Kazakhstan & Hyundai Motor Group Deepen Automotive & Industrial Partnership
Kazakhstan is looking to strengthen its position as a regional automotive and industrial manufacturing centre as President Kassym-Jomart Tokayev and Hyundai Motor Group President and Head of Strategy and Planning Division Sung Kim discussed a broader phase of investment and technological cooperation. The talks focused on expanding Hyundai Motor Group’s industrial footprint in Kazakhstan, increasing localisation, developing automotive component manufacturing and creating opportunities for new large-scale projects. Representatives of Hyundai Engineering and Kia also participated, highlighting the wider scope of cooperation being considered between Kazakhstan and the South Korean group. The discussions went beyond vehicle assembly, encompassing electric mobility, energy infrastructure, gas processing and the possibility of developing a national automotive brand. The meeting also resulted in agreements connected with a gas processing project in western Kazakhstan and the production of a new Hyundai Tucson model in the country.
Building Kazakhstan’s Automotive Manufacturing Base
President Tokayev highlighted Hyundai Motor Group’s contribution to Kazakhstan’s automotive sector and identified deeper localisation as an important priority for the industry. The country already has an established Hyundai manufacturing presence in Almaty, while Kia has developed production operations in Kostanay. These facilities are increasingly important to Kazakhstan’s ambition to move from vehicle assembly towards a more comprehensive automotive manufacturing ecosystem. Tokayev stressed the importance of producing more automotive components domestically while strengthening the export potential of Kazakhstan-made vehicles. The broader objective is to develop full-cycle manufacturing and position Kazakhstan as a regional centre capable of supplying vehicles to markets beyond its domestic borders. For Hyundai Motor Group, Kazakhstan also has a wider regional role. Sung Kim described the country not simply as a sales market but as an important hub for the group’s activities across the Commonwealth of Independent States. He confirmed Hyundai Motor Group’s intention to expand its presence and further increase production localisation.
New Hyundai Tucson Production Planned
One of the major outcomes of the discussions was an agreement between Hyundai Motor Company and Astana Motors covering production of a new Hyundai Tucson model in Kazakhstan. The Tucson already has a significant history in the Kazakh market. Astana Motors previously identified the SUV as one of the country’s leading models, with versions of the Tucson already produced at the Hyundai Trans Kazakhstan facility in Almaty. The latest agreement therefore represents a continuation of an established manufacturing partnership rather than Hyundai’s first production venture in the country. Reports on the new agreement have not yet specified production volumes or the exact start of manufacturing for the newly agreed model. Expanding the locally manufactured model range could help Kazakhstan strengthen production capacity while creating additional opportunities for component suppliers, engineering companies, logistics providers and other businesses connected with the automotive industry.
Electric Mobility Emerges as a New Priority
Electric mobility was another major area highlighted during the talks. Tokayev identified the production of electric vehicles and their components, together with the development of charging infrastructure, as promising directions for cooperation with Hyundai Motor Group. Such cooperation could broaden the partnership from conventional automotive manufacturing into emerging mobility technologies. Developing local EV capabilities would also require an ecosystem extending beyond assembly plants to batteries, electronic systems, components, engineering expertise and charging networks. The discussions therefore point towards a longer-term industrial relationship in which technology transfer and localisation could become increasingly important alongside vehicle production.
Hyundai Engineering Expands Industrial Cooperation
The partnership is also extending beyond automobiles. Hyundai Engineering expressed readiness to cooperate with Kazakhstan in oil and gas, industrial development and infrastructure projects. Following the talks, QazaqGaz, Hyundai Engineering and SICIM Kazakhstan exchanged an agreement concerning the construction of a gas processing plant in western Kazakhstan. The agreement demonstrates how cooperation with Hyundai Motor Group companies is broadening into strategically important sectors of Kazakhstan’s economy. Together, the proposed gas-processing project, expanded Hyundai Tucson production, discussions on electric mobility and Kia’s interest in a national automotive brand illustrate a partnership increasingly centred on localisation, industrial capacity and technology. For Kazakhstan, the emerging agenda supports its ambition to become a larger manufacturing and export platform in Central Asia. For Hyundai Motor Group, deeper localisation strengthens Kazakhstan’s role as a production base and regional hub linking the company with markets across the wider CIS region.
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