Škoda 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.
Škoda Auto operated in Kazakhstan between 2005 and 2021, delivering over 23,000 vehicles to customers in the country. To ensure consistently high standards of customer service, the company has engaged a new production and sales partner for its regional operations. Starting next year, vehicles produced at the 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. The model series available to customers will include the Kodiaq, Kamiq, and Karoq SUVs alongside the bestselling Octavia.
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 Škoda Auto’s ongoing internationalisation strategy. In September 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.
Škoda Auto has partnered with the key strategic ally, the Allur Company, to relaunch operations and expand in the Kazakh market. Involved in the production and sale of cars, commercial vehicle components and spare parts, along with providing car servicing in Kazakhstan, Allur Company boasted a market share of 44.4% in 2022, making the established automotive group the largest in the region.