Kia assembling cars in Pakistan adds to the auto industry competition
The news for Kia assembling cars in Pakistan is going to be operational soon. The carmaker will be setting up a $115 million plant for manufacturing Kia vehicles soon.
The manufacturing and assembling of Kia vehicles was confirmed this Thursday by the Younus Brothers Group. Their plan to start a new company in this regard by the Lucky Cement is a part of their group. However, how much capital will be invested is not known yet. The company itself hasn’t been contacted yet though. It should be known that Kia had started assembling cars in Pakistan in the past too. However, low sales came in the way to result in a halt before.
The new project
The new project will import and export all types of vehicles, parts, and accessories and also market and sell them. This Kia re-entry shall boost government’s efforts to reduce the Japanese car market monopoly. It will also loosen Toyota, Honda, and Suzuki’s grip who assemble with local partners. Just last month, Renault agreed to investment in Pakistan while others are also being talked. Thus the increased competition will bring down the prices as expected by the government.
The auto policy in March offered such incentives for new entrants that angered the existing local players. However, it seems just enough to reduce their monopoly in the market. Hence, at least something seems to be going really positive for Pakistan now.