Financial Observation: Deepening cultivation in Central Asia, China's electric vehicle industry chain accelerates' going global '

Editor's note: According to data released by the China Association of Automobile Manufacturers this month, China's new energy vehicle exports will grow rapidly in the first half of 2025, reaching 1.06 million units, a year-on-year increase of 75.2%. Currently, in order to find more growth space, "going global" has become a common choice for many Chinese new energy vehicle companies. As an important automobile export market for China, Central Asian countries have carried out extensive cooperation with China in the field of new energy vehicles. The close bilateral relations, connected infrastructure, and local policy support for new energy vehicles have continuously enhanced the attractiveness of this market with a population of 80 million. More and more Chinese new energy vehicle companies are shifting from simply exporting to deepening their local operations, viewing Central Asia as an important part of their overseas layout.

In the 'world's second coldest capital', new energy vehicles can be seen everywhere in China

The MEGA Silk Road is one of the largest shopping centers in Astana, the capital of Kazakhstan. The Global Times reporter visited this shopping mall during a business trip to the country not long ago. Entering the gate, you are greeted by a white new energy vehicle on display - the Song Plus from BYD, which is one of the flagship models of this Chinese new energy vehicle manufacturer in this Central Asian country.

It's very handsome, isn't it? "Seeing the reporter holding his phone and taking photos around the exhibition car, the young security guard next to him approached and voluntarily shared his evaluation of China's new energy vehicles. BYD, Changan... these brands are very famous in Kazakhstan, and many of my friends choose to buy new energy vehicles from China. China is a global leader in this field

A Global Times reporter found during an interview in Astana that even in this city known as the "world's second coldest capital", new energy vehicles in China can still be seen everywhere: buses shuttling back and forth are manufactured by Yutong Bus, large car sales centers are adorned with huge signs of BYD, Geely, Changan, and occasionally new models of "original imported" brands such as Wenjie and Ideal can be found on the roadside.

According to the website of Diplomat magazine in the United States, the sales of Chinese electric vehicles in Kazakhstan will increase 36 times by 2024. In addition, according to the data released by Khorgos, Xinjiang, as of June 25 this year, 56000 commercial vehicles had left the port, up 21.6% year on year.

Cao Shuang, General Manager of BYD's European Automotive Sales Division in Central Asia, told Global Times reporters that BYD continues to accelerate its expansion into the Central Asian electric vehicle market. Currently, it has established sales and service networks covering major cities in countries such as Uzbekistan, Kazakhstan, and Tajikistan, with cumulative sales exceeding 30000 vehicles.

In addition to passenger cars, China's new energy buses are also optimistic about the prospects of the Central Asian market. At the end of 2019, 100 Yutong E12 pure electric buses successfully arrived in Kazakhstan and were put into operation on the core bus route of Astana, marking Kazakhstan's first large-scale purchase of pure electric buses. Miao Yuan, the manager of Yutong Bus Kazakhstan National Company, introduced to reporters that Yutong has sold over 10000 buses in five Central Asian countries, including nearly 800 new energy vehicles.

Cao Shuang stated that the Central Asian region has demonstrated strong and transformative potential in the new energy vehicle market. Firstly, the government attaches great importance to green transportation and sustainable development, and the green industrialization strategy and investment friendly policies provide a favorable environment for the development of new energy; Secondly, the population structure in Central Asia is young, and consumers' acceptance of intelligent, environmentally friendly, and cost-effective products continues to increase, leading to rapid growth in market awareness. In addition, Central Asia is located in the hinterland of the Eurasian continent and has strategic value in radiating to a wider region. With the gradual establishment of local manufacturing, supply chain, and technology service systems, Central Asia is expected to become an important growth pole in the new energy industry chain.

As Cao Shuang mentioned, the new energy vehicle industry is becoming a driving force for many Central Asian countries to promote energy transformation and sustainable development, receiving strong policy support. The Uzbekistan government has issued policies to reduce and exempt consumption tax, tariffs, and vehicle registration tax on electric vehicles. In February 2025, Uzbekistan announced plans to increase the proportion of green energy to over 50% by 2030 and include new energy public transportation as a core measure for carbon reduction. The capital of Tajikistan, Dushanbe, has set a goal to upgrade all taxis to new energy vehicles by September 1st.

Manufacturing and sales tailored to local practical needs

Among the Central Asian countries, Uzbekistan and Kazakhstan are considered the two most critical markets - the former has the largest population in the region, while the latter is the largest economy. In order to expand the markets of these two countries and create a radiating effect on the entire region, more and more Chinese automobile companies are investing in Central Asia, transforming from simple product exports to technology and full industry chain exports.

In June 2024, BYD's Uzbekistan factory officially began mass production, and currently the factory has produced over 10000 new energy vehicles. Cao Shuang told reporters that BYD has partnered with local suppliers to achieve localized production of 17 types of components. The factory currently has about 1500 Ukrainian employees and has established a systematic training mechanism to help employees master key skills such as assembly, debugging, and testing of new energy vehicles. It is committed to cultivating professional talents in the field of new energy vehicles for the local area.

Yutong Bus has also partnered with Kazakhstan partners to build the QazTehna factory in Karaganda Oblast, which can produce 2000 Yutong buses annually. At present, the factory has a complete process chain including welding, painting, final assembly, and testing, and can independently assemble passenger cars, mining vehicles, and sanitation vehicles.

Miao Yuan said that choosing to cooperate in building a factory in Kazakhstan does have multiple considerations: friendly policies, convenient transportation, and also a natural "extreme cold testing ground". Although it faces many challenges, it is also very conducive to polishing the performance of new energy products in harsh environments.

It is also the wish of many Central Asian countries to achieve rapid development of their own automobile manufacturing industry by leveraging the funds, technology, and experience of Chinese enterprises. A research report recently released by the Kazakhstan Presidential Institute for Strategic Studies stated that "China's investment cooperation with Central Asia is gradually shifting towards high value-added processing industries such as automobile manufacturing and mechanical engineering. Among them, green technologies such as electric vehicle and power equipment manufacturing, as well as the production of key components required for renewable energy, have received high attention

In 2019, China Machinery Import and Export Corporation and Jianghuai Automobile jointly invested in Kazakhstan's automobile production and assembly enterprise Arul Group, which is the first cooperation project in the automotive industry field between Chinese enterprises in Central Asia. In 2024, Arul Group's annual automobile production will exceed 90000 units, accounting for over 60% of the total automobile production in Kazakhstan, and it has achieved the production of pure electric vehicles in the country.

In addition to investing in building factories, Chinese companies are also manufacturing and selling products tailored to local needs and environments that are vastly different from those in China. In 2023, Yutong delivered 20 18 meter long pure electric buses to Astana, which is currently the longest bus introduced in Kazakhstan. This batch of vehicles has a range of about 400 kilometers and can carry 150 passengers at a time, meeting the operational needs of the capital's main bus routes with high passenger volume. The customized design of four car doors significantly improves the efficiency of boarding and alighting during peak hours.

Miaoyuan explained that the climate in Central Asia is relatively extreme, including extreme cold, high temperature, and high dust, which indeed puts high demands on new energy vehicles. Yutong has made corresponding insulation designs for the body and battery compartment of the vehicles delivered to the local area, and installed an independent water heating system to fully cope with the extremely cold winter weather in Kazakhstan.

Miao Yuan stated that "going global" is not a one-time achievement, nor is it based on price competition, but on long-term accumulation of product strength, service strength, and adaptability. We need to focus on research and development, quality, and localization, and take the real needs of our customers as the starting point for innovation. Only in this way can we establish ourselves in overseas markets, stand firm, and go far.

There is great potential for the development of charging infrastructure

Ruslan, a young man from Kazakhstan living in Almaty, purchased a BYD electric car last year. He said, "It's good in all aspects, and it saves a lot of money to drive compared to gasoline cars. I also drive it in winter, and the range is sufficient for my daily use. Moreover, after starting, I don't have to wait for the engine to warm up like a gasoline car, and there is soon warm air, which is great

Although Ruslan praised the advantages of Chinese electric vehicles, he also pointed out some areas that still need to be strengthened, such as the limited distribution of charging stations and the lack of experience and equipment in local car repair shops for repairing electric vehicles. All of these require joint efforts from local governments, enterprises, and Chinese new energy vehicle companies.

Lin Boqiang, Dean of the China Energy Policy Research Institute at Xiamen University, told Global Times reporters that Kazakhstan has included the development of new energy vehicles and charging equipment in the National Industrial Innovation Development Strategy 2025, and is expected to lay out 8000 charging stations by 2030 to create necessary infrastructure for the development of electric vehicles.

According to Lin Boqiang, the current charging infrastructure in Kazakhstan is mainly distributed in Almaty and Astana, with great potential for development and construction. It is suggested that Chinese electric vehicle service companies increase their attention to the Central Asian market and actively cooperate with various parties in the field of charging infrastructure.

Cao Shuang stated that he has noticed that countries such as Uzbekistan and Kazakhstan are accelerating the layout of charging networks in cities and along highways, providing consumers with convenient experiences and creating favorable conditions for the large-scale promotion of new energy vehicles. In addition, the continuous optimization of cross-border logistics and trade facilitation between China and Central Asian countries has significantly reduced the transportation and customs clearance costs of vehicles and components, accelerating the localization of the supply chain and product delivery process.

Under the waves of 'east wind', the potential for deep cooperation between China and Central Asian countries around the electric vehicle industry chain is becoming increasingly significant. According to global market data in 2024, electric vehicles account for 22% of total car sales. Although Kazakhstan has not yet entered the forefront of global electric vehicle penetration rates, its growth momentum has gradually emerged, indicating enormous potential for future development in this field. According to the forecast data released by Boston Consulting Group, Uzbekistan, as a leading automobile manufacturing country in Central Asia, is expected to experience rapid growth in hybrid and electric vehicle sales in the next 3 to 5 years. "We are seeing new players from all over the world setting off a market wave.