In what the company called a “celebratory limited-time offer”, Lucky Motor Corporation on Monday announced a massive 25% decrease in the price of KIA’s Stonic EX+ in Pakistan.
The development comes weeks after the company decreased prices of its compact SUV – Sportage – by up to Rs300,000.
An analyst Business Recorder reached out to said the decrease is due to low offtake of the vehicle, and less to do with “celebration”.
“As we complete 5 years of our CKD [Completely Knocked Down] operations, we are filled with gratitude for your unwavering support and thank you for your help in achieving this significant milestone in Pakistan. To mark this occassion, we are thrilled to introduce a celebratory Limited-time Price offer on our beloved Kia Stonic,” the company statement read.
Pakistan car sales drop 3% MoM in March
With the latest revision, KIA’s Stonic EX+ will now be sold at Rs4,767,000, with a drop of Rs1,513,000 from its previous price Rs6,280,000.
The price revision takes effect from April 29.
“Overall the pricing strategy of KIA Stonic failed to entice buyers, as evident in numbers with average monthly sales remaining below 100 units,” Usama Rauf, auto sector analyst at AKD Securities, said.
“With the mentioned price decline, the aim seems to directly compete with sedans in the same price range, thereby capturing a portion of their market share. Notably, the company previously decreased the prices of Sportage and Peugeot last month as well.”
Rauf was of the view that overall auto demand is expected to remain sluggish until interest rates drop below 15%. The key policy rate is currently at 22% as the central bank announced 7th straight status quo on Monday.
“Additionally, the SBP needs to consider raising the auto financing cap from Rs3 million to stimulate demand further.”
Mohammad Abrar, auto analyst at Arif Habib Limited, said the decision has been taken to revive demand and capture more market share as the automobile market is becoming more competitive.
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