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Kazakhstan to Produce and Export Leading Chinese Car Brands

The factory capacity will allow the production of up to 90 thousand cars per year

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Chery
Chery

A full-cycle car manufacturing plant for Chinese brands Chery, Changan, and Haval, is scheduled to be constructed in the Almaty Industrial Zone next year, QazMonitor reports.

According to Astana Motors, Kazakhstan’s leading car distributor will own 100% of the enterprise under a license agreement with Chery Automobile Company, Changan International Corporation, and Great Wall Motor.

"The enterprise will produce the entire volume of cars exclusively through the small-knot method as well as welding and painting the body. The capacity of the multi-brand factory will allow the production of up to 90 thousand cars per year, 60% of which will be for export to the CIS countries," the press service of the company said.

The investment project reflects Astana Motors’ motive to start producing car components domestically following the shortage and subsequent termination of supply from Russia due to sanctions.

The creation of the Industrial Zone in the territory of Almaty is also expected to give impetus to the development of small and medium-sized businesses in Kazakhstan and the training of qualified specialists in the field of mechanical engineering.

President of Astana Group Nurlan Smagulov noted that the new project will create 2,200 jobs that will, in turn, contribute to the opening of up to ten vacancies in other industry sectors.

"Chinese car brands are experiencing rapid technological progress and their popularity in the world is actively growing. We see high potential for business development and are investing about $200 million in organizing the production of high-tech cars of China's leading brands in Kazakhstan," he said.

Smagulov continued highlighting the benefits of the new endeavor for Kazakhstan, citing job experience in machine building, development of car component production, and attraction of foreign investors.

The factory is scheduled to launch operations in 2025.

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