Is perhaps the question how much does the KFS actually need?
Lets say they need tyres for at most a 1000 military vehicles and a 1000 civilian ones?
I'm guessing they're happy for the slaves and peasants to bum around on horse drawn carts with wooden wheels. Then it wouldn't be that improbable for them to either grow enough rubber in hot houses or produce synthetic plastic rubber in sufficient quantities.
They may not be able to make high quality steel, but acceptable firearms have been made from heavier steel for decades. I think the idea of a KFS mini14 weighing a kilo or so more than it's real world competitor and not being capable of full auto to save it's weaker barrel more realistic.
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