Hyundai Motor Group is set to begin production of its luxury Genesis models at a knock-down (KD) plant in Kazakhstan, aiming to enhance brand awareness and market share in Central Asia’s high-end automotive sector, traditionally dominated by German and Japanese brands.
According to industry sources, Astana Motors KMC has completed renovations at the Hyundai Trans Kazakhstan plant, located in the Almaty Industrial Zone. This facility, operational since April 2020, has been upgraded to modernize production lines specifically for Genesis models. Beknur Muratovich, CEO of Astana Motors KMC, announced the successful shipment of the first car from the test line and confirmed that commercial production of Genesis’s main models will start this fall. New showrooms are also being established in key cities such as Almaty, Shymkent, and the capital, Astana.
The plant, which currently produces 11 Hyundai models including the Sonata and Santa Fe, has an annual production capacity of 45,000 units. Initially, it will produce five Genesis models, including the G90 sedan, though it will not include electrified versions. The output is expected to significantly boost Genesis sales in Kazakhstan, where Hyundai and Kia currently dominate with a 35% market share but lag in the luxury segment.
Last year, Hyundai and Kia sold 71,220 units in Kazakhstan, capturing the largest share of the overall car market. However, Genesis’s luxury models have struggled, with only six units sold in 2022. By localizing production, Hyundai aims to close this gap and compete more effectively against established luxury brands.
The Almaty plant will be Hyundai’s first overseas KD facility to produce its luxury Genesis cars. The company operates approximately 30 KD plants globally, primarily in developing markets. This move underscores Hyundai’s strategy to enhance brand visibility and expand its luxury segment footprint.
Hyundai’s Chief Executive Officer, Chang Jae-hoon, visited the Almaty plant in February to discuss strategies for improving Genesis’s brand awareness in Central Asia. Additionally, Hyundai plans to support the establishment of local auto parts manufacturing facilities near the Almaty plant, further integrating its supply chain.
Looking beyond Kazakhstan, Hyundai is also considering production of Genesis models in India and Saudi Arabia, driven by decreasing demand in China and Russia. In India, Hyundai Motor ranks as the second-largest carmaker after Maruti Suzuki and plans to increase its production capacity to meet rising demand.
The Genesis brand, initially criticized as a Lexus imitator, has evolved into a recognized premium, high-performance marque. Its international sales have grown substantially, accounting for 44% of total sales in 2023, up from 18% in 2021. Despite strong performance in the US, Genesis continues to work on improving brand recognition in emerging markets such as India and other parts of Asia, as well as in Europe.
Hyundai’s investment in Kazakhstan marks a significant step in its global expansion strategy, positioning Genesis to better compete in the luxury automotive market and capitalize on the growing demand in Central Asia.
