Skoda is expanding its cooperation in Kazakhstan with local partner Allur in a number of areas. The VW-owned brand has signed agreements with local partners for local sales and production as well as training.
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Local assembly of Skoda Octavia, Kamiq, Karoq, and Kodiaq models from SKD (semi-knocked down) kits will start gradually in first quarter.
Among the agreements signed by Skoda Auto and Allur is an MoU, which includes evaluating the feasibility of locally producing vehicles from CKD ((completely knocked down) kits after 2025. If successful, this would lead to a more comprehensive manufacturing process at the production plant, including welding, painting, and final assembly, and would also allow for greater involvement of local suppliers. This collaboration between both companies would support employment in Kazakhstan as well as the Czech Republic. The final feasibility assessment will be completed by the end of 2024.
Martin Jahn, Skoda Board Member for Sales and Marketing, along with partner representatives in Astana, signed key documents shaping the future of their collaboration.
An integral part of the collaboration between Skoda Auto and Allur will be building a network of authorised dealerships rolled out in the new corporate design. The initial showrooms will open in the coming months in the largest Kazakh cities. Customers in Almaty, Astana, Karaganda, and Shymkent will be the first to experience the services of Skoda Auto’s authorised partners. The official market entry and sales launch is slated for the second half of February, while the number of modern showrooms will increase throughout 2024.
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By GlobalDataSkoda and Allur have also committed to working together to strengthen and enhance technical training in Kazakhstan. The foundation of this collaboration will be exchanging knowledge about training young professionals who are preparing for new roles in the automotive industry. Skoda says it has long focused on promoting technical education through the ‘Skoda Auto University’ and its own vocational school, as well as collaborations with dozens of secondary vocational and higher education institutions across the Czech Republic. The support consists of direct material assistance to improve teaching. Skoda Auto also intends to initiate collaboration with the educational sector in Kazakhstan. In line with this plan, the visit to Kazakhstan included meetings with representatives of the country’s leading universities.
Klaus Zellmer, Skoda Auto CEO, said: “Internationalisation is crucial for Škoda Auto, and re-entering the Kazakh market aligns well with our plan, including launching our brand in Vietnam. I am pleased with the rapid progress of our cooperation with our new manufacturing and sales partner in Kazakhstan, Allur.
“We have now signed additional vital agreements, paving the way for assembling Skoda vehicles in Kazakhstan next year and establishing the framework for our future collaboration.”
Martin Jahn, Skoda Auto Board Member for Sales and Marketing, said that Kazakhstan is a highly attractive market for the brand and has ‘significant growth potential, which dovetails perfectly with our internationalisation strategy’. He added: “It was an honour to meet Roman Sklyar, Deputy Prime Minister of Kazakhstan, during my visit and to discuss the current state of the automotive industry in both countries. We also talked about our common interest in supporting Kazakhstan’s technical training alongside Allur, and I presented our strategy for the coming period. Our plan is to progressively begin producing four models in the first quarter, open dealerships in Almaty, Astana, Karaganda, and Shymkent as soon as possible, and officially enter the market and commence sales in the second half of February. Our long-term goal is to achieve a 5% market share by 2028.”
