Kia’s re-entry into Pakistan will boost government efforts to shake up the Japanese-dominated car market and loosen the grip of Toyota (7203.T), Honda (7267.T) and Suzuki (7269.T), who assemble cars in Pakistan with local partners.
The government believes increased competition should bring down exceptionally high car prices in Pakistan, and in March it introduced a new auto policy favoring new entrants into the market by offering generous import duties.
Kia, has launched two new vehicles – Grand Carnival 11-seater family passenger car and a one-tonne pickup – in the form of completely built units.
The cost of the Grand Carnival starts from Rs3.9 million, while price tag for the one-tonne pick-up stands at Rs1.9 million.
After signing an agreement with the Ministry of Industries and Production last year for the production of light commercial and passenger vehicles, the company has now opened its first dealership in Karachi with plans to open more across the country.
Kia Motors is launching its vehicles through a joint venture with Lucky Cement. It has partnered with Yunus Brother Group to form Kia-Lucky Motors.