KARACHI: An agreement between the Ministry of Industries and Production and KIA Lucky Motors has been signed here in Islamabad here on Monday.
The agreement has been signed for production of Light Commercial and passenger vehicles under Automotive Development Policy 2016-2021.
According to the sources in the Ministry, the company will invest $ 115 million for setting up an automobile assembly plant in Karachi that will produce a wide range of commercial and passenger vehicles.
Source further said that this week Pakistani auto sector is taking a big leap with Hyundai plant inauguration in Faisalabad tomorrow and KIA Lucky agreement signed already. The new auto policy announced last year is finally bringing fruits to the Pakistani consumers.
The Korean auto giant KIA Motors is a favourite brand in GCC, US and European markets. KIA website shows products range from low-cost hatchbacks to luxury sedans, from crossovers to SUVs, most of them with plug-in hybrid variants as well.
The new automobile policy is attractive for new automaker participants in Pakistan’s growing car market. The news of new entrants Nissan-Renault, Hyundai and Chinese FAW along with KIA is encouraging for Pakistanis who so far, are relying on three available local assemblers. The lowest in the region, domestic car penetration of 13 vehicles per thousand persons is also offering an open plain field for the new auto manufacturers.