KAMAZ will produce truck components in Kazakhstan

KAMAZ will produce truck components in Kazakhstan


 

RusAutoNewsCom.- As reported by the company press ofice, an agreement has been signed on the production of Kamaz truck components in Kazakhstan.

An investment agreement has been signed in the presence of the Russian Deputy Prime Minister Yuri Borisov, the Minister of Industry and Commerce Denis Manturov, the General Director of Kamaz Sergei Kogogin and the Deputy Prime Minister of Kazakhstan Roman Sklyar in Naberezhnye Chelny last Friday, proposing the production of components for Kamaz vehicles in Kazakhstan.

Driving axle differentials, axle beams, cylinder blocks and engine heads will be manufactured in Kazakhstan for Kamaz trucks, within the scope of the agreement. The document will enable the Russian car manufacturer to receive tax incentives, lift the export duties and partly reimburse the production facility establishment costs. The agreement puts the Republic of Kazakhstan under the obligation to finance the production of truck components, to provide tax incentives and exemption from export duties, as well as reimbursing part of the expenditures of the investors.

As one may remember, the declaration of intent on the localisation of the production of components had been signed in July 2019. As stated in the document, the factories manufacturing Kamaz special vehicles and the above mentioned components will mainly concentrate on the exports of final products to the CIS countries.

According to Roman Sklyar, Russian products are in high demand in the country. Kazakhstan is one of the traditional export destinations for Kamaz vehicles. Along with the localisation of production, the region will become one of the sales hubs for the company in 2020.

45,208 vehicles have been manufactured in Kazakhstan within the first 11 months of 2019, which is equivalent to a 54.7% year-on-year growth, as reported by Autostat.

According to KazAvtoProm – Kazakhstan Union of Automotive Industry Enterprises – data, car production has increased by 45.2% within the aforementioned period, reaching 39,589 units. 966 buses have been manufactured, following a three-fold rise, in comparison with the same period of the previous year. Truck production has also increased by 3.8 times, with 3731 units.

The sales of domestic car factories has reached 38,987 vehicles since the beginning of the year, indicating a 45.8% growth. As a result, the market share of KazAvtoProm companies has risen to 58.6% from 48.4% last year.