Auto firms leverage BRI to expand

At Khorgos Land Port of the Xinjiang Uygur autonomous region, a large number of trailers and dump trucks carrying both electric and fuel-powered passenger vehicles are lined up, ready to be exported across the border.

These vehicles are destined for countries participating in the Belt and Road Initiative, such as Russia and Uzbekistan, with a significant number heading to Kazakhstan, where demand for Chinese vehicles is surging.

That is in line with the latest data.

China's vehicle exports to Kazakhstan surged 12.4 percent year-on-year to 36,348 units in the first five months of the year, while the total export value grew by 15.2 percent on a yearly basis to 5.49 billion yuan ($755 million), statistics from the General Administration of Customs showed.

Experts and business leaders said Chinese manufacturers are leveraging the opportunities provided by the BRI to expand their market reach. The export of vehicles, especially environmentally friendly EVs, reflects China's commitment to promoting sustainable development and cutting carbon emissions.

Kazakhstan's fast urbanization pace, expanded road length and young consumers' preference for smart technologies have made these markets more proactive in embracing Chinese EVs, said Wan Zhe, a researcher at the Belt and Road School of Beijing Normal University.

After selling 8,824 vehicles in Kazakhstan last year, Shi Qingke, president of Great Wall Motor's international business unit, said the company is confident about the Kazakh market.

"As China-Kazakhstan economic and trade ties continue to deepen, Chinese automobile brands will have broader prospects and a promising future in the Central Asian country," Shi said.

The Baoding, Hebei province-based company has established 28 dealerships in Kazakhstan, covering 20 major cities. It plans to add new dealerships in Almaty and Astana in the third quarter of this year.

As the number of its vehicles in Kazakhstan has exceeded 1,000 units, leading to significant after-sales service demand, Chinese new energy vehicle startup Li Auto Inc will open its first self-operated service center in Almaty this month.

Passenger vehicle manufacturers are not the only beneficiaries of Kazakhstan's growing demand for new cars.

By 2023, Zhengzhou, Henan province-based Yutong Bus Co Ltd had sold over 5,000 buses in Kazakhstan. The company found that its demand for new energy buses has soared notably in recent years. The Chinese bus maker exported more than 200 new energy buses to Kazakhstan in 2023 alone.

Li Qingwen, board chairman of Chaoyang Long March Tyre Co Ltd, a Chaoyang, Liaoning province-based tire manufacturer, said this has further driven the company's tire exports to Kazakhstan.

The Chinese company shipped tires worth 2.96 million yuan to Kazakhstan in 2023. In the first half of 2024, its export value to the country soared 35 percent year-on-year, reaching 2.54 million yuan.

Northeast China's Liaoning province saw its vehicle exports to Kazakhstan jump 408 percent to 386 units during the January to June period, statistics from Shenyang Customs showed.

China's automotive industry, particularly new energy and intelligent connected vehicles, along with its charging infrastructure, supply chain systems and related standards, are at the global forefront, said Xu Haidong, vice-chief engineer of the China Association of Automobile Manufacturers.

Eyeing more exchanges and joint development between China and Central Asian countries in the automotive sector, Xu said that the Beijing-based CAAM is also actively promoting the establishment of a vehicle export base in Khorgos. The preparatory work for this facility is currently underway.