PSA Peugeot Citroen signs assembly deal in Kazakhstan image

The second-largest European automaker, France’s PSA Peugeot Citroen, recently signed a deal with AllurGroup to start the vehicle assembly process in Kazakhstan, according to a statement issued by the company.

AllurGroup’s SaryarkaAvtoProm assembly facility in Kostanay, will take charge of the operation, with the first model to come off the plant’s assembly lines being the affordable Peugeot 301. This is the French brand’s best selling model in the country and the scheduled production start is for September 2016. According to the carmaker, starting with 2017 the factory would reach an average production volume of about 12,000 units per year and if demand grows they could expand the capacity to 17,000 vehicles.

AllurGroup and PSA Peugeot Citroen started cooperation back in 2013 in order to build and distribute Peugeot’s models in the country. Since September 2013, ArgomashHolding – a subsidiary of AllurGroup- started assembly for some of Peugeot’s models – namely the Peugeot 301, 3008, 508 and Partner – all of them produced from SKD kits at the factory in Kostanay.

PSA Peugeot Citroen – badly hit by the European six-year slump in demand that led to decade-low sales – desperately needs to increase its overseas reach in order to stop losses and fulfill its recovery plan. Back in 2013, global sales of the French automaker were of 2.8 million vehicles, with just 42% outside the home region of the European continent.

Via Reuters