Skoda to re-enter Kazakhstan market, plans local assembly of four models

Local assembly of the Kodiaq, Kamiq, Karoq and Octavia to begin in early 2024 in association with Allur Company; coinciding with the start of production, the first showrooms in the new corporate design will open in major Kazakh cities.

Autocar Pro News Desk By Autocar Pro News Desk calendar 11 Oct 2023 Views icon4304 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp
Skoda to re-enter Kazakhstan market, plans local assembly of four models

Skoda Auto is poised to re-enter the Kazakhstan market. The Czech car manufacturer has engaged a new sales and production partner, Allur Company, with both companies recently signing a partnership agreement. Four models will be assembled locally in Kazakhstan starting in early 2024.

The model series available in Kazakhstan will include the Kodiaq, Kamiq, and Karoq SUVs alongside the bestselling Octavia. These vehicles, produced at Skoda factories in Mladá Boleslav and Kvasiny, will be assembled for the Kazakh market at a plant operated by Allur Company in Kostanay and distributed to local dealerships.

Involved in the production and sale of cars, commercial vehicle components and spare parts, along with providing car servicing in Kazakhstan, Allur Company had a market share of 44.4% in 2022, making the established automotive group the largest in the region.

Skoda had previously operated in Kazakhstan between 2005 and 2021, delivering over 23,000 vehicles to customers in the country.

Klaus Zellmer, CEO of Skoda Auto, commented: “Kazakhstan presents an exciting opportunity for Škoda Auto as our internationalisation accelerates. This marks a return to a market with promising potential, as currently less than one-fifth of the country’s residents own a car. To tap this potential, we have found a strong partner in Allur Company, which will be supporting us with vehicle production and sales.”

Martin Jahn, Skoda Auto Board Member for Sales and Marketing, added, “Next year, we plan to open 15 showrooms in major Kazakh cities, such as Astana, Almaty, Shymkent and Kostanay. We will be offering customers not only our bestselling Octavia but also our globally successful Kodiaq, Kamiq and Karoq SUVs. The SUV segment is now the second-largest in the market, and we are presenting a modern and attractive model range that will resonate with customers in the region.”

Kazakhstan part of Skoda’s ongoing internationalisation strategy
In Kazakhstan, where currently only 186 cars are registered per 1,000 residents, Škoda Auto sees considerable growth potential in its automotive market. The overall market sales volume is forecast to surpass 200,000 units in total within the next five years. With these projections, the car manufacturer aims to harness the momentum, targeting a sustained market share of 5% between 2024 and 2028.

The re-entry into the Kazakh market aligns with Skoda Auto’s ongoing internationalisation strategy. On September 25, 2023, the brand celebrated its official launch in Vietnam. Additionally, it is strategically leading the Volkswagen Group’s ‘Brand Group Core’ in the ASEAN region, aiming to leverage growth opportunities for the Group. Moreover, the Czech automaker strategically oversees the Volkswagen Group’s activities in the dynamically growing Indian market.

ALSO READ: Skoda targets 5% market share in India by 2030

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