Kazakhstan plans production of automotive body components using local steel

Economy Materials 21 July 2026 10:56 (UTC +04:00)
Kazakhstan plans production of automotive body components using local steel
Gulnara Rahimova
Gulnara Rahimova
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BAKU, Azerbaijan, July 21. Kazakhstan plans to establish production of stamped body components for passenger vehicles using domestically produced steel as part of efforts to increase localization in the automotive industry.

This was announced by Andrey Lavrentyev, Chairman of the Board of Directors of Allur Grou, during a government meeting chaired by Prime Minister Olzhas Bektenov.

The project is planned as a joint initiative involving Qarmet, Allur and Kia Kazakhstan, linking domestic steel production with automotive manufacturing.

"Developing a full-cycle stamping production cycle for passenger cars using Kazakhstani steel will be an important step for the automotive industry. We are developing the Qarmet-Allur-Kia Kazakhstan inter-industry project with other manufacturers, which will integrate metallurgy and automotive manufacturing into a single production chain, similar to bus production in Saran, where Qarmet steel is already used," Lavrentyev said.

According to Lavrentyev, a similar approach is already being applied at the Saran bus assembly plant in the Karaganda region, where steel produced by Qarmet is used in the manufacturing of vehicle chassis and structural components.

Under the current plans, Qarmet is expected to complete preparations for the production of automotive-grade sheet steel by 2028. The launch of localized stamping operations and serial production of vehicle body components is scheduled for 2029. The planned facility is expected to have a production capacity of at least 100,000 stamped body sets per year.

According to the project parameters, locally produced steel is expected to account for at least 75 percent of the raw materials used in manufacturing the stamped components. The initiative is aimed at expanding domestic supply chains for the automotive sector and increasing the share of locally produced components used in vehicle assembly.

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