Škoda Auto set to re-enter Kazakhstan market

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.

“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.”

Klaus Zellmer, Škoda Auto CEO

“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.”

Martin Jahn, Škoda Auto Board Member for Sales and Marketing

Relaunch of Škoda Auto’s operations in Kazakhstan
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.

Contributing to Škoda’s internationalisation strategy: Stable market with high growth potential
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.

Production and sales partnership with the Allur Company
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.