Traffic situation in Kazakhstan
Formerly part of the Soviet Union, Kazakhstan's public transportation system is closely related to Russia's public transportation system, and was heavily reliant on the Russian bus system, which has persisted for many years since the collapse of the Soviet Union in 1991.
Kazakhstan has large oil and gas reserves. The strong demand for these natural resources in many of its neighbouring landlocked countries poses a great challenge to the transportation needed to export oil and gas.
Starting from this year, Kazakhstan's buses have adopted the slogan of green travel. All buses on the road have been changed to green. In addition, the demand has gradually shifted to low-floor structures and alternative fuels such as CNG. There are a handful of local bus assemblies in the country.
In Almaty, 50 percent of Almaty's 18.5 million people live in the city center, according to the local automobile industry association. Alternatives to public transport are very limited, so this will stimulate demand for better and more frequent bus services.
In addition, in the Kazakhstan region, the banking, financial and legal systems have issued a series of favorable policies to support the development of the vehicle industry and the import of spare parts and vehicles. It is estimated that over the past fifteen years or so, more than $40 billion in foreign investment has been poured into Kazakhstan in the oil, gas and mining industries. The transportation needs of employees in these industries are also extremely huge.
Status of the local auto industry in Kazakhstan
1. Without its own local auto brand, the government encourages auto assembly and production. The development of Kazakhstan's auto industry is mainly based on vehicle assembly and parts matching, and there is no local auto brand.
2. The largest automobile market in Central Asia, but the scale of automobile production is small. Kazakhstan is the largest automobile market in Central Asia, and there are only 11 automobile assembly companies in Kazakhstan. Passenger cars account for the largest share of the vehicle production structure at 83%. Truck manufacturing is the second largest share in the overall vehicle structure with an average share of 13%, and bus manufacturing occupies the third place with an average output value of 2% in 2017-2018. Kazakhstan has a large proportion of second-hand cars. At present, nearly 80% of passenger cars in Kazakhstan are over 10 years old. Old vehicles provide a broad market for auto parts and after-sales services.
3. Commercial vehicles, medium and light commercial vehicles are more popular with local consumers. Kazakhs prefer small and compact off-road vehicles, which account for less than 18%, standard off-road vehicles (5.2%), and large off-road vehicles. Off-road vehicles and pickup trucks accounted for 2.4 percent and 0.6 percent, respectively.
The light commercial vehicle segment here includes light vans, including minivans N1 (but not exceeding a fully loaded mass of 3,5 tons), low tonnage vans and minivans, and minivans with 17 passengers occupancy in the M1 category vehicle and M2 (but not more than a fully loaded mass of 3,5 tons). Sales of light commercial vehicles have grown significantly since April 2017. Official dealers sold 4,253 LCV vehicles this year, 6.19 percent higher than the 2009 result. Compared with the same period last year, the index in December last year increased by 22.81%, which is equivalent to 463 vehicles sold.
4. Comparing with the import data of complete vehicles, it can be seen that most countries have switched from importing complete vehicles to assembly sales. Vehicle sales in Russia and South Korea have fallen sharply, and vehicle sales in China have steadily increased slightly.
Vehicle Policy in Kazakhstan
1.Car loan preferential policies
In order to expand domestic auto sales and protect the domestic market, in 2015 and 2016, the government successively issued preferential policies for auto loans and allocated funds for subsidies. The maximum amount is 900,000 tenge (about 17,000 RMB).
2.The import of right-hand drive vehicles is prohibited
In order to reduce traffic accidents, the Kazakhstan government has introduced a bill to completely ban the import of right-hand drive vehicles (this is good news for Chinese car exports).
3.Car scrap and disposal tax and assembly fees imposed on domestic car manufacturers and importers
Locally produced vehicles can apply to the government for a refund of scrap disposal tax after they are sold to consumers, while imported vehicles cannot enjoy the refund policy.
Kazakhstan Vehicle Access Policy
1. Tariff
(1) Reduction of import tariffs on vehicles
In April 2017, according to Order No. 58 of the Ministry of Economy of Kazakhstan:
a. The tariff of new gasoline vehicles with a displacement of 1.5-3.0L and diesel vehicles with a displacement of less than 1.5L (including 1.5L) is reduced to 19%.
b. For gasoline vehicles with a displacement of less than 1.5L and a displacement of more than 3.0L and diesel vehicles with a displacement of more than 1.5L, the tariff will remain unchanged at 15%.
(2) Cancel the 17% import tariff on light electric vehicles
In September 2016, the Eurasian Economic Commission decided that since August 31, 2017, the Eurasian Economic Union will cancel the import tariff of light electric vehicles, from the original 17% tax point to the electric truck tariff of less than 0,5 tons from 15 % down to 5%.
2. VAT: 12%
3. In terms of vehicle access, Kazakhstan uniformly follows CUTR certification, also known as EAC certification, in accordance with Union regulations TP TC 018/2011.
Eurasian standards and Russia, Belarus and Kazakhstan CUTR certification
Resolution No. 877 of the Eurasian Economic Union Commission stipulates that the certification project is based on TP TC 018/2011, which stipulates the list of certification projects, relevant ECE regulations, and member state regulations and standards (including: GOSTR standards and STB standards). Among them, GOSTR and STB are reference standards, and the content is technical requirements and reference test methods.
The Eurasian Economic Union vehicle access requirements are implemented in accordance with TP TC 018/2011 "Wheeled Vehicle Safety Technical Regulations". Motor vehicles entering the Russian Belarusian market are subject to CUTR certification.
At present, the domestic automobile industry in Kazakhstan is developing rapidly. Whether it is trucks, cars or SUVs, the output and sales are growing steadily. The future development prospects are optimistic, and it is worthy of the focus of domestic auto manufacturers.
In addition, Chinese companies can consider relying on the preferential tariff policy between the Central Asian Community to build factories in Kazakhstan so as to radiate the markets of neighboring countries of Kazakhstan.
