KIA Qazaqstan to expand local component production after output growth

Economy Materials 21 July 2026 11:25 (UTC +04:00)
KIA Qazaqstan to expand local component production after output growth
Gulnara Rahimova
Gulnara Rahimova
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BAKU, Azerbaijan, July 21. KIA Qazaqstan plans to increase the share of locally produced components in its vehicles through the development of domestic supplier networks and new localization projects, the Kazakh government says.

This was announced by General Director of the company Kim Dae-Ki, during a government meeting chaired by Prime Minister Olzhas Bektenov.

According to the company, projects are underway in Kazakhstan to organize the production of automotive components, including wiring harnesses, seats, interior elements and other parts.

Kim Dae-Ki noted that cooperation with Kia Corporation is supporting efforts to expand local production capabilities and develop suppliers involved in the automotive manufacturing process. The company plans to further increase localization levels for its passenger vehicle models by the end of 2026. "With Kia's support, projects are already underway in Kazakhstan to produce electrical wiring, car seats, interior components, and other components. The company plans to increase the level of localization of Kia vehicles by the end of this year," he said.

The company’s manufacturing facility in Kostanay, built with an investment of $310 million, continues to increase production volumes. In the first half of 2026, KIA Qazaqstan produced 9,772 vehicles.

The plant operates using Complete Knock-Down (CKD) assembly technologies, including body welding, painting and vehicle testing operations. The expansion of local component production is expected to increase the participation of Kazakh suppliers in the automotive production chain and support further development of the country’s vehicle manufacturing sector.

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