Investors allocate over 410 billion tenge for localizing auto components in Kazakhstan

Investors allocate over 410 billion tenge for localizing auto components in Kazakhstan

Domestic and foreign investors are directing over 410 billion tenge towards developing an automotive component base in Kazakhstan. The objective of localizing production is to enhance affordability for the population. Geographical proximity to consumers and raw material sources reduces manufacturers’ logistics costs, thereby impacting the final product’s pricing. According to the country’s Ministry of Industry and Construction, localization also reduces risks of supply-related component shortages, a challenge faced by manufacturers worldwide during the pandemic crisis. Kazakhstan’s abundance of natural resources serves as a basis for industrial growth, while its central position in  global supply chain transformations offers opportunities for the automotive industry’s development, experts say. Notably, Kazakhstan is currently implementing projects for manufacturing exhaust systems, bumpers, sandwich panels, multimedia, discs, batteries, and other components. President Kassym-Jomart Tokayev underscored the importance of a consistent transition of  domestic automotive manufacturing to a more advanced production level with an export focus during an extended government meeting. This will serve as an indicator of the high competitiveness of local entrepreneurs.