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Vice Minister for Investments on local car making industry

29 october 2014, 13:02
0
Albert Rau. Photo courtesy of ortcom.kz
Albert Rau. Photo courtesy of ortcom.kz

Vice Minister for Investments and Development Albert Rau voiced the latest indicators of the car making industry, a Tengrinws journalist reports.

According to him, for the recent 4 years the number of domestically produced cars has grown 10 times. “We are in line with the plans (…) two models are produced with all the welding and painting done on site. By 2018 the percentage of locally produced services should reach 50% for all cars to be exported. Kazakhstan’s stance is that measures to support the car making industry should mirror those of our partners within the Customs Union [of Kazakhstan, Russia and Belarus]. The range of measures is quite wide. These projects require both infrastructure and favorable loans. Earlier we repeatedly broached the subject of consumer loans; as of today this measure has drummed up support (…) I want to emphasize that the neighboring Russia relies on consumer loans to stimulate the car making industry at times of declines. We should also think of some helpful tools to support the industry”, he said.

The Vice Minister voiced production figures as well. “For the first 9 months of the year, 122 000 cars have been purchased in Kazakhstan, with 78% of them being imported. 50% of the imports are Russian-made cars; however, the share of locally-produced cars is on the rise. There was a time of only Russian-made cars in the local market, followed by a time of predominantly used foreign cars. The market is getting more and more civilized. It is quite natural that Russian-made cars are dominating the market as they face no customs hurdles unlike cars produced in third countries. The task for the domestic car making industry is to get rooted in the local market”, he said.

He emphasized that the domestic car-making industry had been showing a slight growth, whereas in foreign markets the industry had been showing negative dynamics. “The Ministry is drafting a set of measures to support the industry; the list of suggestions is expected to be submitted for the Government’s consideration shortly”, he said.

When asked about possible price change upon accession into the WTO, the Vice Minister said “they for sure wouldn’t be raised”.


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