KIA motors to close four dealership outlets in Pakistan

KARACHI: Kia Lucky Motor Corporation (KLMC), a South Korean car maker, said on Monday it is closing down four dealerships in Pakistan, without giving any reasons for the move.

The company announced the closures on its social media account.

The affected dealerships are Kia Motors Hangu Lakki Marwat, Kia Motors Chanab Gujrat, Kia Motors Union Dera Ghazi Khan and Kia Motors Gate Way Mardan, according to documents posted online.

Earlier this year, KLMC had also shut down a major service centre in Karachi, Kia Motors Shahrah-e-Faisal.

The decision raises questions about the state of the auto industry in Pakistan, which has been struggling with high costs, low demand and regulatory hurdles.

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The reasons and implications of KLMC’s strategic shift remain unclear.

KLMC is a joint venture between Lucky Cement Ltd, a Pakistani conglomerate, and Kia Motors Corporation, South Korea’s second largest car manufacturer.

The company entered the Pakistani market in 2018 with an investment of $115 million and a production capacity of 50,000 units per year.

KLMC offers a range of vehicles in Pakistan, including hatchbacks, sedans, SUVs and commercial vehicles.

Some of its popular models are Kia Picanto, Kia Sportage, Kia Sorento and Kia Grand Carnival.

Kia Motors Corporation has a history of operating in Pakistan since the mid-1990s, when it launched the Kia Pride hatchback and the Kia Ceres pickup truck. However, the company faced difficulties due to its local partner at the time, Naya Daur Motors, and eventually withdrew from the market.