Škoda Auto is poised to re-enter the Kazakhstan market. The Czech automotive producer has engaged a brand new gross sales and manufacturing accomplice, Allur Firm, with each corporations just lately signing a partnership settlement. 4 fashions might 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 presently lower than one-fifth of the nation’s residents personal a automotive. To faucet this potential, now we have discovered a powerful accomplice in Allur Firm, which might be supporting us with automobile manufacturing and gross sales.”

Klaus Zellmer, Škoda Auto CEO

“Subsequent yr, we plan to open 15 showrooms in main Kazakh cities, reminiscent of Astana, Almaty, Shymkent and Kostanay. We might be providing clients not solely our bestselling Octavia but additionally our globally profitable Kodiaq, Kamiq and Karoq SUVs. The SUV phase is now the second-largest available in the market, and we’re presenting a contemporary and enticing mannequin vary that may resonate with clients 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 autos to clients within the nation. To make sure constantly excessive requirements of customer support, the corporate has engaged a brand new manufacturing and gross sales accomplice for its regional operations. Beginning subsequent yr, autos produced on the factories in Mladá Boleslav and Kvasiny might be assembled for the Kazakh market at a plant operated by Allur Firm in Kostanay and distributed to native dealerships. The mannequin collection out there to clients will embrace 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 presently 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 models in whole inside the subsequent 5 years. With these projections, the automotive producer goals to harness the momentum, concentrating 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 broaden within the Kazakh market. Concerned within the manufacturing and sale of vehicles, industrial automobile elements and spare components, 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