ASTANA MOTORS RESULTS IN 2022
In 2022, Astana Motors celebrated its 30th anniversary. The company has grown from the first specialized Toyota showroom in Kazakhstan to a manufacturer of global car brands.
Today, Astana Motors has 4,190 employees, 2 plants for the production of cars and commercial vehicles, 17 global car brands, including 15 distributions (14 automobile and 1 motorcycle) and business partners worldwide, 26 dealerships and a leasing company.
Despite the difficulties caused to the local automobile industry by a shortage of electronic components and disruption of supply chains during the pandemic and the global crisis resulting from the geopolitical situation, Kazakhstan has seen a steady increase in vehicle sales. According to the Association of Kazakhstan Automobile Business (AKAB), 123,778 new vehicles (including commercial machinery) were sold in the country, up 5.2 % compared to 2021 (117,599 vehicles).
In 2022, Astana Motors sales grew by 35.8 % and reached 47,553 new cars (34,982 in 2021), including 40,920 units sold in the domestic market and 6,613 units exported to the CIS countries.
The company’s positive sales performance is attributed to the high demand for cars in Kazakhstan, successful negotiations between Astana Motors and foreign car component suppliers that solved logistics problems, as well as the expanded range of Chinese brands offered by Astana Motors.
In 2022, Astana Motors paid more than 70 billion tenge in taxes to the country’s (republican and local) budget.
The number of employees increased by 22 % in 2022 versus 2021. Astana Motors has fostered a professional school for the automotive industry and now employs more than 4,000 personnel in automotive engineering, sales, finance, information technology, training, leasing, services, etc.
The company places special emphasis on the role of human talent in the corporate culture, developing employees within the company through the implementation of its own programs and training methods, as well as international programs.
Hyundai as the Best-Selling Brand in Astana Motors’ Portfolio
Hyundai came as the top seller in Astana Motors’ portfolio in 2022. Hyundai sales in Kazakhstan achieved 28,864 units in 2022. This is 27 % growth compared to 2021 (22,729 units).
Hyundai sales in Uzbekistan achieved 6,613 units in 2022. This is 48.6 % growth compared to 2021 (4,448 units).
Infographics. Top 10 Models of Astana Motors’ Portfolio in Kazakhstan in 2022
The geopolitical situation in February 2022 disrupted chains of supply from Europe, making it impossible to import BMW cars along the previous routes.
Astana Motors held negotiations with its partner and arranged the supply of BMW cars to Kazakhstan from several new directions. In 2022, 962 vehicles (BMW, Mini and Motorrad) were sold (down 24 % compared to 2021).
The Subaru brand sold 654 vehicles in Kazakhstan (down 14 % compared to 2021).
In September 2022, British Motors Kazakhstan, a subsidiary of Astana Motors, became an authorized distributor of Jaguar Land Rover in Kazakhstan and resumed car deliveries to dealerships in Almaty and Astana directly from the UK in December 2022.
Car sales growth today is largely driven by Chinese brands, which are massively growing in popularity due to advanced car technology, cost/performance ratio and availability from dealers as cars are delivered directly from Chinese plants to Kazakhstan. Astana Motors’ portfolio includes the top Chinese brands such as Chery, Haval and Changan.
The Chery brand made a breakthrough in sales in the second half of 2022 and ranked 6th among the top 10 most popular car brands in Kazakhstan at year-end. During the first year of operations in the country, authorized dealers sold 4,464 Chery crossovers.
In August 2022, Silkway Auto Kazakhstan, a part of Astana Motors, signed a distribution agreement with Changan International Corporation, one of the largest automotive groups in China. Sales of Changan cars started in September and reached 245 units by the end of the year.
Haval Motor Kazakhstan, a part of Astana Motors, also showed positive performance in terms of new car sales (1,500 units versus 1,210 units in 2021), expanded the scope of cooperation with Great Wall Motor (PRC) and became an authorized distributor of the TANK brand.
In addition, Astana Motors dealers offer flexible lending programs, which also had an effect on the sales growth in 2022.
Sales of Astana Motors’ Brands in 2022 (Units)
Passenger Car Production
Despite the shortage of semiconductors, a positive trend can be observed in the production volume of the Hyundai Trans Kazakhstan plant and in the sales of car brands offered by Astana Motors.
In 2022, the Hyundai Trans Kazakhstan plant, a subsidiary of Astana Motors, made 37,205 vehicles (up 43 % versus 2021 (25,977 units)). Of these, 82 % was delivered to the domestic market, and the rest was exported to the CIS countries.
The Staria, i30 and Bayon were added to the range of produced cars. At present, Hyundai Trans Kazakhstan produces 9 Hyundai models, including the Tucson, Accent, Sonata, Elantra, Santa Fe, Palisade, Staria, i30 and Bayon.
In 2023, the company plans to increase its capacity to 50,000 vehicles per year by expanding the production area and installing new equipment.
The plant employs over 1,200 personnel. Employees are actively involved in making efficiency improvement proposals for the plant.
The average salary at the production facilities of Astana Motors is 360,000 tenge.
Manufacture of Commercial Machinery
In 2022, Hyundai Trans Almaty, a subsidiary of Astana Motors, manufactured and sold 1,020 units of commercial machinery. The production growth was 37 % compared to the previous year (744 units).
Last year, the Hyundai Trans Almaty plant expanded production and launched a completely knocked-down (CKD) production line with body welding and painting for the Golden Dragon passenger and school buses.
Hyundai Trans Almaty was founded in 2011 under a memorandum of understanding and effective cooperation between Astana Motors and Hyundai Motor Company.
The plant makes a wide range of vehicles: specialized commercial vehicles for public utilities and private organizations, including passenger and school buses, critical care vehicles, flatbed trucks, insulated and commercial vans, refrigerators, dump trucks, garbage trucks, fire trucks.
In January 2023, Hyundai Trans Almaty began assembling equipment to start the production of Hyundai Mighty light trucks using the CKD method with welding and painting. The launch of mass production is scheduled for March 2023.
Production Development Plans
The main news of the domestic automobile industry in 2022 was the start of construction in the industrial zone of Almaty of a full-cycle multi-brand plant, a subsidiary of Astana Motors, for the production of cars from Chinese car giants Haval, Chery and Changan. The start of construction was marked by the President of Kazakhstan, Kassym-Jomart Tokayev.
In 2023, Astana Motors will especially focus on industrialization, development and deepening of production.
Astana Motors is now building a technological cluster in Almaty’s Industrial Zone where Hyundai, Chery, Haval, and Changan as well as Hyundai components will be produced.