LAHORE: In a surprising notification on the Pakistan Stock Exchange (PSX), Dewan Farooque Motors Limited has announced that they have entered into an agreement with the KIA Corporation in South Korea for the production and assembly of vehicles.
Currently in Pakistan, Lucky Motors Corporation working under the name KIA Lucky Motors is the only assembler in the country that provides cars from the Korean manufacturers. Luck Motors’ SUV-heavy portfolio includes the Picanto, Stonic, Sportage, Sorento, and Carnival.
According to the notification given to the PSX, the Dewan group has entered into a Technology License Agreement (TLA) with KIA Corporation. While it will take some time before they begin to assemble KIA vehicles in Pakistan, the immediate expectation is that their portfolio of KIA cars will be quite different from the one that KIA Lucky Motors has.
How can there be two KIAs?
Essentially, the most likely scenario is that Lucky Motors will continue to assemble the current portfolio that they have, while Dewan Motors will bring in KIA cars that haven’t been introduced to Pakistan yet. “We will have commercial vehicles and others as well in our portfolio,” Muhammad Hanif German, Company Secretary at Dewan Farooque Motors, told Profit.
According to him, more details will follow in the weeks to come. This could lead to an interesting rivalry between the Dewan group and the Lucky Corporation. KIA Lucky Motors currently focuses on SUVs and the crossover segment along with one hatchback car, but does not have any sedan models on the market. In addition to bringing in commercial vehicles, Dewan Motors could also be looking to bring in sedans and other cars not brought in by Lucky Motors.
“We will operate separately from them. Our vehicles will be different from theirs. We will have ours, and they will have theirs.” Hanif told Profit. Profit also reached out to Muhammad Faisal, President of the Automotible Division at Lucky Motors, who did not respond the the queries.
In the past few years, Lucky Motors has managed to put KIA on a map as a major car manufacturer in Pakistan, and the Dewan group will be looking to cash in on the popularity that KIA has found in the country. In fact, the Dewan group has tried to bring KIA to Pakistan before but has not found the same success as Lucky Motors.
Dewan Farooque Motors was the previous manufacturer of KIA vehicles in Pakistan from 2000-2011. As part of the agreement Dewan introduced the KIA Classic, Spectra, and Sportage in the Pakistani market. However, the collaboration came to an end due to Dewan’s financial problems, after which KIA was reintroduced in the Pakistani market by Lucky Motors in 2018.
“We will disclose any and all information on the PSX. For now we have just signed our TLA, we will convey all future information to our shareholders and the market in due time. We cannot disclose anything further for now” Hanif told Profit. Subsequently, we will have to speculate upon all prospective vehicles that Dewan Farooque Motors will be releasing in the time to come.
Which cars could they introduce?
Strictly in terms of commercial vehicles, KIA globally provides just two. The Bongo pick-up truck and the Granbird bus. Neither of these two products is offered by KIA currently in Pakistan, and therefore both are prospective vehicles that Dewan may introduce. Based on market trends, it is likely that the Bongo, and not the Granbird will see the light of day in Pakistan. The Bongo is also likely given Dewan’s experience in the production of its Shehzore trucks.
Despite not elucidating upon the range of segments that Dewan will introduce vehicles beyond commercial ones, KIA globally has an array of vehicles that Lucky Motors still does not produce in Pakistan.
In the hatchback segment, KIA offers five different vehicles. Of these, Lucky Motors only produces the KIA Picanto. Similarly, KIA offers twelve different Crossovers and SUVs, of which Lucky Motors only produces the Stonic, Sportage, and Sorento. In the multipurpose vehicle (MPV) category, Lucky Motors does provide KIA’s flagship offering: the Carnival. However, globally, KIA does have one other MPV in its arsenal that could potentially be launched in Pakistan. Finally, KIA offers eight sedans and a station wagon globally, of which Lucky Motors does not produce any in Pakistan.
MasahAllah. Good try. But. Rate is to much higher every time. Plz give relief pak poor customer. Bring one small car like suzuki mehran type with auto transmission. This is my opinion. But you can better think about your business. Plz reply.
They should consider
KIA Carens Seven Seater. Regular and Top version.
This will be a HOT product for FAMILY car lovers in local market.
Dewan Group is a defaulter of over Rs 45 BN. Dewan Farooq Motors it’s self a defaulter, how can a reputed company like KIA can enter into an agreement with them….they should not….
this is called Makafati Amal, lucky Motor Corporation lay off their employees including management staff on the one day notice period, how employees survived in the current inflation situation, InshaALLAH they will ruined soon
☝️❤️☝️Indeed.
kia rs
Mukafat E Amal. Just one month back, Lucky motor corporation viciously laid off multiple management employees who were hired 2-3 months before, on one day notice. All came from reputed organisations. IA LMCL will be wiped off soon from the market.
I think all cars of kia company are the best cars but there is no resale of these cars in pakistan you know why, because you need to give awareness, publicity and quality of your cars till rural areas and till over all pakistani people’s as like suzuki, toyota, and honda i think kia cars are 100 times best and economical in quality and prices.
Assalamualaikum Dewan Group,
Firstly, please give me full and settlement payments.
thanks
Zeeshan please share your contact number
In Pakistan, we cant rely on Korean/any other new brand, they can wind up any time. After this much period of Curnt Business, Kia Dealers have no inventory of Spare parts for routine requirements.
Most dealers have only Engine oil/Filter and Air Filters in parts inventory. We cant find Kia/Hyundai parts in our local market. Common man cant take risk to buy korean. We have only choice Suzuki/Toyota /Honda and any Japnese common model, due parts avlblty, resale and future.
Dewan group is the greatest cheater group in Pakistan. More than thirty years ago my father became their victim. About 12 years back i became their second victim and last year my son received the same treatment from them . After every 10 to15 years they come in the market with a new face and cheat people and run away
The famous adage applies here perfectly for you, sir
Fool me once, shame on you.
Fool me twice (thrice), shame on me.
There another legal one also….
Buyer beware !!!
Fraud is the popular way business is conducted in Pakistan. All big and small fish are doing it and getting away with it successfully.
It’s the customers who have to be “beware” and do some market research and background checks.
A little due diligence is the only prevention.
Whole world nations are concentrating on production of Electric vehicles, thus getting rid of fossil fuel ones . How long we will continue only to assemble. it is high time we should become manufacturers of all type of vehicles. Unfortunately, our planners and Engineering Board are simply a curse. They have been totally useless sofar and nation cannot expect anything from them.
Lki
MASHALLAH! BEST PERFORMANCE ALLAH HUMAISAH KAMIAB KARAY AUR AAP KO AAP KAY AIM TAQ POOCHNAY KI TAQAT DY (AAMEN)
Really
waiting
please one car gift me
kIA cars ka name cobra car rakhte tu name bohat Expensive hota
This is only for commercial vehicles.
Very Goods, Dewan group is although in default but reliable. So they take good initiative.
vax
will dewan motors also launch KIA SELTOS
will dewan motors also launch KIA SELTOS
plz tell
KIA is the best vehicle and even more beautiful cars. This group has done so well to start again, best of luck Dewan Group!!!!!!
I like kia car because the are affordable 😛
we are kia dealer at Mirpur Azad Jammu and kashmir. I being a retired civil servant knew that kia vehicles were sold by DFML. This company miserably failed in pakistan in 90s. Government of AJK bought many shortages in that Era. Turbos of those vehicles malfunctioned in the start of use. these were abandoned by senior Government officials. there engines were replaced with alternate engines of other brands.
DFML alsohad had managerial problems. Their owners were rude and dishonest with the dealers and employees. Shehzor and Santre were the best products but due negative intent These also failed.
with the arrival of Kia Lucky motors we also thought for dealership. I had fear in my mind with the past track of Kia but my son told me that today Kia is in the hands of honest lucky group. So we decided to get dealership. Alhamdulillah today we are more than happy.
in the end someone has rightly pointed out DFML as a defaulter. it is not a defaulted of Rs 42 billion but Rs 72 Billion. Government of Pakistan and specifically industries department engineering Development board and Stock exchange of Pakistan should keep a close watch on this affair. This company may not harm citizens of Pakistan and more importantly not damage the name of Pakistan in the eyes of countries like South Korea.
Its grest thing. I m really rejoiced by that. I have kia classic car and still it is far better than Japanese cars on Pakistan. B
Shall it be doing the job of kia classic cars overhauling, i have clasdic car snd first ownrr. I love that car.
Regards
Yasir 03335411113
The Dewan Group has announced its plans to introduce KIA cars independently of its partnership with Lucky Motors. This strategic move signifies the group’s ambition to expand its automotive ventures and market presence, potentially offering a distinct approach and direction in promoting the KIA brand within the Pakistani automotive market.
The Dewan Group is preparing to introduce KIA cars independently of their collaboration with Lucky Motors. This strategic move aims to expand their presence in the automotive market and offer consumers more choices. The decision comes with the balance of price cards and product offerings, allowing the Dewan Group to diversify its portfolio and cater to a wider range of customers, potentially shaking up the industry with more competitive options.