Chery Automobile Company and Astana Motors signed a memorandum on deepening car production in Kazakhstan.

China will help deepen the localization of the automotive industry in Kazakhstan. The official Chinese delegation announced it on a visit to Kazakhstan. The delegation was headed by the Governor of Anhui Province, Mr. Wang Qingxian, and the Chairman of the Board of Chery Holding Group, Mr. Yin Tongyue.

The Governor arrived in Almaty to personally inspect the progress of construction of the Astana Motors Manufacturing Kazakhstan multi-brand plant. The government of Anhui Province is the main shareholder of Chery Holding Group, so this project received special attention.

Photo: CEO of Astana Motors Beknur Nesipbaev and President of Chery International Zhang Guibing

During the visit, Chery Automobile Company and Astana Motors signed a memorandum of understanding which involves further deepening of cooperation in terms of localizing spare parts and establishing supply chains.

“China and Kazakhstan are good neighbors, friends, partners, and brothers tied by common borders. Over two years of cooperation with Astana Motors, more than 12,000 Chery cars were sold, making it the number one Chinese brand in Kazakhstan. We are going to deepen our cooperation and introduce more models to the Kazakhstan market. The main task today is the construction of the plant and the development of the Chery car production in Kazakhstan. In the future, we plan to deepen and expand production chains. Chery is an international enterprise. In terms of developing international markets, we always adhere to the principles of participation and contribution and strive to become a corporate citizen in every overseas target market, making Chinese contributions to local employment, tax payment, personnel training and economic development, so as to achieve our common goals,” noted Mr. Yin Tongyue.

Yin Tongyue, Chairman of Chery Holding Group

He also noted that Chery is reviewing the experience of its customers from Kazakhstan and, based on their feedback, is ready to refine the design and technology in its cars.

Kazakhstan has taken a course towards industrialization. As President of Kazakhstan Kassym-Jomart Tokayev emphasized, the most important priority is to increase domestic production. The share of the automotive industry in mechanical engineering reached 44.5 %, compared to 37.5 % in 2022.

“We are located in the Industrial Zone of Almaty, where Astana Motors is building the largest multi-brand automobile plant in our market. The President and Government of Kazakhstan pay a lot of attention to mechanical engineering. Within it, the automotive industry is providing good growth in production, and now we are starting to deepen localization. This multi-brand plant will produce 90,000 cars per year, 60 % of which will be exported to the CIS countries. The ministry appreciates that the entire volume of cars will be produced using the CKD method (completely knocked down production including body welding and painting). As a ministry, we will support this project and cooperation between our countries,” said Shyngys Suyunbaev, Deputy Chairman of the Industry Committee in the Ministry of Industry and Construction of the Republic of Kazakhstan, speaking during the visit of the Chinese delegation.

Nurlan Smagulov, founder of Astana Motors

The founder of Astana Motors, Nurlan Smagulov, emphasized that the Kazakhstan people appreciated the high-tech and high-quality, yet affordable Chery cars, and the number of loyal customers is growing. By the end of 2023, sales of Chery cars will be more than 13,000 units. And for 2024/ more than 20,000 cars are expected to be sold. These impressive results speak of the high quality of the cars and customers’ trust.

“It is important for us not only to sell but also to deepen the production of cars. It is a great honor for us to cooperate with Chery Automobile Company; we highly appreciate the fact that our partners provided us with technology, a license, and the right to produce Chery cars, one of the leaders in the Chinese automobile industry. The construction of the Astana Motors Manufacturing Kazakhstan plant is scheduled to be completed in the fourth quarter of 2024. Pilot production of cars will start in the first quarter of 2025,” said Nurlan Smagulov.

More than 2600 jobs will be created at the Astana Motors Manufacturing Kazakhstan multi-brand plant. The core staff will consist of engineering and technical specialists who will learn from the experience of leading automakers and develop technologies in Kazakhstan.

The plant plans to produce three models of Chery crossovers: the Tiggo 2 Pro, the Tiggo 4 Pro, and the Tiggo 7.

At the end of the visit, members of the Chinese delegation and representatives of the Ministry of Industry and Construction of the Republic of Kazakhstan noted down their wishes on the hood of the Chery Tiggo 7 car. This model is the brand bestseller in Kazakhstan.

Source: forbes.kz