Within the framework of the XII Kazakhstan Machinery Forum, two memorandums of cooperation were signed between Kazakhstani automakers and automotive component manufacturers. The cooperation is aimed at deepening production collaboration, enhancing localization, and implementing modern technologies in the automotive industry.

The memorandums were signed following the panel session "Automotive Manufacturing and Components: From Localization to Export," organized by the Kazakhstan Automobile Union (KAU). At the opening of the session, the President of the Union, Ms Anar Makasheva, emphasized the importance of developing an automotive cluster system and a component base as key conditions for the sustainable development of the industry.

Representatives of government bodies, automakers, component manufacturers, and international technology and research companies took part in the discussion of development trends in Kazakhstan’s automotive industry.

Vice-minister of Industry and Construction of the Republic of Kazakhstan, Mr. Olzhas Saparbekov noted that the automotive sector shows stable growth dynamics: the production volume of vehicles increased from 31,000 units in 2018 to 145,000 units in 2024, with further production growth projected to exceed 160,000 units this year. Moreover the further development of the sector is directly linked to increasing deep localization and expanding exports.

The first memorandum of cooperation was signed between LLP "Almaty Autoparts Production" and LLP "SemAZ." The parties agreed on the supply of automotive seats produced in Kazakhstan to the commercial vehicle manufacturing plant. This agreement will form the basis for further localization of components and the development of national component production.

The second memorandum was signed between LLP "Kainar-AKB" and LLP "Hyundai Trans Kazakhstan." The agreement concerns the supply of batteries produced in Kazakhstan for the needs of the automobile plant in Almaty. The shift to domestic power sources will strengthen the independence of the production cycle and reduce dependence on imports of key component categories.

Both agreements were concluded with the support of the Kazakhstan Automobile Union, which acted as a bridge between the parties and provides a platform for effective cooperation for all players in the automotive industry.

According to the President of the Union, such agreements represent a concrete step towards building full-fledged automotive clusters in the Republic of Kazakhstan, where domestic enterprises will be closely integrated into production chains and capable of competing beyond the domestic market.

"The Kazakhstan Automobile Union will continue to actively support all market participants in establishing long-term partnerships and promoting joint projects both nationally and internationally", - emphasized Ms. A.Makasheva.

BACKGROUND INFORMATION ON MEMORANDUM 1:

LLP "Kainar-AKB"

LLP "Kainar-AKB" is the largest manufacturer of automotive batteries in Central Asia. The enterprise, with a full production cycle, manufactures more than 3 million batteries per year for passenger cars, trucks, agricultural machinery, railway transport, as well as for the needs of the oil and gas industry.

The company's products are sold under well-known brands: KAINAR, BARS, NOMAD, VOJAK, and comply with European and Japanese quality standards. More than 60% of its products are exported to CIS countries and neighboring markets.

Kainar-AKB is a member of international and Kazakhstani industry associations.
The company is also registered in the supplier pool of "Samruk-Kazyna."

Social and environmental responsibility is one of the company's priorities. The plant recycles used batteries, recovering lead, plastic, and electrolyte for reuse.

The company actively implements modern technologies, expands its export directions, and offers partners mutually beneficial cooperation terms, including loyalty programs, sales staff training, marketing support, and warranty services.

LLP "Hyundai Trans Kazakhstan"

The “Hyundai Trans Kazakhstan” passenger vehicle manufacturing plant is located in the industrial zone of Almaty city, at the following address: Almaty, Alatau District, Algabas Microdistrict, Street 7, Land Plot 138/5.

Key figures:

• Total project cost: over 48.5 billion KZT
• Jobs created: more than 1,300 people
• Capacity: 50,000 units per year
• Sales markets: Kazakhstan and CIS countries

The opening of Hyundai automobile production in Almaty is a vivid example of expanding industrial cooperation with one of the world's largest automotive manufacturers, “Hyundai Motor Company”, as well as deepening the fruitful cooperation between Kazakhstan and the Republic of Korea.

The current model lineup of the Hyundai Trans Kazakhstan plant includes eight Hyundai models — Tucson, Mufasa, Sonata, Elantra, Santa Fe, Palisade, Staria, and Custin.
Notably, in the updated Tucson, Mufasa, and Custin models, and starting from 2025 in the Elantra, the multimedia system interface will be available in the Kazakh language.
In 2024, the plant also launched a production line for Genesis premium-class vehicles.
The production of Hyundai Accent and Hyundai Tucson models has been mastered using welding and painting methods (complete knock-down, CKD production), and in the second quarter of 2025, CKD production of another model — the Hyundai Santa Fe — will be launched. The Hyundai Trans Kazakhstan plant includes welding, painting, and assembly workshops, a plastic parts painting shop, and a components warehouse.

From January to February 2025, the welding, painting, and assembly workshops were modernized to increase the production capacity by the small-unit assembly method, enabling increased exports to neighboring countries.

The plant complies with Hyundai Motor Company's standards and holds certifications from such well-known companies as VCA (UK), RDW (Netherlands), and TÜV Rheinland Korea, certifying world-class plants in Europe, the USA, and Asia.

The enterprise covers 40,000 square meters on 15 hectares in Almaty's Industrial Zone. The Hyundai Trans Kazakhstan plant was built using modern global automotive manufacturing technologies and meets environmental standards. It is equipped with the latest South Korean production equipment, installed with the participation of Hyundai Motor Company specialists.

The plant’s production capacity is 50,000 vehicles per year.
In 2022, the plant produced 37,205 vehicles; in 2023, 48,857 vehicles; and in 2024, 45,410 vehicles. Since 2020, the enterprise has produced a total of 165,595 vehicles.

The Hyundai Trans Kazakhstan project has been implemented with the support of the Ministry of Industry and Construction of the Republic of Kazakhstan, the Development Bank of Kazakhstan, the Industrial Development Fund, the Ministry of Foreign Affairs of the Republic of Kazakhstan, KazakhExport, and the Akimat of Almaty.

BACKGROUND INFORMATION ON MEMORANDUM 2:

LLP "Almaty Autoparts Production"

The Almaty Autoparts Production automotive seat manufacturing plant is located in the industrial zone of Almaty, at the following address: Almaty, Alatau District, Algabas Microdistrict, Street 7, Building 142/62.

Key figures:

• Commissioning act: January 2025
• Total project cost: over 4 billion KZT
• Jobs created: at least 65 person
• Capacity: 100,000 seat sets per year
• Sales market: Kazakhstan

Almaty Autoparts Production has commenced the production of automotive seats for the complete knock-down (CKD) assembly of the Hyundai Tucson model at the Hyundai Trans Kazakhstan plant. In the near future, the plant will also launch the production of seats for the Hyundai Santa Fe.

To increase the share of localization in Kazakhstan-made vehicles, the potential clients include:

• Hyundai Trans Kazakhstan (passenger vehicle manufacturer);
• Astana Motors Manufacturing Kazakhstan (passenger vehicle manufacturer);
• Hyundai Trans Auto (manufacturer of trucks and buses — Hyundai, Foton, Golden Dragon) and other plants.

The enterprise covers 5,000 square meters on 1 hectare in Almaty's Industrial Zone. The Almaty Autoparts Production plant was built using modern global automotive manufacturing technologies and meets environmental standards. It is equipped with the latest South Korean equipment, installed with the participation of specialists from Youngsan Glonet Corporation.

The official opening of the plant took place in March 2025. The project was implemented using internal funds.

LLP "SemAZ"

LLP”SemAZ” is a domestic producer of agricultural and commercial vehicles in Kazakhstan. The automobile assembly plant was founded in 2006 in the city of Semey and is part of the "Virazh" Group of Companies.

Products:

• Light commercial vehicles under the "GAZ" brand
• SHACMAN and DONGFENG trucks
• DONGFENG city buses
• URAL off-road and special-purpose vehicles
• DONGFENG off-road and special-purpose vehicles

Production capacity under a two-shift work schedule:

• Tractor production: 3,000 units/year
• Truck production: 10,000 units/year
• Bus production: 1,200 units/year

Development Prospects:

In 2025, SemAZ LLP plans to launch a new plant with an annual production capacity of 12,000 units. The production will include:

• Welding line for LCV, MCV, and HCV cabs
• Painting and cathodic electrodeposition line for LCV, MCV, HCV cabs and YTO tractors
• Assembly line for LCV, MCV, and HCV cabs

Project address: Abai Region, Semey City, 93 Bi-Boranbai Street.

Reference:

The Union of Legal Entities Kazakhstan Automobile Union (KAU)— is a non-profit organization founded on July 21, 2023, in Astana.

KAU includes the following associations:
• Association of Automotive Manufacturers of Kazakhstan
• Association of Automotive Component Manufacturers of Kazakhstan
• Association of Public Transport of Kazakhstan
• Association of Importers of Kazakhstan
• Association of Dealers of Kazakhstan
• Association for the Sale of Used Vehicles of Kazakhstan
• Association of Automotive Experts and Auditors of Kazakhstan (conformity assessment of automotive products)