17.04.2026
Growth Rates, Partners, Plans: How the Machinery Industry Is Developing in Kazakhstan

The machinery industry has demonstrated one of the fastest growth rates among other sectors. This is a clear sign that more complex and technology-intensive manufacturing is gaining momentum in the country, reports Zakon.kz.

By the numbers: the machinery industry grew by 21.9% at once. Particularly notable is the 29.6% increase in the automotive industry and the 31.3% increase in electrical equipment manufacturing.

According to data from Kazakhstan Automobile Union analysts and the National Statistics Bureau, the new car market grew by 14.4% in 2025 and exceeded the 200,000-unit sales mark for the second consecutive year. Domestically produced cars accounted for 69% of the market.

As experts note, the development of more complex, technology-intensive industries provides a long-term benefit to the economy, as they not only guarantee the creation of new jobs but also generate demand for components, logistics, and services. Furthermore, this demonstrates a gradual shift away from a resource-based economic model.

Therefore, the republic is not resting on its laurels. On April 2, 2026, at the Machine Builders’ Forum, Azamat Panbaev, Chairman of the Industry Committee of the Majilis, announced a review of support measures in the machine-building sector.

According to him, a bill to improve legislation regarding the development of the machine-building industry is currently under consideration in the Mazhilis.

“Support instruments are currently being reviewed. The state is proposing a set of instruments that will be provided on a targeted basis—depending on the depth of processing, the scale, and the financial and economic parameters of the project,” said Panbaev.

Regarding scale. At the same forum, Deputy Foreign Minister Alibek Kuantyrov noted interest from major Korean and American companies in manufacturing auto parts in Kazakhstan and shared some interesting data.

For comparison: In the early 2000s, 75% of foreign direct investment in Kazakhstan was directed toward the oil and gas and metallurgical sectors. Currently, that figure stands at 30–35%, and the flow of capital has shifted course, actively pouring into the machine-building sector in particular. Moreover, more than 5,000 companies are currently active in this sector, a trend the deputy minister viewed as positive.

It was noted that a memorandum of understanding had previously been signed between American and Korean companies, which, if aluminum wheel production is localized in Kazakhstan, are expected to express interest in further deepening cooperation and producing other components for the domestic machine-building industry.

At the same time, the range of metal products could double by 2027.

“Industrial cooperation and clustering are developing in parallel, and the use of products at existing enterprises is expanding. Already today, certain types of steel are being used in the automotive industry,” said Olzhas Saparbekov, Deputy Minister of Industry and Construction.

It should be noted that the country’s leading automaker remains Allur, which has been diligently developing the industry for 22 years—the official distributor and dealer of such recognizable brands as Kia, Chevrolet, JAC, Jetour, Skoda, Geely Galaxy, and Li Auto.

For example, according to last year’s results, the plant in Kostanay produced more than 92,000 vehicles. Allur’s market share in Kazakhstan stood at 54%, confirming the company’s status as one of the country’s main industrial drivers.

In addition, in 2025, the company expanded its model lineup: it launched small-scale serial production of the Jetour X70 PLUS crossover, as well as the Geely Galaxy EX5 EM-i hybrid model—the first hybrid vehicle produced in the country.

And in March of this year, the company shared another piece of good news—the launch of local production and sales of MG (Morris Garages) vehicles in the domestic market.

The implementation of the project was a continuation of the strategic partnership between Allur and SAIC Motor—China’s largest automotive corporation and one of the global industry leaders. An agreement to begin cooperation was reached in 2025 during the 21st Shanghai International Auto Show, where the parties agreed to develop the MG brand in Kazakhstan and localize production.

The grand opening of the new MG Allur dealership in Almaty took place recently, in early April. Distinguished guests from China attended the event.

The new dealership is a modern facility that fully complies with MG’s global standards. The showroom offers customers a wide range of services: from exploring the model lineup and test drives to maintenance and post-warranty service. The facility will enhance the customer experience and expand access to MG vehicles for Kazakhstani consumers.

Overall, Allur, acting as the brand’s official distributor and manufacturing partner in Kazakhstan, is developing a dealership network of ten centers: in Almaty, Astana, Shymkent, Karaganda, Kostanay, Pavlodar, Semey, Kokshetau, and Aktobe.

By the end of the year, the network is planned to expand to 24 dealerships.


Source: zakon.kz