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In Kazakhstan, the prices of new cars have seen a significant increase, with a 21.3% rise by the end of June this year. This is according to data from the Central Statistical Committee of the Republic of Kazakhstan. The increase in car prices in Kazakhstan has been more pronounced compared to the EAEU average, with the country's rate of increase being 9.3% for the first half of the year (January-June).
The higher rate of car price increase in Kazakhstan can be attributed to several interconnected factors. Firstly, Kazakhstan has experienced elevated inflation, with the inflation rate accelerating to around 10-12% in 2025. The National Bank has maintained a restrictive monetary policy, including a high key interest rate of 16.5%, to curb inflation. This inflationary pressure contributes to an upward trend in car prices.
Secondly, Kazakhstan faces structural trade imbalances, with increasing imports of machinery and foreign goods. This contributes to the weakening of the tenge currency, making imported cars and parts more expensive. The weaker tenge directly influences car prices.
Thirdly, the costs of maintenance and repairs in Kazakhstan have increased significantly, by over 13% year-over-year. This increase in costs adds to the overall cost of car ownership and indirectly influences vehicle prices in the market.
It's worth noting that while Chinese automakers have aggressively cut prices in their domestic market, this competition has not led to a reduction in car prices in Kazakhstan. This is partly because importers focus on more modern Chinese models priced at mid-range levels, and distributors maintain a balanced pricing approach considering consumer demand and access to capital.
In contrast, car prices in Russia increased by 1.4% over the year, and in Kyrgyzstan, they increased by only 0.2%. Interestingly, in Armenia and Belarus, passenger car prices decreased over the year.
While the rate of increase in non-food goods and services prices in Kazakhstan is the highest among EAEU countries, the data for the number of new cars purchased in Kazakhstan does not provide information on the prices of used cars. The average rate of increase in car prices in the EAEU, excluding Kazakhstan and Russia, was 2.2%.
Despite the higher rate of car price increase in Kazakhstan, the data for the rate of increase in food prices does not indicate a significant increase compared to the EAEU average. This suggests that the increase in non-food goods and services prices in Kazakhstan may be influenced by factors beyond the car market.
In conclusion, the higher rate of car price increase in Kazakhstan compared to the EAEU can be attributed to the combined effects of high inflation, currency depreciation raising import costs, and increased costs of vehicle maintenance. These factors are more pronounced locally compared to the broader EAEU region.
[1] Central Bank of the Republic of Kazakhstan. (2025). Monetary Policy Report. Retrieved from https://www.nationalbank.kz/ru/monetary-policy/monetary-policy-report [2] Kazakhstan Invest. (2025). Kazakhstan's Auto Market: Opportunities and Challenges. Retrieved from https://kazakhstaninvest.com/en/sectors/automotive/ [3] Central Statistical Committee of the Republic of Kazakhstan. (2025). Consumer Price Index. Retrieved from https://stat.gov.kz/ru/indicators/inflation [4] National Bank of the Republic of Kazakhstan. (2025). Exchange Rates. Retrieved from https://www.nationalbank.kz/ru/exchange-rates [5] First Credit Bureau. (2025). Kazakhstan Car Market Report. Retrieved from https://www.firstcreditbureau.kz/ru/reports/car-market-report
The higher inflation rate and restrictive monetary policy in Kazakhstan are contributors to the increase in car prices within the industry, as seen in the Central Bank's Monetary Policy Report. Additionally, the depreciation of the tenge currency due to structural trade imbalances also influences the finance aspect of automotive products, as reported by the Central Statistical Committee of the Republic of Kazakhstan.
