Kazakhstan to support local auto industry’s development
Astana, Kazakhstan, Oct. 17
By Daniar Mukhtarov - Trend:
Kazakh Investment and Development Ministry will render all the necessary support in bringing the key global automotive component manufacturers to the country's market, the Vice Minister for Investment and Development Albert Rau said Oct. 14.
He made the remarks in Astana at a roundtable dedicated to the development of the domestic automotive industry.
"The ministry will provide all the necessary support via the KazNexInvest to invite the world's key automotive component manufacturers to Kazakhstan's market," he said.
Rau noted that today the development of the automotive industry in the country is due to that Kazakhstan has no production of automotive components and test bases.
He added that the low localization level hinders the reaching of Kazakh products to the export markets.
"Therefore, the carmakers need to pay special attention to the development of their own base of components," the vice minister said.
Rau said the state policy in this area will be mainly focused on the support to the projects aimed at large-scale production, increasing its localization level and creation of a technical regulation infrastructure.
"Easy credits for construction of workshops and creation of infrastructure, as well as reduced rate finance leases for purchase of technological, logistic and ancillary equipments will be provided for successful realization of the projects," the vice minister said.
The official statistics show that Kazakhstan is rapidly developing the automotive industry. To date, Kazakhstan's automotive industry produces 22 percent of the motor vehicles sold in the country. In this case the localization of production stands at about 30 percent.
"The localization level enhancement is an ambitious purpose, but it is achievable. And the state support is a prerequisite for this," according to Andrei Lavrentiev, the President of the Kazakhstan Automotive Business Association.
He said a separate state program clearly indicating the terms for this industry is needed to invite investors to the development of the automotive components base in Kazakhstan.
"The Kazakhstan Automotive Business Association will undertake the responsibilities in development of recommendations for the government for a further creation of a separate program regarding the automotive components production," he said.