Kia-Lucky is planning to launch up to 4 new models in Pakistan by 2021. According to the latest report:
“Kia is looking to launch 2-4 new models before the expiry of Automotive Policy 2016-2021 to avail tariff benefits.”
Under the Greenfield incentives, the company is entitled to import duty-free plant and machinery with 10% customs duty on non-localized parts for 5 years under the policy, as opposed to 32.5% for existing players, and 25% customs duty on localized parts, compared to 50% for existing players.
One among the new models is going to be the Cerato sedan which is expected to be introduced towards the end of this year. The company already has Grand Carnival luxury MPV, Frontier commercial pickup as well as local assembled offerings including Sportage SUV and Picanto hatchback in its product portfolio.
Kia-Lucky is estimated to witness a handsome 50% surge in sales to 27,000 units in the next fiscal year and a 7% increase in fiscal 2022/23, given aggressive launch plans of the company. According to analysts, balance sheet position of the company is also very strong as advance booking price of Sportage generates healthy customer cash advances. The company has currently received temporary subsidized relief financing from the central bank to the tune of Rs 2 billion while working capital requirement is likely to increase to cater to high sales.
The company enjoys tax holiday for 10 years due to its presence in Bin Qasim Industrial Park. Due to high demand, all three variants of Sportage (All Wheel Drive, Front Wheel Drive and Alpha) have delivery time of 1-3 months. AWD variant has the longest delivery time of 3 months whereas Premium on these variants range between Rs 400,000 to 600,000. The reason for success of Sportage is attributed to its pricing which is 37% lower than the available substitutes in the market.
At this stage it’s not clear which new models the company will bring in, however considering their aggressive strategies one can expect to launch competitive models rivaling existing options in the market as well as to tap new segments. Stay tuned to CarSpiritPK for more information on new Kia cars in Pakistan.