South Korea’s 2nd largest automobile manufacturer Kia Motors Corporation with partnership of Lucky Cement Pakistan is going to start assembling cars in Pakistan. Lucky Cement is planning to invest Rs12 billion to set up a plant and manufacture the Kia vehicles in Pakistan.
Lucky Cement will help Kia Motors to set up assembly plant in Pakistan through its investments. Once these investments are done, the company will be kickstarting its manufacture of car units locally.
In past Kia cars had been assembled in Pakistan but company stopped its operations due to low revenue and low sales of cars. The new venture will sell all types of Kia vehicles, parts and accessories.
Lucky Cement will make an investment of Rs. 12 billion through 1.2 billion shares worth Rs 10 per share each in the automobile company.
Karachi-listed Lucky Cement, which is part of the vast conglomerate Yunus Brothers Group. The company is working to diversify its business by setting up 660 MW coal-based power plants ‘Lucky Electric Power Company Limited’ (LEPCL) in Karachi.
Re-entry of South Korean automaker will loose the grip of Toyota, Honda and Suzuki, which are dominated now in Pakistan’s automobile market.
With a population of over 200 million people, Pakistan is a huge market for car makers. Due to high prices and less versatility only 180,000 cars were sold in year 2014/2015. The new players in the market will increase competition and will hopefully bring down exceptionally high car prices in Pakistan.