Kazakhstan, a nation situated in Central Asia, is emerging as a new hub for automotive production, attracting investments from international car manufacturers. South Korea's Kia is at the forefront of this trend, with plans to build a new assembly plant in Kostanay,
near the vicinity of Allur plant,The biggest car manufacturing plant in Kazakhstan. The Kia Sorento is one of the models expected to be produced at this new facility, marking a significant milestone in Kazakhstan's automotive industry.
Kia's Expansion in Kazakhstan:
The new facility launched by Kia in Kazakhstan is an expansion of the brand's existing semi-knocked-down kit assembly line located at the Allur factory.The forthcoming full-scale assembly plant is slated to commence operations with an initial capacity of 70,000 vehicles annually, with plans for expansion to 100,000 units in a subsequent phase. The investment, amounting to KZT120 billion ($250 million), is projected to generate employment opportunities for 1,500 individuals.
Models to be Produced:
According to Roman Glushchenko, the director of new projects at Allur, the forthcoming Kia facility is poised to initiate production with an initial lineup comprising three models: the Sorento, Sportage, and Cerato. These models represent a diverse range catering to different market segments and consumer preferences. Glushchenko also anticipates the introduction of additional models to the lineup in the years ahead, reflecting Kia's commitment to expanding its presence in the region and catering to evolving market demands. The selection of these initial models underscores Kia's strategic approach to leverage its popular and well-established vehicles to establish a strong foothold in the local market. As the automotive industry continues to evolve, the flexibility to introduce new models ensures that Kia remains competitive and responsive to changing consumer trends and preferences. The upcoming Kia facility's production portfolio is poised to contribute significantly to the brand's growth and success in the region.
Potential Export Markets:
While certain vehicles manufactured at the newly established plant could be shipped to the Russian market, given the membership of both Russia and Kazakhstan in the Eurasian Economic Union, Russia is not expected to be the primary focus for vehicles produced in Kazakhstan. The Kazakh government is actively working to establish an environment conducive to attracting increased automotive investment and expanding export destinations.
Conclusion:
The Kia Sorento's inclusion in the production lineup at the new plant in Kazakhstan underscores the country's growing importance as an automotive production center in Central Asia. With the support of the Kazakh government and the potential to access markets within the Eurasian Economic Union, the new Kia plant is poised to contribute to the development of Kazakhstan's automotive industry and create new economic opportunities for the region.
