In the first six months of 2025, Kazakhstan’s mechanical engineering sector demonstrated economic growth of 11.1%. Opportunities for further acceleration and unlocking the sector’s additional potential were the subject of detailed discussion at a meeting of the Economic Growth Task Force chaired by Deputy Prime Minister – Minister of National Economy Serik Zhumangarin.

Mechanical engineering is one of the key sectors of the manufacturing industry, accounting for almost 19% of its total volume. The main drivers of growth include the production of automobiles (+12.1%), railway and other transport equipment (+7.1%), agricultural machinery (+1.3%), electrical engineering (+21.5%), computers, electronic and optical equipment (an increase of 1.7 times), as well as the repair and installation of machinery and equipment (+12%).

Automotive Industry: New Plants and Expanded Model Line

The automotive industry accounts for about 41% of the mechanical engineering sector. Today, two automotive plants in the country manufacture brands such as JAC, Chevrolet, KIA, Lada, Jetour, Hongqi, Skoda, Hyundai, and Genesis.

This year, two new enterprises will be launched in Kazakhstan — a multibrand plant in Almaty and a KIA plant in Kostanay. The Almaty plant plans to produce cars under the CHANGAN, Haval, and CHERY brands.

“Thanks to the commissioning of new capacities, the volume of cars produced using small-node assembly technology in the country will significantly increase, which will allow for an expanded model range and strengthen the position of the domestic automotive industry,” said Vice Minister of Industry and Construction Olzhas Saparbekov.

In 2025, Kazakhstan plans to produce 147,824 vehicles. However, as the Vice Minister noted, the industry has all the prerequisites to exceed this target.

Additional growth is possible by optimizing processes related to the issuance of certificates for domestic producers.

Deputy Prime Minister Serik Zhumangarin instructed the Ministry of Trade and Integration to take measures for the prompt issuance of the necessary permits, which will allow for the timely launch of serial production of new models and ensure production capacity utilization.

Railway Engineering: Moving Toward Renewal

The railway sector accounts for 13% of mechanical engineering. In 2024, Kazakhstan produced 125 locomotives and over 2,700 railcars worth a total of 599.3 billion tenge. Today, five manufacturing enterprises operate in this segment, located in Astana, Petropavlovsk, Ekibastuz, and Atyrau.

This year, the “Stadler Kazakhstan” plant in Astana began operations, marking an important step in the transformation of the sector and the expansion of localization.

To encourage rolling stock renewal, the Ministry of Transport has initiated the introduction of restrictions on the operation of railcars with extended service life. The relevant regulatory document has been developed and is undergoing the approval process.

The Deputy Prime Minister instructed the Ministry of National Economy to expedite procedural issues so that the document can be adopted as soon as possible.

Electrical and Household Appliances: Continued Growth

About 9% of the total volume of mechanical engineering is accounted for by electrical products. In 2024, Kazakhstan produced over 270,000 units of household appliances.

Starting this year, Kazakhstan will begin manufacturing televisions and washing machines under the Samsung brand. This is a significant step toward import substitution, increased localization, and expanding the range of products manufactured in Kazakhstan.

Agricultural Machinery: Domestic Manufacturers Meet 90% of Market Demand

Agricultural engineering accounts for about 6% of the sector. Today, 10 large enterprises in Kazakhstan produce self-propelled agricultural machinery. Thanks to the existing preferential leasing program, domestic manufacturers meet up to 90% of the domestic market’s demand for tractors and combines.

Last year, Finnish SAMPO, Chinese ZOOMLION, and American John Deere entered the market and are now strengthening their presence.

In the first half of the year, Kazakhstan produced about 4,000 tractors (+39.3%) and 441 grain harvesters (+64.6%). The annual plan envisions the production of more than 10,000 units of agricultural machinery, which is 27% higher than last year’s figures.

Deputy Prime Minister Serik Zhumangarin instructed that the full range of necessary measures be ensured to maintain sustainable growth rates in mechanical engineering as one of the key sectors of the manufacturing industry and a major driver of the country’s technological development.

#Economy #Engineering #Serik Zhumangarin

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