ISLAMABAD – Kia Lucky Motors Pakistan is expected to commence productionfrom August this year, reported Business Recorder. The report stated thatthe company is going to launch two new models in the next three months.
The manufacturing facilities of the firm are complete and the firm willstart manufacturing by August 2019 for the following models:
– Kia Sportage (2000 cc petrol) – Kia Picanto (1200 cc petrol).
The bookings for Kia Picanto will start in August 2019 while delivery willstart in October 2019 whereas booking for Kia Sportage will start in June2019 and while it will be delivered in August 2019, stated the report.
Kia has up to 15 percent localization in terms of parts and assembly inSportage and Picanto.
The company’s representatives met with the Prime Minister’s Advisor onCommerce, Textile, Industries and Production and Investment Razzak Dawoodand apprised him of their production plans and other issues.
Kia Lucky Motors Pakistan Ltd had applied for Greenfield status on March13, 2017, which was awarded on June 19, 2017. The planned investment in theproject is $ 190 million.
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According to the CEO, the company has a production capacity of 50,000 unitsper annum but the utilization of the production capacity will depend on themarket demand of its vehicles.
Furthermore, it was highlighted that the company is worried over theimposition of 10 percent Federal Excise Duty (FED) on above 1,700 ccvehicles.
According to Kia Lucky Motors, it is being rumored that the Government ofPakistan (Ministry of Industries and Production) is actively consideringawarding Greenfield status and similar concessions to an existing OEM whichhas committed to bringing in new investment.
The company argues that it was never the objective of the AutomotiveDevelopment Policy to give concessions to existing OEMs under theGreenfield or Brownfield categories, adding that if such intent had beencommunicated earlier, global OEMs like Kia and others would not havedecided to enter Pakistan.
