Lucky Motor Corporation, formerly known as Kia Lucky Motors Pakistan, decreased prices of its compact SUV – Sportage – by up to Rs300,000. The new prices are applicable from March 4.

After a reduction of Rs250,000, Sportage’s basic variant Alpha price is now Rs7.3 million.

The price of Sportage’s FWD, AWD and limited black edition variants were reduced by Rs300,000. The new prices are Rs7.74 million, Rs8.47 million and Rs9 million, respectively.

Prices of all other vehicles such as Picanto and Stonic remained unchanged.

“Kia was already offering various promotional offers such as installment plans, cashback and free registration,” said Muhammad Abrar Polani, research analyst brokerage house Arif Habib Limited (AHL).

“This price cut will add to the recovery in volumetric sales of Kia given a decline of 50% year on year in the overall automobile sector in the first half of fiscal year 2024,” he added.

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Another auto sector analyst Usama Rauf of AKD Securities said car prices over the previous year have seen manifold increase.

“Overall demand has suffered, compelling automakers to offer competitive prices. KIA Sportage was constantly facing demand pressures, which were exacerbated with the launch of the Corolla Cross within the same price range, albeit the latter being a HEV,” Rauf said.

“Furthermore, competitors Chery Tiggo and Changan Oshan have also decreased prices and are offering a discount of the same amount – Rs300,000.

“Apparently, the company’s interest-free loan policy for new buyers and other offers aren’t attracting much demand. Additionally, KIA was previously offering a cashback of Rs150,000 on booking on all variants of the Sportage.”