PSA to Build, Distribute Peugeot LVs in Kazakhstan

VIENNA – Peugeot vehicles will be assembled at the AgromashHolding plant in Kostanay, Kazakhstan, starting in June.

PSA Peugeot Citroen and AgromashHolding sign an agreement for the assembly and distribution of Peugeot cars and light-commercial vehicles during the annual France-Kazakhstan Joint Committee meeting in Paris.

Plans call for the assembly of four Peugeot models from semi-knocked-down kits. The portfolio will include Peugeot 301, 3008 and 508 cars, as well as Partner LCVs. Initial capacity is pegged at about 4,000 units.

In addition to locally assembled models, Peugeot will offer the Russian-made Peugeot 408 as a completely built-up import in Kazakhstan. Annual sales of the sedan eventually could exceed 10,000 units, PSA says.

Peugeot vehicles will be sold by a sister company of AgromashHolding’s partner Allur Auto.

The project is expected to provide employment for over 300 people in France and 150 in Kazakhstan, the French auto maker says.

“This project in Kazakhstan is an important milestone for PSA Peugeot Citroen business development in the region of Commonwealth of Independent States, which is one the priority zones for our group along with Asia and Latin America,” Bernd Schantz, PSA Managing Director for Russia, Ukraine and and other CIS countries, says in a statement.

Currently, small volumes of Ssangyong, UAZ and ZAZ cars and SUVs, as well as Iveco LCVs, are assembled from SKD kits at the AgromashHolding facility. The company is ramping up preparations for assembly of a dedicated Ssangyong model version from complete-knocked-down kits.

Toyota in February signed a memorandum of understanding with the Kazakh government for CKD assembly of the Toyota Fortuner SUV in Kostanay.

Last year, 87,661 cars were sold in Kazakhstan. The market leader was Lada with 35,140 units, followed by Toyota (8,983), Daewoo (7,805), Hyundai (6,778) and Kia (5,492). No Peugeot or Citroen cars were sold in the country.