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Tuesday, January 28th, 2020

Discussed issues of the development of the country’s automotive market

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Committee member of the Senate Finance and Budget Committee of the Parliament of the Republic of Kazakhstan Sergey Plotnikov during a working trip to East Kazakhstan region visited Straw itelstvo Automobile Plant and JSC “ASIA AUTO Kazakhstan.” The deputy got acquainted with the current status of the construction of the main production buildings the welding and painting workshop, as well as with the progress of the construction of access railway lines.

The company’s management informed the deputy about the measures being taken to attract financing to continue the construction of buildings and the purchase of technological equipment. The issues of developing the automobile market, increasing the availability of cars for residents of the country, stimulating the renewal of the car fleet, and improving the environmental situation in settlements were discussed. High demand was noted among the population and the need to continue and expand the program of preferential car loans.

The launch of the welding and painting workshop is planned in 2021. To date, about $ 80 million of own funds have already been invested, said President of Asia Auto JSC Yerzhan Mandiev. The capacity of the first stage of the plant will be 60 thousand cars per year. It is expected that the level of localization of car production will reach 50%.

Asia Auto Kazakhstan is a joint venture of Bipek Auto Kazakhstan LLP and AvtoVAZ OJSC, on the basis of which a project for the construction of a full cycle automobile production in Ust Kamenogorsk is being implemented. The plant has been under construction since November 2013. The total investment in the construction of facilities for welding, painting and car assembly will be $ 380 million. The key markets for the products of the future production complex will be Kazakhstan, the Siberian and Ural regions of Russia, and the countries of Central Asia.

Source: Mazhilis of the Parliament of the Republic of Kazakhstan

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