Always ready: KazakhExport on domestic car industry support

The opening ceremony of the Joint Kazakhstan-Uzbekistan Auto Assembly Line of new Chevrolet brand models was held at the Kostanai Auto Plant.

Within the framework of the teleconference, A. Mamin and A. Aripov, the Prime Ministers of the Republic of Kazakhstan and the  Republic of Uzbekistan, officially commissioned the Joint Project of  SaryarkaAvtoProm LLP and UzAuto Motors JSC.

Several new Chevrolet car models will be assembled at the new production line - Damas, Labo, Trailblazer, Malibu, Spark, etc. The affordable final cost of the Chevrolet Damas bus and the Chevrolet Labo truck will be about 3 million tenge, which increases their attractiveness for small and medium-sized businesses in the trade, logistics, agricultural and other sectors.

"At the first stage, the production volume will be 26,000 Chevrolet vehicles. The Project is export-oriented, car deliveries are planned to neighboring countries, and this is about 13,000 units. The entire export volume will be realized with the support of EIC KazakhExport JSC, which gives us the opportunity to enter new markets and thereby increase sales. Through this cooperation, we have the opportunity to provide partners in foreign markets with a deferred payment for a long period and at an affordable cost. SaryarkaAvtoProm LLP with the support of IEC KazakhExport JSC has been supplying products outside of Kazakhstan since 2017," says Syrym Semeybayev, the Director of SaryarkaAvtoProm LLP.

Car industry is one of the dynamically developing sectors of the economy of Kazakhstan. This year, the total output of the car industry is planned to increase to 100 thousand cars per year.

IEC KazakhExport JSC actively supports the development of Kazakhstan's engineering industry. Since the beginning of 2020, the Company has financed a letter of credit for the supply of 1,064 JAC cars to Uzbekistan in the amount of $16.5 million, produced jointly with Uzavtosanoat JSC at SaryarkaAvtoProm LLP site, the domestic car manufacturer.

In the fourth quarter of last year, with assistance of such a company’s tool as export credit insurance, a deal was implemented to supply 400 Kazakhstan-Uzbekistan Ravon Nexia R3 cars worth $3.4 million to the Russian Federation. Cars were also assembled at the Kostanai Auto Plant.

“We see the great potential of the domestic engineering industry and are ready to provide comprehensive financial, insurance and non-financial support to manufacturers, expanding the geography of exports, increasing the volume of supplies, and subsequently stimulating sales,” says Ruslan Iskakov, Chairman of the Management Board of IEC KazakhExport JSC.

Recall in January of this year EIC KazakhExport JSC signed an Agreement and implemented a deal to expand the export markets of the SaryArkaAvtoprom LLP, the Kostanai car manufacturer.

For reference:

Export Insurance Company KazakhExport JSC (part of Baiterek NMH JSC) is a subordinate organization of the Ministry of Trade and Integration of the Republic of Kazakhstan for non-primary goods and services export promotion. The mission of the Export Insurance Company KazakhExport JSC is to  support the rise in exports of non-primary goods, works, and services in  priority sectors of the economy and to develop the practice of  financial-insurance and non-financial support of Kazakhstan enterprises.