In recent years, Kazakhstan’s automotive industry has become one of the fastest-growing sectors of the economy. A Kazinform correspondent investigated how much tax revenue it generates and whether car manufacturing is profitable in the country.

The automotive industry’s share of the economy

The Ministry of Industry and Construction reported that, as of the first half of 2025, the automotive industry’s share of the engineering sector reached 40.9%, and 7.28% of the manufacturing sector. For comparison: in 2018, these figures were only 19.2% and 1.98%, respectively. It is noted that over six years, the auto industry’s share in the machinery sector has grown 2.1-fold, and in the manufacturing sector—nearly 3.7-fold.

There are eight automobile plants in Kazakhstan

1. SaryarkaAvtoProm LLP (Kostanay) — manufactures passenger cars, buses, trucks, and specialized vehicles.

2. Hyundai Trans Kazakhstan LLP (Almaty) — production of passenger cars.

3. Hyundai Trans Auto LLP (Almaty) — assembles trucks, buses, and special-purpose vehicles.

4. SemAZ LLP (Semey) — manufactures trucks and special-purpose vehicles.

5. Daewoo Bus Kazakhstan LLP (Semey) — bus manufacturing.

6. KamAZ-Engineering JSC (Kokshetau) — manufacturing of trucks, buses, and special-purpose vehicles.

7. QazTehna LLP (Saran, Karaganda Region) — buses and trucks.

8. Uralskagroremmash JSC (Uralsk) — production of trucks and special-purpose vehicles.

According to manufacturers’ data, production volume in 2024 reached 145,000 vehicles. For comparison: 32,000 units were produced in 2018, and 93,000 in 2021. That is, the figure increased 4.5-fold over six years and exceeded the 2021 level by 56%. Further production growth is expected in 2025.

New plants in Almaty and Kostanay

Two major projects are scheduled to launch in 2025:

- A multi-brand plant in Almaty to manufacture CHANGAN, Chery, and GWM vehicles with an annual capacity of up to 120,000 vehicles. Launch: third quarter of 2025.

- A KIA plant in Kostanay with a capacity of 70,000 vehicles per year. Launch: fourth quarter of 2025.

All current manufacturers in the industry are private companies, which also demonstrates the business community’s interest in the segment.

Jobs and Social Impact

In 2024, approximately 6,500 people were employed at the eight existing automotive plants. By mid-2025, the number of jobs had increased to 7,600. With the launch of two new plants in Almaty and Kostanay in 2025, over 5,000 additional jobs will be created.

Moreover, the economic impact is broader: one job in the automotive industry generates up to five or six jobs in related sectors—logistics, service, parts sales, and other segments.

Tax Revenues

According to the State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan, in the first half of 2025, eight automakers paid 16.9 billion tenge to the budget in taxes and mandatory payments.

- in 2024, revenues amounted to 36.2 billion tenge,

- in 2023 — 47.5 billion tenge,

- in 2022 — 27 billion tenge.

Despite certain fluctuations, the industry remains a stable source of revenue for the budget.

Cost of New Cars

According to data from the Kazakhstan Automobile Union (KAS), prices for new cars in Kazakhstan in June 2025 were as follows:

- sedans — starting at 7.3 million tenge, average price 11.1 million;

- crossovers and SUVs — starting at 7.3 million tenge, average price 16.8 million;

- minivans — starting at 11.6 million tenge, average price 18.9 million.

The final price of a car depends on the selected trim level.

Auto expert Alexey Alekseev notes that the price range for new cars in Kazakhstan is between 7 and 23 million tenge, with an average market price of about 13 million tenge.

At the same time, according to KAS President Anar Makasheva, more than 2.5 million cars over 20 years old are still in use on Kazakhstani roads, many of which do not meet modern safety and environmental standards. In this regard, the government is developing mechanisms to renew the vehicle fleet, drawing on international best practices.

Is Car Manufacturing Profitable in Kazakhstan?

According to Anar Makasheva, President of the Kazakhstan Automobile Union, the auto industry is profitable not only in terms of taxes but also as a sector that creates skilled jobs, stimulates the development of related segments, introduces modern technologies, and raises the level of workforce training.

— Growth in production volumes directly impacts the country’s GDP. The industrial production index for the first seven months of 2025 stood at 118.6%, with the automotive industry accounting for 40.7% of the machinery sector. Moreover, these are direct investments: in 2024 alone, they amounted to 189.8 billion tenge. And this means guaranteed model line updates, infrastructure development, and industry modernization,” noted Makasheva.

According to her, investors are actively entering the segment: joint ventures are being established, component production is being localized, and new technologies are being introduced.

The head of the CAO emphasized that, unlike retail, automotive manufacturing is a low-margin business with high costs. The main factor in profitability is the scale of production.

“Investments in the auto industry are long-term investments that are difficult and take a long time to pay off. But with a stable sales market, the industry becomes profitable for both the state and investors,” emphasized Anar Makasheva.

Auto expert Alexey Alekseev noted that automobile production in Kazakhstan is beneficial for the economy, but for the manufacturers themselves, this business remains capital-intensive and requires a long payback period.

— Investments in the creation and development of car plants are very large. At the same time, no one can accurately state the manufacturers’ revenues—data on profitability is not published in the public domain, so it is difficult to objectively assess their financial results, he emphasized.

Quality and Localization Level

All vehicles entering the Kazakhstani market—whether domestically produced or imported—must comply with the safety requirements and technical standards established by the EAEU technical regulations.

The President of KIA emphasized that Kazakhstani factories operate a multi-tiered quality control system: each stage of production is accompanied by an inspection, a dedicated quality control department is in place, and finished vehicles undergo a full cycle of testing before entering the market.

“Brand owners’ representatives are often present at the plants to monitor compliance with technological processes and conduct regular inspections. At the same time, the technical regulations themselves are becoming stricter depending on the government’s priorities. If an increase in accident rates is observed, mandatory safety features are introduced, such as an increase in the number of airbags.” If the focus is on the environment, standards for fuel and vehicle emission classes are tightened. This approach is widely applied in other countries as well,” noted Makasheva.

Localization remains an important area of development—the creation of an auto-component base and the expansion of manufacturing operations within the country. For the state, this means investment and technological growth; for investors, it means lower costs and expanded markets; and for consumers, it means new opportunities and affordable cars.

Auto expert Alexey Alekseev added that consumers initially had doubts about the quality of Kazakhstani cars, but practice has shown that the quality meets international standards and is comparable to that of the original manufacturers.

Earlier reports indicated that domestic automobile production is expected to increase this year to 149,000 units, a 5% rise compared to 2024.

This year, the Agency for the Regulation and Development of the Financial Market of the Republic of Kazakhstan adopted a resolution stipulating that when Kazakhstani citizens take out a loan to purchase a new or used car, the debt-to-income ratio (DTI) will not be calculated.