Dewan Farooque Motors says it has entered into agreement with KIA Corp to assemble its vehicles in Pakistan
Dewan Farooque Motors Limited (DFML) announced on Monday that it has entered into a Technology License Agreement...
KIA Corporation, the South Korean automaker, has clarified that Lucky Motor Corporation (LMC) is its exclusive licensee holder to manufacture, assemble, market, distribute, and sell KIA Cars and SUVs in Pakistan.
This was stated in a letter cited by Lucky Cement in its notice to the Pakistan Stock Exchange (PSX) on Thursday. LMC is a subsidiary of Lucky Cement, which is listed on the PSX.
“We write with reference to the recent notification by Dewan Farooque Motors Limited (DFML) to the Pakistan Stock Exchange regarding the signing of the Technology License Agreement (TLA) between them and KIA Corporation (“Kia”).
“We would like to clarify that LMC is the exclusive licensee of KIA to manufacture, assemble, market, distribute and sell Kia Cars and SUVs in Pakistan according to the General Agreement for Technical Collaboration and KD Supply signed between both the parties,” read the notice by Lucky Cement.
On Monday, DFML had announced that it has entered into a TLA with KIA for the production and assembly of its vehicles in Pakistan.
However, KIA clarified that the contract signed between its “Special Vehicle Division” and DFML is limited only to special purpose commercial vehicles (SPVs) including PU (Bongo), and DFML is not and shall not in future be allowed to produce any other KIA cars and SUVs in Pakistan as long as Korean automaker and LMC maintain the CKD business in Pakistan.
“We would like to categorically state that LMC is a trusted long-term exclusive CKD partner for KIA Cars and SUVs in Pakistan as per the contract signed between both parties.
“KIA recognises and appreciates the efforts LMC has put in to make the KIA brand a true success in Pakistan and we truly believe that with long-term strategic business relationship between Kia and LMC, the KIA brand is bound to be one of the most successful brands in Pakistan in the very near future,” it added.
Currently, LMC is assembling KIA brand vehicles in Pakistan, and produces SUVs Sorento, Sportage, Stonic and hatchback Picanto. It is also the assembler of French automaker’s SUV Peugeot 2008.