Kazakhstan boosts domestic auto industry

BAKU. KAZINFORM Kazakhstan seeks to further support domestic auto industry, as the country's Development Bank allocated 11 billion tenges to individuals, wishing to purchase cars assembled in Kazakhstan. The funds will be issued at the expense of the National Fund.

Auto loans will be provided through National Bank of Kazakhstan, Eurasian Bank, Sberbank of Russia and Bank Center Credit.

The nominal interest rate should not exceed 4 percent per annum, with annual effective rate (including the cost of insurance and vehicle registration as a pledge) not exceeding 7.5 percent per annum.

Loan term is up to 5 years, the loan currency is the tenge, the cost of one unit of passenger car can be no more than 9 million tenges, the initial fee (if there is any) - no more than 20 percent of the purchased cars’ cost.

Borrowers will be offered 37 models of car brands such as Kia, Toyota, Chevrolet, Skoda, Hyundai and other, which were assembled at local enterprises SaryarkaAvtoProm and ASIA AUTO.

The National Fund of Kazakhstan allocated 26 billion tenge to support domestic automakers.

The January-March 2015 became the fourth quarter of a subsequent reduction of Kazakhstan market volume. Official retailers sold 24 954 vehicles (including commercial cars) according to the results of the three months, which is 26 percent lower than the same period figures in 2014.

Over a 3.7 million Kazakh citizens own vehicles, while there are more than 380,000 registered vehicles in the Astana region alone; every fifth citizen owns personal transportation.

Source: AzerNews