Kazakhstan is planning to establish domestic automotive steel production and expand local auto parts manufacturing as part of its strategy to deepen the localization of the country's automotive industry, with integrated steelmaker Qarmet expected to begin producing automotive-grade steel by 2028, according to a statement from the company.
The initiative was discussed during a government meeting chaired by Olzhas Bektenov, prime minister, who instructed the Ministry of Industry and Construction to prepare, within one month, a comprehensive plan for establishing local auto component production.
Government pushes for greater localization
Prime Minister Bektenov said developing a domestic base for automotive components that meets modern industry standards is a strategic priority for Kazakhstan. He stressed that this will require expanding the range of locally produced materials used in vehicle manufacturing.
According to Bektenov, Qarmet already manufactures special steel grades for buses and trucks at its facilities in the Karaganda region, while the next stage will be to establish production of automotive steel for passenger cars.
Under the current schedule, Qarmet plans to start producing automotive-grade sheet steel in 2028, with commercial production of stamped vehicle body components scheduled to begin in 2029. The planned facility will have the capacity to manufacture at least 100,000 stamped vehicle body sets per year, while locally produced steel is expected to account for at least 75 percent of the raw materials used.
Project aims to strengthen domestic supply chain
The project is expected to create stable long-term demand for higher value-added steel products while reducing Kazakhstan's dependence on imported body panels and increasing domestic value creation within the automotive sector.
Mr. Bektenov described the initiative as strategically important, noting that Kazakhstan had not previously developed automotive steel production despite having sufficient industrial potential. He also voiced support for Qarmet's broader modernization program, saying it has created strong synergies between the country's steel industry and automotive manufacturers.
