in 2027.

In total, today domestic and foreign investors are directing 410 billion tenge to organize an auto components base in Kazakhstan. The global goal of localizing production is to make the product more accessible to the local population.Geographic proximity to the consumer and sources of raw materials reduces the manufacturer’s logistics costs, and this, to a certain extent, affects the cost of the finished product. In addition, localization reduces the risk of component shortages associated with supply problems, which global manufacturers faced during the pandemic crisis.

President of Kazakhstan Avtokolik Odagy (KJSC) Anar Makasheva noted that the Kazakh automobile industry has significantly increased production rates and domestic products are in greatest demand among the population, organizations, and businesses. For example, in 2023, the production of passenger and commercial vehicles increased by 30%, and sales of vehicles increased by more than 60%. The share of domestic cars in the market at the end of the year amounted to 70.7%.

The meeting participants also discussed issues of creating conditions for export, standardization, technical regulation, accreditation, conformity assessment, and highly appreciated the potential and investment climate of Kazakhstan. Representatives of SMEs, in turn, took part in the B2B session and identified new ways for business development in the automotive industry.

During the conference, a number of companies and organizations signed memorandums of cooperation.