KIA opens bookings for its Carnival facelift despite uncertainty surrounding final price

The facelift version of KIA’s flagship multi-purpose vehicle (MPV), the Carnival, is set to hit the roads in December 2024. Dealerships of Lucky Motor Corporation have already opened bookings, even as the model’s name and final pricing remain uncertain. 

While the previous model, Carnival Executive, was priced around Rs16.1 million (ex-showroom), industry insiders are projecting a price increase for the new model. Some dealerships have suggested a meagre rise of Rs 4-6 lakh, while others hint at a potential surge of up to Rs10 to 15 lakhs.

The KIA Carnival stands out as a luxury 11-seater MPV, offering a unique alternative to the conventional 4×4 SUVs and family cars. Known for its versatility and premium feel, the Carnival appeals to larger families, corporate buyers, and even commercial users who need a vehicle that combines seating capacity with comfort. 

Unlike other recent entries in the market, such as the BYD EV and KIA’s own EV5, the Carnival continues to cater to a niche segment with its spacious seating and high-end features.

Sara Tariq, Head of Sales at Kia Motors 9th Avenue, emphasised that it is “the one and only 11-seater luxury car,” designed for consumers seeking spacious luxury without the compromises of an SUV or minivan.

While specific details about new features are yet to be officially released, it is expected that the facelift will carry forward most of the advanced safety and comfort features from the previous model, including seven airbags, dual sunroof, advanced driver-assistance systems, and high-tech infotainment options. 

The vehicle remains a Completely Built Unit (CBU) import from South Korea, keeping its pricing closely tied to the dollar exchange rate and import duties, which will be reflected in its invoicing price.

However, buyers will have to pay withholding tax at the time of the registration depending on their tax filer status, under recent revisions to the withholding tax which have come into effect since 1st July 2024.

Tax filers will be required to pay a 12% withholding tax on the invoice price, whereas non-filers will incur a hefty 36% withholding tax rate.

The facelift is being introduced at a time when petrol prices also remain high, which adds to the financial considerations for potential buyers of this 3.5 litre petrol-engine MPV. 

Despite the official price not yet being confirmed, KIA’s authorised dealership at 9th Avenue, Islamabad, reported that three orders have already been placed, each with a Rs4 million booking deposit. 

While KIA experienced a 53% decline in sales in the previous calendar year, this year its Stonic EX+ became overbooked after a price reduction of Rs1.5 million. This reiterates the need for sustainable pricing as affordability has become a key issue for car buyers.

Interestingly, while some dealerships have opened bookings, others, like the Clifton dealership in Karachi and even KIA’s head office, have expressed limited awareness about the new model’s arrival and pricing, causing some confusion among customers.

Since entering Pakistan in 2018, KIA, under its partnership with Lucky Motor Corporation, has positioned the Carnival, which launched in Pakistan in 2021, as a bold contender in a variety of categories. Its 11-seat configuration has allowed it to be classified as a commercial vehicle, sidestepping higher duties typically applied to CBUs. 

This strategic classification has kept previous models of the Carnival relatively affordable despite regulatory challenges. The new facelift model should capitalize on this positioning while contending with increased competition from both high-end SUVs and new EV options.

As Pakistan’s automotive landscape shifts and the middle class diminishes, the Carnival facelift provides limited opportunity to capture a much-smaller market. And with rising prices and economic uncertainties, the real question remains: will the Carnival facelift retain its appeal amid increasing financial pressure on consumers and uncertainty surrounding its final price?