In recent years, metallurgy, machinery manufacturing, and oil refining have become the main drivers of economic growth in Kazakhstan, reducing the country’s dependence on raw material exports. In 2024, it was officially announced that the manufacturing sector had surpassed the extractive sector in terms of its contribution to GDP for the first time, indicating an increase in the share of high-tech industries. This event served as a key indicator of the country’s economic diversification.
A Comprehensive Approach: The Foundation of the Industry’s Development
By the end of 2025, it was noted that the manufacturing sector maintained positive momentum, remaining one of the key sectors of the economy: the manufacturing sector’s share of GDP reached 12.7–13%, while the mining sector’s share declined to 11.9–12% over the same period.
According to the Ministry of Industry and Construction, “the machinery sector is showing particularly strong growth. Production of motor vehicles increased by 17.5%, agricultural machinery by 18.1%, electrical equipment by 16%, and output of computer and electronic equipment grew by 50%.”
This shift in focus and changes in the contribution to GDP did not occur in a single year—this trend began in 2020, when the manufacturing sector’s contribution to economic growth was already evident by the end of 2020–2021.
The main contributors to manufacturing growth were metallurgy (ferrous and non-ferrous), mechanical engineering, the chemical industry, and the production of construction materials.
By the end of 2025, Kazakhstan’s machine-building industry had demonstrated significant growth, with production volume reaching 5.7 trillion tenge, confirming its role as a key sector of the manufacturing industry. The driver of this record growth is the automotive industry, where output exceeded 2.3 trillion tenge with the production of 171,100 vehicles.
This phenomenal development of Kazakhstan’s machine-building industry was the result of a comprehensive state policy, primarily the implementation of industrial and innovation development programs (since 2009) and the Comprehensive Plan for the Development of Machine Building through 2028. In addition, key success factors include structural reforms, attracting investment, establishing SEZs, and a competent, well-thought-out industry development strategy focused on localization, export support, the creation of a full production cycle, import substitution, and technological progress.
Several key components have also contributed to this process: the transition from simple large-component assembly to the creation of full-fledged production cycles (especially in the automotive and agricultural machinery sectors), preferential auto loans, leasing, and tax incentives for manufacturers; the development of export potential — entering the markets of neighboring countries, which confirms the competitiveness of products; the creation of industrial zones where businesses receive a ready-made platform to launch operations; and more.
As a result, the industry ceased to be a “raw materials appendage” and began to generate high added value. For example, in 2025, Kazakhstan began producing more than ten new types of products that had not previously been manufactured in the country. Among them are locomotive components, turbine parts, membrane elements for water purification, medical glucometers, and Pure-Pak cardboard packaging for liquid products, the production of which will allow for a complete replacement of imports.
The country also plans to establish production of new types of machinery and industrial products — dump trucks, motor graders, front-end loaders, transformers for renewable energy, as well as hydrogen and sodium sulfate.
In addition, the Association of Kazakhstan Machinery Industry hosts an annual important and significant event to discuss the industry’s development, bringing together government officials, business representatives, and experts—the Kazakhstan Machine Builders Forum. It serves as a discussion platform for specialists from various sectors of the machine-building industry, ministries, government agencies, analysts, economists, and politicians to address pressing issues facing the sector.
The Forum of Kazakhstan Machinery Manufactures is, first and foremost, a working platform for developing cooperative ties. Here, potential partners find one another and draw up agreements. It is a kind of trade fair for industrial enterprises, where companies find suppliers, related businesses, and partners with whom it is easier for them to enter various markets.
Participants discuss challenges, identify development paths, define strategic directions for import substitution and increasing export potential, address legislative issues, and examine the competitiveness of Kazakhstan’s machine-building industry in domestic and foreign markets, among other topics. Most importantly, “on the spot” and “immediately,” with the participation of specialists from relevant agencies, many systemic problems can be resolved and strategic recommendations for the development of domestic production can be formulated.
Based on this collective and scientific approach, a conceptual vision for the industry is formed, and steps are defined for the implementation of the Comprehensive Plan for the Development of Mechanical Engineering.
Export Potential of the Machinery Industry
Overall, the machinery industry has become one of the fastest-growing sectors of the manufacturing industry, increasing its total volume by 5.9%.
This is a natural result of the comprehensive and productive work in Kazakhstan’s machine-building sector in recent years. As a result, the share of machine-building in the manufacturing industry reached 19%, with an increase in the launch of new plants and capacity expansion: 33 new industrial facilities were launched in 2025. Notable projects include a multi-brand plant in Almaty (Chery, Haval, Changan) and the Kia Qazaqstan facility in Kostanay.
Furthermore, in 2024–2025, Kazakhstan successfully expanded exports of machine-building products. For example, locomotives (electric and diesel) are manufactured to high standards and exported to CIS countries, with Russia, Tajikistan, Azerbaijan, and Turkmenistan remaining key partners, while Kyrgyzstan and Belarus are promising markets. Starting in 2024, exports of diesel locomotives to Mongolia began, and in 2026, Kazakhstan plans to supply 600 electric buses to Pakistan worth $108 million.
The Evolution series diesel locomotives (TE33A) from JSC “Locomotive Manufacturing Plant” (100% Wabtec) and electric locomotives from LLP “Electric Locomotive Manufacturing Plant” (Alstom) are key products of Kazakhstan’s railway engineering industry.
Batteries (Bars brand and others) have long been a hallmark of Taldykorgan, holding strong positions not only in neighboring countries but also in EU and Middle Eastern markets—they hold a significant share of the CIS market and successfully compete in Europe thanks to production automation. Bars batteries (manufactured by Kainar-AKB LLP) were actively exported in 2024–2025 to CIS countries (Russia, Belarus, Kyrgyzstan, Tajikistan, Uzbekistan), China, the UAE, European countries (Germany, Poland), and some African countries.
In the field of IT and automation, there is also a strong foundation in this area: exports of traffic control systems and traffic light installations demonstrate the potential of our engineers in creating Smart City solutions for foreign metropolises. Kazakhstan exports traffic management systems (TMS) and traffic light systems primarily to Central Asian countries (Uzbekistan, Kyrgyzstan, Tajikistan), as well as to Russia. Products, including “smart” traffic lights and software, are geared toward modernizing transportation infrastructure within the framework of the Eurasian Economic Union (EAEU) and regional cooperation.
Kazakhstan has also begun exporting intelligent management systems (IT products) to more distant countries, such as the UAE, Saudi Arabia, and Singapore, which may include software for “smart cities.”
Against the backdrop of growing domestic production and high demand, domestic cars are considered promising due to their reduced dependence on import prices, which is why negotiations are underway with the EU. To this end, plants are transitioning to completely knocked-down (CKD) assembly, which includes welding and painting of car bodies — a process critical for meeting international standards. The plants plan to achieve 100% welding and painting for all passenger car models, which will allow them to officially be designated “Made in Kazakhstan” for duty-free trade.
In addition, the Astana Motors Manufacturing Kazakhstan multi-brand plant is expected to launch or reach full capacity in 2026, producing up to 90,000 Chery, Haval, and Changan vehicles annually, specifically for export.
Such diversification makes the country less dependent on commodity prices and creates jobs in high-tech sectors.
The reorientation of Kazakhstani automobile exports toward European Union countries and Central Asian states is linked to a sharp decline in shipments to Russia (a 3.5-fold decrease by early 2026). The traditional Russian market is becoming less accessible due to an increase in the scrap fee in Russia and Kazakhstan’s retaliatory measures, as well as the growth of local production in Russia.
The bulk of exports consists of KIA (28%), Hyundai (27%), and Skoda (23%) models, specifically the Tucson, Sportage, and Kodiaq.
It is worth noting a production record: by the end of 2025, Kazakhstan’s automotive industry set a historic record, producing 171,144 vehicles (+18%), which indicates high demand. Domestic production showed steady growth, and total output, including related industries, approached 209,000 units.
Challenges in Implementing Industrial Robotics
Machine building is a high-tech industry. The development and production of products such as locomotives, transformers, computers, or other equipment require the use of cutting-edge scientific knowledge and technologies.
Indeed, we face the urgent task of technical renewal, modernizing nearly half of the existing machine-building enterprises, and retooling them so they can produce competitive products. To address these challenges, the Government of Kazakhstan is allocating significant funds this year for the implementation of digital technologies, investments, and the modernization of production.
This is because scientific research and the implementation of the latest technologies ensure the competitiveness of the domestic machine-building industry not only in the domestic market but also create the conditions for modernizing production processes, increasing their efficiency, and the transition to knowledge-intensive production is now critically important for Kazakhstan.
The integration of science and manufacturing plants offers three key advantages: product complexity—the same locomotives and transformers with digital control (“smart” equipment) command higher prices and have a longer service life; automation and new materials reduce production costs, making our exports more attractive. It also fosters human capital development: working with high technologies requires a new generation of engineers, which in turn drives reforms in education and science.
Therefore, the country is actively developing the concept of full automation in modern manufacturing, with fully automated workshops based on the integration of robotics, IoT sensors, AI analytics, and unified digital platforms, where robots perform welding, painting, and maintenance of CNC (computer numerical control) machines, “Factories without people.”
Kazakhstan is already taking steps toward localizing high-tech brands (such as Alstom and Wabtec), but the next stage should be the creation of its own R&D centers (research and development facilities).
And the domestic machine-building industry is transitioning from simple assembly to high-tech manufacturing, demonstrating steady growth in recent years. The key factors behind this qualitative leap have been robotization, the launch of “digital factories,” and the deepening of localization.
Miami Solar LLP has implemented a robotic solar panel assembly system. Plans are underway to establish a facility for the production of humanoid robots with integrated AI.
In connection with technological modernization, eight new professions requiring expertise in robotics and automation were introduced in the industry in 2025.
However, there are still many questions and challenges in this area. As Meyram Pshembaev, Chairman of the Board of the Association of Kazakhstan Machinery Industry, wrote in his article “A Responsive State: A New Impulse for the Development of Domestic Machine Building” in Kazakhstanskaya Pravda: “Higher productivity by 2029 can be achieved through the introduction of industrial robots into production, as clearly demonstrated by the experience of leading countries. For example, in Singapore, there are more than 1,000 industrial robots per 10,000 workers, and in South Korea, over 800, whereas in Kazakhstan, there are only 7 robots. The pace of introducing robotic systems into the country’s manufacturing sector also remains extremely low. For instance, in 2023, only 100 robotic systems were introduced in Kazakhstan, compared to 290,000 in China.
On October 29, 2024, at a government meeting, Prime Minister Olzhas Bektanov supported the initiative of the Association of Kazakhstan Machinery Industry to develop industrial robotization. The Ministry of Digital Development, Innovation, and Aerospace Industry, in collaboration with the Ministry of Industry and Construction, has developed a Roadmap for the Development of Robotics in Kazakhstan for 2024–2029. However, the approved Roadmap does not provide for conceptual solutions, including specific issues regarding the financing of industrial robotics implementation.
To double its GDP by 2029, Kazakhstan needs to do more than simply rely on traditional sources of growth; it must focus on developing high-tech and digital industries that can become drivers of sustainable economic growth.
This set of issues, which must be addressed at the highest government level, primarily involves specific questions regarding the financing of industrial robotics implementation.
At the same time, the government must create conditions that encourage businesses to actively invest in innovation and new technologies, increase the role of private investment in research, from assembly to production localization and the gradual expansion of output. Given the 12.9% growth in the machine-building sector at the start of 2026, support for automation is critical to enhancing competitiveness and expanding production. Subsidies are also needed for training programs for specialists in modern robotics.
Global experience in increasing the volume of high-tech production and actively attracting investment in robotics and mechanical engineering dictates the adoption of government measures—these include tax incentives (tax exemptions for the payback period of robotic systems), preferential lending, investment protection, R&D development, subsidies for equipment purchases, and the creation of special economic zones to expand the production of high value-added goods.
Source: qazaquni.kz