Domestic Automotive Industry: Challenges, Solutions, and Growth Opportunities
As part of the international exhibition Automechanika Astana 2025, the Kazakhstan Automobile Union held a comprehensive business program that brought together leading industry experts, representatives of government bodies, and the business community. The discussions covered key areas of automotive industry development — from increasing localization levels to import regulation and road safety issues.
One of the key topics discussed during the session was the issue of local content. As noted by the Vice Minister of Industry and Construction of the Republic of Kazakhstan, Olzhas Saparbekov, the Ministry is currently developing a new digital tool that will enable more accurate monitoring of localization levels and help eliminate ambiguities associated with the previous certification system.
"We proposed merging the industrial certificate and the CT-KZ certificate into a unified digital system. This solution will enable clear identification of the level of technological operations, actual localization, and will distinguish manufacturers from assemblers. Even now, before the official launch of the tool, we are already seeing a positive impact: enterprises are beginning to cooperate and use domestically manufactured materials. This is the synergy effect we are striving for," he emphasized.
Ilyas Alzhanov, Head of the Analytics Department at the Kazakhstan Automobile Union, spoke about the dynamics of the automotive market and key market trends. He emphasized that the steady growth in new car sales is becoming a long-term trend, while the share of domestically produced vehicles in overall sales has remained consistently high in recent years.
"More than two-thirds of vehicles sold in the country are domestically produced. This reflects the maturity of our automotive industry, a high level of consumer trust, and strong price competitiveness. According to data from the first two months of 2025, the share remains at 65%, indicating a stable market structure. Kazakhstan is not just a consumer of automobiles — we are increasingly moving toward a model of 'producing locally and consuming locally,' with a growing export potential," he noted.
Consumer rights protection issues were also addressed, particularly the situation involving vehicles imported into the country in violation of existing legislation. In 2023–2024, there were cases where citizens of Kazakhstan purchased such vehicles and were ultimately left without both the car and their invested money. The reasons for the lack of proper regulation vary. According to Kairat Yelamanov, President of the Union of Industrial Investors of Kazakhstan, certain incidents raise serious concerns regarding transaction transparency and safety assurance.
"Last year, there were recorded cases where dozens or even hundreds of vehicles were imported under the guise of being single units for personal use. One individual, for example, imported 793 vehicles. These cars often did not undergo proper testing, which raises serious concerns about their safety. We are calling for stricter control over the safety of imported vehicles and compliance with legislation, which stipulates that an individual may import no more than one vehicle per year," he stated.
All speakers agreed on the need to strengthen control and regulation of vehicle imports to ensure reliable protection of consumer rights.
At the conclusion of the discussion, all experts expressed confidence in the potential of the domestic automotive industry. Despite existing challenges, participants noted that new opportunities are emerging for the sector. It is important for Kazakhstan not only to assemble vehicles, but to build a sustainable industrial ecosystem—one that is integrated into global supply chains, generates employment, stimulates exports, and contributes to GDP growth.