Uncovering the factors contributing to increased car prices in Kazakhstan
In Kazakhstan, the price of a Mercedes "E" class has risen from 2 million tenge to a staggering 3.5 million tenge, while the cost of a 2014 Lada Priora in the middle trim level has increased from 1.5 million tenge to 2.5 million tenge. These significant price hikes have left many potential buyers and sellers feeling disheartened, as the sentiment among those considering a new car purchase or sale is that there is a lack of reasonable prices.
The increase in car prices over the past five years can be attributed to several factors. Kazakhstan has experienced rising inflation, with the current rate at 11.8% in June 2025, indicative of a broader economic environment where prices are rising across various sectors [1]. Additionally, global supply chain disruptions, particularly semiconductor shortages, have impacted the automotive industry worldwide, leading to reduced car production and delivery, causing prices to rise due to reduced supply [2].
Moreover, Kazakhstan's automotive market is heavily reliant on imported vehicles, which can be more expensive due to import taxes and transportation costs. Fluctuations in global markets and trade policies can further increase these costs.
To address the high car prices, several measures have been suggested. Encouraging imports from a broader range of countries could help reduce reliance on specific markets and potentially lower costs through competitive pricing. Investing in local vehicle assembly plants could reduce reliance on imported finished vehicles, potentially lowering costs by avoiding import duties and transportation costs. Implementing subsidies or incentives for electric vehicles or other environmentally friendly options could encourage demand for these vehicles while reducing overall costs to consumers. Enhancing competition by allowing more international brands to enter the market could lead to lower prices due to increased competition among manufacturers.
However, reducing the fee for the recycling levy is necessary but not enough to lower high car prices. For instance, cars of similar condition that could previously be purchased for between 600-700 thousand tenge now cost at least 1.5 million. The high demand for 2020 model cars, coupled with manufacturers' inability to produce a large number of them, has caused a sharp price increase. Even a Toyota Camry 50 model now costs no less than 8 million tenge.
Despite these challenges, many Kazakhstan residents are still holding out hope. Talaybek Keirimbekov, a resident of the city, stated that he has yet to meet anyone who has bought a new car yet. The secondary car market, however, has been boosted due to the increased prices of new cars, providing an alternative for those seeking a vehicle.
References: [1] National Bank of Kazakhstan. (2025). Inflation Rate. Retrieved from https://www.nationalbank.kz/en/statistics/inflation-rate [2] World Bank. (2022). Global Supply Chain Disruptions. Retrieved from https://www.worldbank.org/en/topic/global-supply-chain-disruptions
- The recent surge in car prices could be observed not only in Kazakhstan's general-news but also in the sports section, as the escalating costs have affected various sectors, including luxury vehicles.
- The increase in car prices, which can be traced back to factors such as inflation, global supply chain disruptions, and import taxes, has influenced the sports sector as well, as vehicle costs rise, potentially impacting the purchasing power of athletes or sports clubs who rely on personal transportation.
