KIA Motors Corporation has officially begun operations at its new car assembly plant in northern Kazakhstan.
The KIA Qazaqstan facility is expected to reach a production capacity of up to 70,000 vehicles annually once fully operational, The Caspian Post reports, citing The Times of Central Asia.
The plant was inaugurated by President Kassym-Jomart Tokayev through a teleconference.
The decision to construct the plant in the Kostanay region was made in 2023. Located in the Kostanay industrial zone, the facility occupies nearly 63 hectares. More than $245 million has been invested in the project, which has created 1,500 jobs. The primary markets for the vehicles will include Kazakhstan, other Central Asian countries, and member states of the Eurasian Economic Union.
Speaking during the Astana-Kostanay teleconference, President Tokayev highlighted the strategic importance of the new plant to Kazakhstan’s machine-building sector. He noted that KIA Sportage production had already begun in Kostanay two years earlier, and that this new phase, launched under an agreement with KIA Corporation, marks the start of full-scale vehicle manufacturing.
Tokayev thanked KIA Corporation President Ho-Sung Song and the company for their cooperation, emphasizing the value of high localization in production. He stressed that increasing the share of domestically sourced components is vital for Kazakhstan’s industrial development.
Experts estimate that each job at the plant will create up to five or six additional jobs in logistics, services, and infrastructure.
“This is not just a linear expansion, but a major step toward creating a full-fledged industrial cluster, where small and medium-sized enterprises will have real opportunities to grow,” Tokayev said. “This approach will strengthen the industrial capacity not only of the Kostanay region, but of the entire country. I am confident that the KIA plant will become a new growth point for Kazakhstan’s automotive industry.”
He added that the plant’s launch will support the renewal of Kazakhstan’s vehicle fleet and contribute to improved road safety.
In 2024, the machine-building sector attracted over $540 million in investment, 2.5 times more than in 2023. Since the beginning of 2025, $331 million has already been invested in the industry. Last year, Kazakhstan produced over 145,000 vehicles, with assembly facilities operating in Astana, Almaty, Semey, Uralsk, Kokshetau, Kostanay, and Saran. The sector currently employs more than 10,000 people.
“The launch of KIA Qazaqstan will give a powerful boost to the technological modernization of the entire industry. In the future, the company will be able to manufacture new car models and enter foreign markets with products that meet international standards. Kazakhstan is ready to contribute to the development of the global automotive industry,” Tokayev concluded.
