The automotive market of the Republic of Kazakhstan shows steady and annual growth in sales of vehicles. The Japanese Mitsubishi Lancer and South Korean Hyundai Elantra, which until recently occupied leading positions, were replaced by Chinese Chery and Changan. The country's leadership and car manufacturers from China have made an ambitious decision to build a car manufacturing plant in Kazakhstan.
Why cluster construction?
The principle of exporting cars in disassembled form with subsequent assembly in the country of sale has proven itself well and is considered effective for manufacturers. Increase in the share of parts and components produced in the territory of the importer:
- Reduces the cost of the machine in direct proportion.
- Increases the employment of the population.
- Promotes the industrialization of the state.
- It is the basic basis of economic growth.
According to the approved construction plans, an automobile cluster will be fully organized and operational in Kazakhstan by the end of 2025. Direct investments in the project have already exceeded 182 billion tenge, of which almost 30% are own funds of the Kazakh company Astana Motors. The remaining 70% are so–called borrowed repayment funds. They are provided by the national bank on favorable terms for today: for 15 years at a rate of 9% per annum through proven financial instruments of legal leasing FRP and DBK guarantees.
The project has already been approved and, according to the agreed plan, is actively moving towards its final stage – the production of machines with a high proportion of domestic components.
What exactly will the technopark do?
The automotive cluster, which is huge in scale, will include: automotive production and conveyor assembly shops, assembly and production sites for components, warehouses and logistics terminals for processing parts, assemblies and assemblies coming from abroad.
Mutually beneficial cooperation with companies from South Korea will continue. Astana Motors is additionally investing in the construction of a technopark of automotive components. It will start operating in the fourth quarter and, together with leading South Korean enterprises, will supply car seats, multimedia systems and a wide range of plastic parts to assembly shops.
