2023 Overview: Hyundai is the leader of the auto market in Kazakhstan
Photo: Hyundai Auto Kazakhstan
According to the Kazakhstan Automobile Union, Hyundai is the absolute leader of the automobile market in 2023. 46,725 various Hyundai models were sold by dealers in 18 cities across the country, as company representatives report.
Over the past five years, Hyundai sales in Kazakhstan have amplified 5.5 times, and the market share has increased from 14% to 23.5%. In 2023, the brand's sales growth compared to 2022 was 62%.
Hyundai's best seller in Kazakhstan is Tucson, followed by Santa Fe, Elantra, Sonata and Bayon as the top five most popular models of the brand. Most of all, Hyundai is preferred by residents of Almaty, Astana, Shymkent, Karaganda and Kostanay, who purchased a total of about 32,000 Hyundai cars out of 46,725 cars sold in 2023.
Photo: Hyundai Auto Kazakhstan
“Kazakhstani people are open to new things, this is a wonderful trait of a client who always looks forward to new products with interest, and this is one of the advantages of Hyundai - a wide range of models, as well as timely updates. Meanwhile, we see brand loyalty when the consumer chooses cars from the model line, remaining loyal to Hyundai. We are grateful to customers in Kazakhstan for choosing Hyundai and for coming back to us for new purchases and services,” KangByunjeong, Coordinating Director of Hyundai Motor CIS says.
According to the official distributor of the brand in Kazakhstan, a significant increase in sales of Hyundai cars in 2023 was facilitated by a campaign aimed at providing favorable conditions for car purchase.
“Last year, together with financial institutions, we developed a number of programs for consumers, and our clients bought 60% of the total amount of cars with the loan program. Kazakhstanis appreciated the opportunity to purchase a new car on favorable terms. For example, Hyundai Finance programs with interest rates starting from 0.1% per annum, down payment from 10% and a loan term of up to seven years have become popular; with a rate of 2.4% on the flagship models Palisade, Santa Fe, Staria, Tucson; as well as a car loan for the i20 and i30 models without a down payment, with a loan term of up to seven years,” Hyundai distribution director in Kazakhstan Marat Smagulov explains.
Partner banks of official Hyundai dealers are HalykBank, ForteBank, KMF, MycarFinance, Bank CenterCredit, Eurasian Bank.
Photo: Hyundai Auto Kazakhstan
The Hyundai distributor in Kazakhstan connects the loyalty of its customers with the history of ownership, when the consumer had the opportunity to experience the reliability of the brand over time, and they return to buy a new car, which means they trust the company and the local manufacturer.
As a customer survey shows, convenient terms of loan programs for purchasing cars are one of Hyundai’s advantages in our market. Kazakhstanis are also attracted to a wide selection of models costing from 7 million 990 thousand tenge, guaranteed quality, security systems, comfort, design, new technologies, high level of service, efficiency in providing maintenance, the availability of original spare parts and the expertise of technical specialists in dealer centers.
“We strive to provide customers with ease of purchase, quality service and worry-free car ownership. The “5 maintenance services as a bonus” program is especially popular among Kazakhstanis, it allows Hyundai car owners undergo free and timely maintenance, and this has a positive effect on the car’s performance and significantly saves the consumer’s budget,” Marat Smagulov notes.
Statistics from the official distributor of Hyundai Auto Kazakhstan are an indicator of the Kazakh consumer’s trust in the brand and the domestic auto industry. Let us remind you that since 2020, Hyundai cars for the Kazakh market have been produced by Hyundai Trans Kazakhstan, a subsidiary of Astana Motors. Over the 12 months of 2023, 48,857 vehicles rolled off the Hyundai Trans Kazakhstan assembly line, production volume increased by 31.3% (2022 - 37,205 units). The line of cars produced by the Almaty enterprise includes 10 Hyundai models: Tucson, Santa Fe, Elantra, Sonata, Bayon, Accent, i20, i30, Palisade, Staria.
In 2023, the company increased its capacity to 50 thousand units per year, the number of plant employees increased to 1,289.
Photo: Astana Motors
The key goal of Astana Motors is to achieve 100% small-unit production by 2027, and Hyundai Trans Kazakhstan will continue to modernize the enterprise in order to gradually transfer all models to a small-unit line with welding and painting. In 2024, the share of small-scale production will be 25% of the total quantity of cars produced.
In addition, the Kazakh company localizes auto components. This year, Astana Motors is launching production of car seats, polyurethane mats, fender liners, mudguards and multimedia systems for Hyundai cars.
Thus, the company is creating a technology park in the industrial zone of Almaty, promoting the development of small and medium-sized businesses, the automobile industry and the formation of a system of qualified personnel in the field of mechanical engineering. By mastering the production of auto components, Astana Motors is deepening localization and developing a cluster economy. Hyundai Trans Kazakhstan is open to cooperation with automotive components domestic suppliers, and these are new opportunities for business to develop in the automotive industry.
The Hyundai Trans Kazakhstan plant increased its production levels in 2023 due to – but not only - successful negotiations between the official distributor and the headquarters of Hyundai Motor Company (Republic of Korea), and as a result, it was possible to increase the quota and expand the geography of supplies of components from abroad for car production in Almaty. Consequently, the shortage of popular Hyundai models, which was previously caused by the crisis associated with the pandemic, semiconductor shortages and geopolitics, has been eliminated.
Today, the Hyundai model range presented on the Kazakh market is available at official dealers in 18 cities, with a total of 23 dealership centers. 14 of them are independent Kazakh entrepreneurs who cooperate with the official distributor and represent the brand in their regions. A large team of official Hyundai dealers includes more than 2,000 employees throughout the country.
Photo: Hyundai Auto Kazakhstan
In 2024, Astana Motors intends to significantly expand the Hyundai dealer network in Kazakhstan in cooperation with SMEs in the cities of Zhezkazgan, Zhanaozen, Turkestan, Rudny and Konaev, where independent dealers will be given the right to officially sell Hyundai products, provide service and warranty maintenance. These are new opportunities for domestic entrepreneurs: to open and develop their businesses, and create jobs.
Thus, the indicators of growth in production and sales, as well as the confident development of the dealer network, indicate that Hyundai has strong positions in Kazakh market, today it is a comprehensive, fundamental brand that has earned people’s trust and has found its way to the hearts of Kazakhstanis.
Source: https://www.nur.kz