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Overview of Kazakhstan’s Automobile Market in 2021

Kazakhstan’s light vehicle sales increased by 27.1% year-on-year to 114,281 units, exceeding 100,000 units for the first time in seven years since 2014. The top sales brand was Chevrolet, going up 2.9-fold to 29,111 units. Automobile production went up 23.3% year-on-year to 92,764 units, setting a record high for the third consecutive year. The country’s largest automaker SaryarkaAvtoProm increased production 49.9% to 60,016 units.

Kazakhstan: Recent Developments

Market Trends

・Light vehicle sales in 2021 increased by 27.1% year-on-year to 114,281 units. It was the first time in seven years since 2014 that sales volume exceeded 100,000 units. - Looking at sales by brand, Chevrolet sold 29,111 units, up 2.9 times year-on-year, rising from second place to the top spot. However, if Chevrolet vehicles, which were sold under the Ravon brand until the previous year, are included, sales increased by 69.5% year-on-year. Hyundai, which held the top spot the previous year, dropped to second place with 18,521 units, up 23.7% year-on-year.

Production Trends

・Vehicle production in 2021 increased by 23.3% to 92,764 units. - SaryarkaAvtoProm increased production 49.9% year-on-year to 60,016 units, while Hyundai Motor, which started operating a passenger car plant in 2020, raised output 3.0-fold to 26,567 units. On the other hand, Azia Avto, which had produced Lada vehicles, ended production in 2020. ・According to Kazakhstan’s Ministry of Industry and Infrastructure Development, production of the Hyundai Ioniq 5 and the Kia EV6 is expected to start in 2022-2023 (announced in November 2021). - Kazakhstan plans to produce 2,000 BEVs in 2022. The plan for 2021 was 1,200 units, manufacturing BEV buses of China’s Yutong Bus and King Long. - As of November 2021, there were 110 charging stations in Kazakhstan.

Policy Trends

・Kazakhstan exempted BEVs from recycling tax on June 4, 2021. - The recycling tax is levied on companies and businesses that produce or import automobiles and automobile parts. The tax amount before the tax reduction was 150 KZT for BEV passenger vehicles.

Political Trends

・In March 2022, President Kassym-Jomart Tokayev indicated in his annual State of the Union address that he is aiming to make Kazakhstan a democratic country that prioritizes the interests of the country and its people. - In addition to prohibiting party activities during the term of office of officials such as cabinet ministers, he cited reform measures including limiting the president's authority and increasing the number of regions. - The reform measures were announced following demonstrations against fuel price hikes in January 2022. As a result, a nationwide state of emergency was declared from January 5 to 19.

Economic Trends

・The GDP growth rate in 2021 was 2.1% year-on-year (Ministry of National Economy, as of April 2022). The growth forecast for 2022 is around 4% (Eurasian Development Bank, as of January 2022).
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