Kazakhstan is located in the middle of the Eurasian continent, bordering the Caspian Sea (coastline of 1730 kilometers) in the west, Russia in the north, China in the east, and Uzbekistan, Turkmenistan and Kyrgyzstan in the south.

With a land area of 2.72 million square kilometers, Kazakhstan is the largest landlocked country in the world and the geographical center of Eurasia.

As of the beginning of 2023, the population of Kazakhstan was 19.7668 million, a year-on-year increase of 1.35%.

Kazakhstan is a multi-ethnic country with a total of 140 ethnic groups. Kazakh and Russian are both its official languages.

country profiles

1. Economic overview (2023 data)

In 2023, Kazakhstan's GDP will be US$261.421 billion; per capita GDP will be US$13,136.62.

Kazakhstan's total foreign trade is US$139.833 billion, of which total exports are US$78.674 billion, imports are US$61.159 billion, and a trade surplus of US$17.5156 billion.

China is Kazakhstan's second largest trading partner and largest source of imports. China-Kazakhstan trade accounted for 18.7% of total exports and 27.4% of total imports.

Kazakhstan Automobile Market

Automobile manufacturing is one of Kazakhstan's characteristic industries, and Kazakhstan is also the largest automobile market in Central Asia.

The sales of new cars in Kazakhstan have fluctuated very seriously in the past ten years and are extremely vulnerable to the influence and impact of the external environment. Since 2022, car sales have shown a sharp upward trend, exceeding 170,000 vehicles in 2023, a year-on-year increase of 30%. It is expected that there will be significant growth in the future.

In 2015, due to the fall in Russian oil prices, the ruble depreciated, giving Russian vehicles a competitive advantage. A large number of parallel imports of Russian vehicles into Kazakhstan have impacted new car sales in Kazakhstan.

In 2023, the transaction volume of used cars in Kazakhstan will be 910,000, a year-on-year increase of 0.6%. The main reason for the slow growth is that on the one hand, due to Kazakhstan's highly developed auto finance, consumers can buy new cars with a zero down payment. On the other hand, in recent years, Kazakhstan dealers have imported a large number of high-quality and low-cost new cars made in China, which has further impacted Kazakhstan's local used car market.

Current situation of new energy vehicles in Kazakhstan

The number of electric vehicles in Kazakhstan has increased significantly. As of December 2023, the number of electric vehicles registered has reached 7,680, an increase of 13.5 times in one year. Among them, the number of electric passenger vehicles increased to 7383, an increase of 16.7 times.

It is expected that production will increase to 500,000 vehicles per year by 2026, and will continue to grow at an average annual growth rate of 5.57% between 2024 and 2028.

By 2030, the country's new energy vehicle production will account for 10%, and 8000 charging stations will be added to protect it.

At the same time, the government has introduced a series of policies, such as extending the duty-free import policy for electric vehicles to the end of 2025, allowing consumers to save about 15% of electric vehicle tariffs. In terms of subsidies and tax exemptions, electric vehicle buyers can enjoy various incentives such as tax exemptions and utility fee exemptions to encourage more citizens to switch to electric vehicles.

Current situation of automobile brands in Kazakhstan

In 2023, Hyundai will become the leader with sales of 47,181 units (+58.2%); followed by Chevrolet with sales of 45,807 units (+33.6%); and Kia will rank third with sales of 25,495 units (+76.8%). Chery Automobile's sales rose two places to fourth place, with a total of 12,259 vehicles sold (+174.9%); Jianghuai Automobile's sales rose one place, with a total of 8,750 vehicles sold (+105.1%).

In recent years, Kazakhstan has vigorously developed automobile assembly production. "Golden Grassland" Automobile Industry Company is located in Kostanai Oblast and belongs to the Arur Group, the largest automobile enterprise in Kazakhstan. It will produce 70,000 vehicles in 2022, accounting for 62% of Kazakhstan's domestic automobile production.

In May 2019, China Machinery Import and Export (Group) Co., Ltd., a subsidiary of China General Technology Group, and Jianghuai Automobile jointly acquired a 51% stake in Arur Group.

Risk warning for Kazakhstan's automobile overseas market

1. Export data has declined. In 2024, Kazakhstan's passenger car exports have decreased by nearly 17 times compared with last year. Due to the implementation of the Eurasian Economic Union's new risk management system, starting from April 2024, cars cleared by customs clearance from Eurasian Economic Union countries will no longer have the previously valid preferential conditions when imported into Russia.

2. Insufficient charging facilities Currently, there are only about 110 electric vehicle charging stations in Kazakhstan, most of which are located in major urban areas. With charging options scarce in rural and remote areas, this limited infrastructure prevents electric vehicle owners from making long-distance travel.

3. Individuals are prohibited from importing new cars. Kazakhstan will implement a new policy on automobile imports on December 1, 2024. Vehicles with a production date of less than three years can be imported by companies clearly specified in the ○ ④ С, and individuals do not have this authority. Each person can only import one car a year, and more than one is considered for commercial use. The total tax on imported vehicles by individuals will increase from 27% to more than 42%.

Source: Yangtze River Delta new energy vehicle industry offshore base

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