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Funds for preferential car loans will be allocated in November of 2015

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The Government approved the allocation of an additional tranche of 10 billion tenge

"Under the state program, there has been allocated the first tranche - 20 billion tenge. 5 billion tenge was spent on financing of commercial vehicles via the "DBK-Leasing" and 15 billion tenge were spent on concessional lending through second tier banks. Today, the three companies if to calculate together have used 87% of disbursed funds, which have been allocated on April 20. By number it is more than 4.5 thousand cars in the framework of applications. We believe that over the next month all the funds from the first tranche of the state program will be used", - said president of the Kazakh Auto business  Association Andrey Lavrentyev at a meeting of the committee of machine building and metal processing NCE RK "Atameken ".

He also said that today the Government approved the allocation of an additional tranche of 10 billion tenge, adding that preferential car loans is a very efficient mechanism.

Head of Engineering Union of Kazakhstan Meyram Begentaev added that at the recent meeting with the Vice Prime Minister of Kazakhstan Bakytzhan Sagintayev also was raised the issue of funding for the industry. "We on behalf of the Engineering Union voiced the following position:  We asked for additional 20 billion for "DBK-Leasing" for further financing of the production of domestic machine-building plants. We asked another 20 billion tenge for leasing of locomotives and wagons. And for January additional 10 billion tenge for car industry. Because if auto business will actively work, it will affect the industry as a whole. This is an important issue", - he said.

Begentaev also raised the issue of the cost of localization of domestic cars. "We all know that as of  2018,  50% of the value of domestic vehicles should be localized. If it doesn’t happen, we won’t be able to sell it to Russia, Belarus, i.e. to EAEU countries. How does situation develop with that?", - he asked Lavrentiev.

"The question is crucial for us. Objectively, we can see how to do localization of 30% in our country, which is achieved by the methods of actual production of vehicles, that is, the presence of welding and painting. As for the specific replacement of automotive components, there is a difficulty: basically, it is the presence of suppliers in Kazakhstan and harmonization of obtaining of international certificates for the products that we will replace. In order for us to put any bolt on the car consistently, we need to pass certain tests of this particular component. Certification is a complex process for our suppliers", - said the head of the Kazakh Auto business  Association.

Lavrentiev said that unfortunately Kazakhstan is still forced to resort to Russian suppliers, whose parts are certified. "If to talk about specific models, a Kostanai enterprise Hyundai, for commercial vehicles can achieve localization of 50%, because there are so many add-ons, which are already made in Kazakhstan and their certification is not required. As for passenger cars, there are difficulties with them. As a result, until 2018, I think that as for Kostanai site, we won’t get more than 3% of automotive components in Kazakhstan. It is in the best case scenario. 17% we will have to get from Russia", - he added.

"The main issue is not that we can’t produce this detail, we can, but its certification process - a huge number of tests for which we do not have the volume. We put the question to the Ministry. We will have to produce some components independently for the primary market - that is, for us, for the production and we have to get it for the secondary market because there isn’t enough volume. If the volume is low, the cost of the parts will be high. We have taken such a decision, we are working on it with the Ministry", - concluded Lavrentiev.


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