Society • 28 June, 2018

Domestic manufacturers are ready to set up mass production of electric vehicles — MID

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According to Chairman of Industrial Development and Industrial Safety Committee of the Ministry for Investments and Development Almas Batanov, machine building is a priority sector of the State Program for Industrial and Innovative Development, and the first and second five-year plans. During the years of industrialization, the domestic machine-building industry showed its potential, becoming the core of the Industrialization.

According to Batanov, during the years of the first five-year program of industrialization, engineering has become one of the most dynamically developing industries. The volume of production increased by 2.3 times. The share of domestic engineering in the manufacturing industry grew from 9% in 2010 to 14.8% in 2014.

"In 2015 and 2016, Kazakhstan's engineering industry experienced a difficult phase of development, caused by many external factors. However, since last year there has been a positive growth trend. So, for five months of 2018 the volume of machine-building production increased by 12.2%," he informed.

According to the committee chairman, the automobile production occupies the largest share among the priority sub-sectors in the machine-building industry (16%). Only in 2017, 19,547 cars were produced. In the first five months of this year, the volume of production in the sector amounted to 71.5 billion tenge.

According to Batanov, domestic automakers continue to increase production of cars against the background of market recovery. Last year 1,548 cars were exported.

"At present, one of the world trends is the production of electric vehicles. The first types of electric vehicles have already been tested in Kazakhstan. In the future, domestic producers are ready to launch a serial production of electric vehicles at existing capacities as demand and necessary infrastructure are formed," Batanov said.

Meanwhile, the chairman of the committee also noted the stable dynamics of the production of electrical engineering. At the end of five months, the volume of production in the sector amounted to 44.8 billion tenge. In turn, the volume of agricultural machinery production in Kazakhstan amounted to 19.8 billion tenge. In January-March, the volume of production amounted to 2.5 billion tenge.

"The state is taking measures to support the industry, such as exemption from the payment of value-added tax for agricultural machinery, including vehicles. Also this year it is planned to allocate 13 billion tenge from budget funds for the leasing of combines, tractors and buses,” Batanov informed.

As for railway engineering, according to Batanov, it is one of the sectors of the economy of Kazakhstan, the active development of which has been observed over the years of industrialization. In January-March, the volume of production amounted to 10.6 billion tenge. In January-May, 750 freight cars were produced. By the end of 2019, it is planned to produce 3,000 cars.

In addition, by the sectors of mining and oil and gas engineering in 2017, the volume of production amounted to 65.2 billion tenge. Enterprises of these sectors are focused on meeting the needs of system-forming, oilfield service companies and subsoil users in the country. For example, LLP Maker, which works for Kazakhmys LLP, increased production volumes last year by 40% to 5.7 billion tenge and plans to further increase production volumes by commissioning robotic welding equipment.

The committee chairman emphasized that a new factor in the further development and competitiveness of enterprises is the digitization of production and technological modernization.

"In order to modernize enterprises in traditional sectors and create an effective base industry, this year the ministry is working on the development of measures to stimulate the digitalization of industry," Batanov added.

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