Kazakh residents prefer domestically produced cars

Kazakh residents prefer domestically produced cars
Kazakh residents began giving preference to the domestic automotive industry more often. According to Kazakh Ministry of Industry and Infrastructure Development, every second new car sold in Kazakhstan is domestically produced. There is also demand for the Kazakh vehicles in export markets. In order to cover the demand, the Kazakh automotive industry is increasing output and demonstrates the growth momentum. The figures show the same. The motor vehicle production in the country increased 24.5 times and the annual influx of investments increased 14.4 times.
“From January to May, 26,810 cars were produced for a total of 173 billion tenge (US$428.2 million). The growth amounted to 47 percent. 1,659 light passenger vehicles were exported to Russia, Belarus, Kyrgyzstan, Tajikistan and Uzbekistan over the same period,” Kazakh Ministry of Industry and Infrastructure Development reported.
The agricultural engineering in Kazakhstan is also showing positive results. Its production grew five times within 10 years. Investment growth amounted to 3.4 times. The average level of product localization stands at 37 percent. Within the first five months of this year alone, the agricultural equipment worth 12.05 billion tenge (US$29.8 million) was produced. The growth amounted to 54 percent. In addition, Kazakhstan launched a program leasing the domestic tractors and combines in order to develop the industry.
The industrialization program allowed the country to increase production volumes in railway engineering almost four times. Kazakhstan launched the first enterprise in the post-Soviet area that introduced a modern automated technological complex for manufacturing of solid-rolled wheels for the railway. Its annual capacity is 200,000 wheels. The localization level is 68 percent. The products manufactured at this enterprise completely cover the needs of the domestic market. In addition, 60 percent are exported to Iran, Azerbaijan, Russia and Turkmenistan. More than 71,000 of wheels were produced at the enterprise within the past five months. Total revenue amounted to more than 16 billion tenge (US$39.6 million). In total, this year, the railway enterprises manufactured products worth 56 billion tenge (US$138.6 million).
According to Kazakh Ministry of Industry and Infrastructure Development, the industry of mining engineering in Kazakhstan achieved significant results over the years of industrialization. The production grew 1.7 times and exports 1.8 times. Products worth eight billion tenge (US$19.8 million) were manufactured in the country within five months. As for the oil and gas equipment manufacturing, industrialization program allowed Kazakhstan to increase the production volumes 4.2 times and export 1.1 times. Major world players were attracted. In total, products worth 21 billion tenge (US$51.9 million) were produced in Kazakhstan within only four months of 2020.
Mechanical engineering is the main driver of the manufacturing industry in the country, Kazakh Ministry of Industry and Infrastructure Development reported. The production grew five times over the past 10 years. The volume of investment in the industry tripled and amounted to 50 billion tenge (US$123.7 million). Export also grew three times and reached 1.1 billion tenge (US$2.7 million). The result of 2019 – the total worth of the products manufactured amounted to 1.37 trillion tenge (US$3.3 billion). According to the results of the first five months of 2020, products worth 535 billion tenge (US$1.3 billion) were released. This is 18.5 percent more compared to last year.
“Currently, nearly 3,000 mechanical engineering enterprises are operating in Kazakhstan. They employ 65,000 people. During the years of the industrialization program implementation, 128 projects worth 367 billion tenge (US$908.4 million) were implemented in the industry. Nearly 16,000 jobs were created,” the ministry reported.
Currently, Kazakh enterprises export products to Russia, China, the United Arab Emirates, Tajikistan, Azerbaijan, Turkmenistan and other countries. Mechanical engineers don’t plan to stop there. Kazakhstan approved the Roadmap for the development of mechanical engineering for 2019 to 2024. Currently, experts are actively working on the development of a joint oil and gas engineering with Russia.
Photo: kapital.kz