Electrifying Kazakh roads: analyzing surge in use of electric vehicles
As the world shifts towards sustainable and eco-friendly solutions, the use of electric vehicles (EVs) is becoming increasingly popular. Kazakhstan is no exception, as the country also witnessed the rise of EVs. In this article, Kazinform News Agency delves into the factors driving the surge in EV adoption, government policies and industry developments.
Global transition
Globally, countries are witnessing the adoption of EVs at an increasing rate. According to the International Energy Agency (IEA), the surge in EV sales occurred against the backdrop of a global contraction in the automotive market, with overall car sales in 2022 experiencing a 3 percent decline compared to 2021.
The combined sales of electric cars, including battery and plug-in hybrid EVs, surpassed 10 million units in 2022, marking a remarkable 55 percent increase compared to 2021. This represents almost half of China's total car sales in 2022.
In a span of just five years, from 2017 to 2022, EV sales soared from around 1 million to over 10 million units. The proportion of electric cars in the overall car market surged from 9 percent in 2021 to 14 percent in 2022, marking a more than tenfold increase from their share in 2017. This staggering growth can be attributed to EV markets catching up in the aftermath of the COVID-19 pandemic.
China, Europe and the United States – the three major markets for electric cars – accounted for about 95 percent of global sales in 2022.
In Europe, electric car sales grew by more than 15 percent in 2022 compared to 2021, reaching 2.7 million units. Despite the somewhat slower growth in 2022, the electric car market in Europe continued to expand amidst an ongoing contraction in overall car markets. Total car sales in Europe decreased by 3 percent in 2022 compared to 2021.
“The slowdown seen in Europe relative to previous years was, in part, a reflection of the exceptional growth in electric car sales that took place in 2020 and 2021 in the European Union, as manufacturers quickly adjusted corporate strategy to comply with the CO2 emission standards passed in 2019,” writes the IEA.
According to Statista, a German online platform specializing in data gathering and visualization, in 2024, the revenue in the market is expected to reach $623.3 billion worldwide. With a steady annual growth rate of 9.82 percent between 2024 and 2028, the market volume may hit $906.7 billion by 2028.
China is, in fact, the biggest player in the global market, as nearly half of all electric vehicles are in China. The country is expected to generate the highest revenue of $319 billion in 2024.
According to the IEA, electric vehicles are “the key technology” in reducing carbon emissions in road transport. Road transport accounts for around one-sixth of global emissions.
Current scenario in Kazakhstan
Kazakhstan, endowed with vast natural resources, is channeling its efforts towards a greener future. Electric cars are becoming more often seen on the roads, though still relatively low compared to other kids of automotive transport.
The Bureau of National Statistics reported on January 23 that the number of electric cars increased by 13.5 times over the year in Kazakhstan. The number of electrically powered vehicles grew from 570 on December 1, 2022, to 7,680 units on December 1, 2023.
In particular, the number of electric passenger cars increased by 16.7 times, from 443 to 7,383 units.
The highest number of electric vehicles is in the city of Almaty, with 4,315 units, followed by Astana with 945 units and Almaty Region with 354 units. The lowest number of electric cars is in the Abai Region, where only 14 electric vehicles are registered.
Simultaneously, the number of electric trucks doubled, increasing from 127 to 262 units. The majority of these vehicles are found in the cities of Almaty (94 units) and in the Almaty Region (17 units).
This increase in the use of EVs is due to the quota that the government provided to Kazakhstan’s citizens, supporting the transition to a more environmentally friendly type of vehicle. The government introduced a quota that exempts electric car buyers from paying customs duties and taxes. As of November 9, 2023, Kazakhstan imported 6,875 electric cars under the quota, according to the data from the Committee of State Revenues of the Kazakh Finance Ministry.
Remaining concerns
Electric vehicles generally have a smaller carbon footprint than gasoline cars, even when considering the electricity consumption involved in the charging process.
Experts highlight that the safety levels of electric cars surpass conventional cars. For instance, in a frontal collision, drivers and passengers are spared from injuries caused by heavy and voluminous components like internal combustion engines (ICE) and gearboxes. Examinations conducted by the American Insurance Institute for Highway Safety (IIHS) reveal that electric vehicles perform effectively in simulated crash scenarios. The added weight from their batteries provides enhanced protection for drivers and passengers. But on the other hand, the increased mass raises concerns among traffic safety proponents regarding potential risks for other drivers.
Among other challenges are the limited charging infrastructure outside major cities and concerns about initial costs that pose hurdles to widespread EV adoption. According to the official data, there are just 112 charging stations across Kazakhstan. Some people even set up the stations on their own.
This, however, raised concerns from the Ministry of Emergency Situations because of the absence of specific regulations in the country.
“The ministry draws attention to the fire hazard characteristics of lithium-ion batteries installed in electric vehicles. International experiences in extinguishing fires involving electric vehicles indicate that lithium-ion batteries may short-circuit, malfunction, and spontaneously ignite and explode,” reads the ministry’s statement on November 22, 2023.
High costs and impracticality
Besides that, electric cars often remain expensive for most of the population. Electric car is a luxury that not many people can afford. As an example, the price for the JAC e-JS4 model starts from 16,890,000 tenge or $37,600.
“Electric vehicles may thrive in major cities today, provided the owner has a personal charging station and a backup gasoline car. In Kazakhstan, an electric car is currently suitable only for urban journeys - work, shopping, daycare, and school. Then you need to recharge. It is better if you have your own charging point; plug it in overnight, and you are ready to go in the morning. You do not have to rely on the availability and functionality of public charging stations. Currently, they are scarce,” said Mikhail Kulishin, organizer of auto journeys and expeditions, and project leader of Autotourist.kz, in an interview with Kazinform.
He emphasizes that, for the majority of people in Kazakhstan, an electric car is impractical. When choosing a new vehicle, people still prefer traditional models. For long-distance travel, only liquid fuel-powered vehicles are considered suitable at present.
“The challenging operating conditions and extensive mileage make electric cars unsuitable for this purpose. We shouldn't forget about the necessary off-road characteristics of the vehicle, including the weight of the car and its off-road capability,” said Kulishin.
According to him, it is unlikely that electric cars will take over a significant share of the market in the next 5-7 years.
Legislative amendments
Besides government incentives, Mazhilis, the lower house of the Kazakh Parliament, adopted the bill on January 17 regarding the popularization of environmentally friendly transport and the development of infrastructure for electric vehicles. Key provisions of the bill include the introduction of the new term - electric charging station, provision of designated spaces for electric charging stations during road design, and the assignment of responsibilities to the authorized body for architecture, urban planning, and construction for developing rules for the design, installation, and technical operation of electric charging stations in residential areas.
Positive prospects
Dinmukhamed Kudaibergenov, an energy expert, expects the demand for electric cars will likely increase in Kazakhstan.
“Thanks to existing incentives such as tax exemptions, utility fee waivers, free parking, and new market offerings due to the emergence of greater alternatives, the demand for electric cars, assuming the purchasing power is maintained, will continue to grow,” Kudaibergenov said in an interview with Kazinform.
He does not see any risks for the energy grid.
“It is essential to consider the growth points of the electric vehicle fleet in the country. As practice shows, the majority is concentrated in major cities like Almaty, Astana, and Shymkent. The increase in electricity consumption by the new niche of electric vehicle owners in the near future will not lead to an electricity deficit. The share of eco-friendly vehicles is still small - less than 5 percent of the total vehicle fleet in the country,” he said.
The popularity of EVs in Kazakhstan is a fact. In November, the Eurasian Intergovernmental Council extended the duty-free import of EVs for an additional two years, until December 31, 2025. Kazakhstan has been allocated a quota of 30,000 vehicles, instead of the previous 15,000.
With this new quota in place and with the rising public awareness of the benefits of EVs, their popularity has all the chances to continue growing.
