Due to sanctions, there is a shortage of cars and parts imported from Russia, and the Kazakh market is being seized by Chinese automakers.
Astana Auto, which has dealers across Kazakhstan, announced last week that it would soon start importing cars from Chongqing-based manufacturer Changan. Under a distribution agreement dated August 11, Changan will start arriving directly in Kazakhstan from its Chinese factory as early as September. In addition, Haval and Chery entered Kazakhstan in April last year and at the end of last year respectively, and JAC and Lifan have been selling locally for many years.
According to the Kazakhstan Automobile Business Association, Chinese brands will account for 3.4% (more than 4,000 vehicles) of new car sales in the country in 2021, more than doubling from the previous year. In the first seven months of 2022, the sales volume of the four Chinese auto brands is already equivalent to the total of the whole of 2021. The growth appears to be fueled not only by competitive prices, but also by advertising campaigns aimed at dispelling doubts about the quality and safety of Chinese goods.
Today, Kazakh consumers have few choices. Popular brands in Japan and Europe are simply not available. Many models are made in Russia, but the Russian factories have been forced to stop production due to international sanctions. This has led to a severe shortage of cars and parts in Kazakhstan. In addition, Russian authorities banned the export of various components, causing prices to soar.
Manufacturers in Europe have rerouted their shipments through Turkey, bypassing Russia, adding significantly to transit times and costs, said Alexeyev, editor-in-chief of an Almaty-based auto magazine. "Regular maintenance on my Volkswagen Tiguan, including simple oil, filter and spark plug changes, has gone up 1.5 times this year to $400, which is unbelievably expensive," Alexeyev said. It is unlikely to end anytime soon, we can only count on the supply of components from China.” Alexeyev believes that if war-related shortages persist, Chinese producers will continue to increase sales in Kazakhstan.
Local dealers are preparing for this scenario. Shamgonov, director of FAW Group, Chery's official dealer in Kazakhstan, said that in the next five years, Chinese brands will occupy a leading position in the domestic market of Kazakhstan, "This is not due to low price dumping, but due to quality and selection. Now, the minds of consumers have been turned upside down and they believe in Chinese brands.”
