VW Group brand Skoda has announced it is posed to re-enter the Kazakhstan market after partnering with Allur Company, a local distributor.

Local assembly of the Kodiaq, Kamiq, Karoq and Octavia is expected to begin in early 2024, the company said.

Klaus Zellmer, CEO of Skoda Auto, said: “Kazakhstan presents an exciting opportunity for Skoda 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.”

The Czech automaker operated in Kazakhstan between 2005 and 2021, delivering a relatively small number of vehicles to customers, over 23,000.

In the country there are only 186 registered cars per 1,000 residents, but it has ambitions to grow its automotive industry.

Earlier this year it was reported that China’s Zeekr – Geely’s EV brand – had confirmed its arrival in the country, citing that ‘growing customer’ demand in Central Asia made Kazakhstan a ‘key market’ in the region.

Martin Jahn, Skoda Auto Board Member for Sales and Marketing, added: “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.”

Skoda Auto says it sees ‘considerable’ growth potential in Kazakhstan’s 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 automaker aims to target a sustained market share of 5% between 2024 and 2028.