Škoda Auto is poised to re-enter the Kazakhstan market. The Czech automotive producer has engaged a brand new gross sales and manufacturing associate, Allur Firm, with each corporations just lately signing a partnership settlement. 4 fashions can be assembled domestically in Kazakhstan beginning in early 2024.

“Kazakhstan presents an thrilling alternative for Škoda Auto as our internationalisation accelerates. This marks a return to a market with promising potential, as at present lower than one-fifth of the nation’s residents personal a automotive. To faucet this potential, we have now discovered a powerful associate in Allur Firm, which can be supporting us with car manufacturing and gross sales.”

Klaus Zellmer, Škoda Auto CEO

“Subsequent 12 months, we plan to open 15 showrooms in main Kazakh cities, similar to Astana, Almaty, Shymkent and Kostanay. We can be providing prospects not solely our bestselling Octavia but additionally our globally profitable Kodiaq, Kamiq and Karoq SUVs. The SUV phase is now the second-largest out there, and we’re presenting a contemporary and enticing mannequin vary that may resonate with prospects within the area.”

Martin Jahn, Škoda Auto Board Member for Gross sales and Advertising

Relaunch of Škoda Auto’s operations in Kazakhstan

Škoda Auto operated in Kazakhstan between 2005 and 2021, delivering over 23,000 automobiles to prospects within the nation. To make sure constantly excessive requirements of customer support, the corporate has engaged a brand new manufacturing and gross sales associate for its regional operations. Beginning subsequent 12 months, automobiles produced on the factories in Mladá Boleslav and Kvasiny can be assembled for the Kazakh market at a plant operated by Allur Firm in Kostanay and distributed to native dealerships. The mannequin sequence accessible to prospects will embody the Kodiaq, Kamiq, and Karoq SUVs alongside the bestselling Octavia.

Contributing to Škoda’s internationalisation technique: Steady market with excessive progress potential

In Kazakhstan, the place at present solely 186 vehicles are registered per 1,000 residents, Škoda Auto sees appreciable progress potential in its automotive market. The general market gross sales quantity is forecast to surpass 200,000 items in whole inside the subsequent 5 years. With these projections, the automotive producer goals to harness the momentum, focusing on a sustained market share of 5% between 2024 and 2028.

The re-entry into the Kazakh market aligns with Škoda Auto’s ongoing internationalisation technique. In September 2023, the model celebrated its official launch in Vietnam. Moreover, it’s strategically main the Volkswagen Group’s ‘Model Group Core’ within the ASEAN area, aiming to leverage progress alternatives for the Group. Furthermore, the Czech automaker strategically oversees the Volkswagen Group’s actions within the dynamically rising Indian market.

Manufacturing and gross sales partnership with the Allur Firm

Škoda Auto has partnered with the important thing strategic ally, the Allur Firm, to relaunch operations and develop within the Kazakh market. Concerned within the manufacturing and sale of vehicles, business car parts and spare elements, together with offering automotive servicing in Kazakhstan, Allur Firm boasted a market share of 44.4% in 2022, making the established automotive group the biggest within the area.

SOURCE: Škoda