KIA’s entry will boost mutual automobile technology exchange, which will lead hi-tech and reasonable automobiles in Pakistan.
South Korean carmaker Kia Motor Company is expected to soon begin assembling cars in Pakistan andto invest Rs12 billion ($115 million) to establish a plant and manufacture the Kia vehicles, according to a local partner.
Earlier, Kia cars had been assembled by Pakistan in the past but after significantly low sales led manufacturing services to termination of their channel.
KIA’s re-entering in Pakistan’s automobile industry will accelerate government efforts to shake up the Japanese leaded, who assemble cars in Pakistan market with local partners market and loosen the grip of Toyota, Honda and Suzuki. As Kia is one of the top 20 most valuable car manufacture and it has been ranked as the most reliable car manufacturer in 2016.
According to the plans, Dewan Farooque Motors Company was in discussion with KIA Motors for resuming local production of KIA in Pakistan. Now after all negotiation, Dewan Farooque Motors in collaboration with KIA Motors Korea planning to launch passenger cars, light commercial vehicles and SUVs expected in early 2017.
KIA’s re-opening in Pakistan will expedite technology exchange between Pakistan and South Korea. It will also improve mutual race in the automobile industry, which will lead hi-tech and reasonable cars are likely to be available in future.
Karachi-listed Lucky Cement, Also the part of the multinational corporation Yunus Brothers Group, said in a statement that “It is planned to set up a new company to start manufacturing, assembling, marketing, distribution, import and export of all types of Kia motor vehicles”
Although South Korean company Representatives could comment not immediately regarding how much capital Kia itself would invest in the venture.
In a statement with Pakistan Stock Exchange Lucky Cement told that “The new venture will also market and sell, besides import and export of, “all types of Kia vehicles, parts and accessories”