South Korea’s KIA Corporation has clarified different rumors in the market regarding the signing of a Technology License Agreement with Dewan Farooque Motors Limited (DFML), which wrote a notification to the Pakistan Stock Exchange (PSX).
According to KIA Corporation, Lucky Motor Corporation remains the “exclusive licensee of KIA Corporation to manufacture, assemble, market, distribute, and sell KIA cars and SUVs in Pakistan according to the General Agreement for Technical Collaboration and KD Supply signed between both the parties.”
It added that contract signed by and between KIA’s “Special Vehicle Division” and DFML is limited only to special purpose vehicles, including PU (Bongo), and DFML is not and shall not in the future be allowed to produce any other KIA cars or SUVs in Pakistan as long as KIA and LMC maintain their CKD partnership in Pakistan.
“We would like to categorically state that LMC is a trusted long-term exclusive CKD partner for Kia and cars and SUVs in Pakistan as per the contract signed between both the parties.” KIA Corporation added. “KIA recognizes and appreciates the efforts LMC has put in to make the KIA brand a true success in Pakistan and we truly believe that with long-term strategic business relationship between KIA and LMC, the KIA brand is bound to be one of the most successful brands in Pakistan in the very near future.”
Earlier, Dewan Motors had told media that it will assemble KIA vehicles that will be different from those being offered by Lucky Motors Corporation (LMC). However, the company did not confirm the model of said vehicles, which led to a lot of speculation in the market about whether the KIA brand was branching out to provide more competition in the market.
However, the latest letter written by SooHang Chang, the President of KIA Middle East and Africa, confirms that KIA Corporation’s partnership with Dewan Motors is going to be of a limited capacity.