KIA plant in Kazakhstan's Kostanay region to produce first car in summer of 2025

ASTANA. Sept 10 (Interfax) - The KIA plant in Kazakhstan's Kostanay region will produce its first test car in July 2025, the Kazakh president's press service said.

President Kassym-Jomart Tokayev visited the construction site of the KIA automobile plant on Tuesday. "Construction of the facility began in October 2023, with plans to produce the first test car in July 2025," the press service said.

Kim Dae Ki, CEO of Kia Qazaqstan, said the plant would be launched in October 2025, initially producing the Sorento model and the updated Sportage model from January 2026.

The $200 million project is approximately 80% funded by foreign direct investment. The plant's initial capacity is projected to be around 70,000 vehicles per year, creating 1,500 new permanent jobs.

The production will feature advanced technology for efficiency and environmental sustainability, including 70 robots for welding, painting, and assembly lines.

President Tokayev was also briefed on plans for a component cluster adjacent to the new plant, with the construction of local components hub already underway. Officials from KCC Corporation and Seoyon E-Hwa said their companies were ready to establish production facilities in Kazakhstan.

In August 2023, the Kazakh-South Korean joint venture Kia Qazaqstan was established, with the expectation of launching full-cycle production at the new Kia plant by 2025. In April, it was reported that KIA planned to create an auto component production facility in Kazakhstan. Kia vehicles have been assembled in Kazakhstan since 2021 at the SaryarkaAvtoProm plant (a subsidiary of the Allur Group) in Kostanay. In January 2023, small-scale CKD production of the Kia Sportage model began at the Allur plant in the Kostanay region, with President Tokayev attending the launch ceremony.