Dewan Farooque Motors Limited (DFML) aka Dewan Group has announced its plans to launch KIA cars in Pakistan alongside Lucky Motors Corporations (LMC).
In a notification submitted on the Pakistan Stock Exchange (PSX), Dewan Farooque Motors Limited (DFML) group confirmed that it has entered into an Technology License Agreement (TLA) with KIA Corporation in South Korea for the production and assembly of its vehicles in Pakistan.
It is pertinent to mention that Lucky Motors Corporation is currently the sole assembler of KIA cars in Pakistan and provides several options, including Picanto, Stonic, Sportage, Sorento, and Carnival. However, Dewan Group told Profit by Pakistan Today that its vehicles will be different from those being offered by Lucky Motors Corporations.
This means that Dewan Group will introduce KIA cars that are not part of the lineup being offered by Lucky Motors Corporations, which is going to continue working on their own vehicles. Muhammad Hanif German, Company Secretary at Dewan Motors told Profit that company plans to introduce commercial vehicles alongside other options in Pakistan.
Lucky Motors Corporation is mainly focusing on SUVs and the crossover segment alongside one hatchback car, but does not offer any sedan models in the local automotive market. It means that Dewan Motors may focus on commercial vehicles alongside sedans, which are not part of the offering by Lucky Motors Coporation.
It is pertinent to mention that it is not the first time Dewan Farooque Motors Limited (DFML) has introduced KIA cars in Pakistan as it was responsible for launching KIA Classic, Spectra, and Sportage in Pakistan from 2000 to 2011. However, the collaboration came to an end due to Dewan Motors financial problems.
Lucky Motors Corporation stepped in to launch KIA cars once again with the popular Sportage as their first offering in 2018 and gradually expanded with other options in the same segment as well as one hatchback, the Picanto. LMC has managed to make KIA cars a big competitor in the local automotive market during the last 4 years, which may give Dewan an edge because the ‘KIA’ name has already made a foothold in Pakistan.
Read more: Kia Sportage Gets Limited Time Discount Offer.