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Prospects for the Development of Vehicle Assembly Plants of Chinese Automobile Brands in Kazakhstan: An Example of Multi-Sectoral Diversification of the Economy to Increase Its Sustainability

Author

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  • Azhar Serikkaliyeva

    (School of Politics and Law, Almaty Management University, 227 Rozybakiyev Str., 050060 Almaty, Kazakhstan)

  • Irina Makarova

    (Naberezhhnye Chelny Institute, Kazan Federal University, Syuyumbike Prosp. 10a, 423832 Naberezhnye Chelny, Russia)

  • Larisa Gabsalikhova

    (Naberezhhnye Chelny Institute, Kazan Federal University, Syuyumbike Prosp. 10a, 423832 Naberezhnye Chelny, Russia)

Abstract

This article discusses the problems that arise and must be resolved in order to ensure the efficiency and sustainability of Chinese-brand automobile assembly in Kazakhstan. Kazakhstan is shown as a model of an oil-driven economy seeking industrial modernization and the most dynamic car assembly case in Central Asia in the past 5 years. Since the automotive industry development strategies in different countries have various specific characteristics and provide an overview of the main global and regional trends in the development of the automotive industry, the problems of industry development also leverage the accumulated experiences of different countries where government initiatives have fostered the growth of their domestic automotive industry. Although we use standard and well-proven methods of analysis, planning, and forecasting, the novelty of the approach lies in the fact that any new company entering the market and opening a new production facility should focus on maintaining the sustainability of the country’s automotive industry within the framework of the adopted industry development strategy. We have developed such an algorithm for planning a strategy. The blend of traditional methodologies and their adaptation makes the suggested methodology new. We also considered the fact that, due to a lack of knowledge, there are significant challenges when determining whether localizing automobile components is feasible. An assessment of the prospects for the automotive industry in Kazakhstan based on data from open sourcesmade it possible to develop options for possible strategies from which the most appropriate one can be selected. The conclusion chapter presents findings, limitations of the study, and directions for future research. The use of this approach allows for considering the interplay of the factors at the stage of an industry development strategy emerging and establishing long-term plans that take into account the specific characteristics of Kazakhstan’s development.

Suggested Citation

  • Azhar Serikkaliyeva & Irina Makarova & Larisa Gabsalikhova, 2024. "Prospects for the Development of Vehicle Assembly Plants of Chinese Automobile Brands in Kazakhstan: An Example of Multi-Sectoral Diversification of the Economy to Increase Its Sustainability," Sustainability, MDPI, vol. 16(7), pages 1-32, March.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:7:p:2662-:d:1362909
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    References listed on IDEAS

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    1. Hertenstein, Peter & Williamson, Peter J., 2018. "The role of suppliers in enabling differing innovation strategies of competing multinationals from emerging and advanced economies: German and Chinese automotive firms compared," Technovation, Elsevier, vol. 70, pages 46-58.
    2. Yakob, Ramsin & Nakamura, H. Richard & Ström, Patrik, 2018. "Chinese foreign acquisitions aimed for strategic asset-creation and innovation upgrading: The case of Geely and Volvo Cars," Technovation, Elsevier, vol. 70, pages 59-72.
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