Kia Corporation has clarified its agreement with Dewan Farooque Motors Limited (DFML). According to a statement by the company, Lucky Motor Corporation (LMC) is the exclusive licensee of Kia to manufacture, assemble, market distribute, and sell Kia cars and SUVs in Pakistan according to the agreement for Technical Collaboration and KD Supply signed between both parties.
“We further clarify that a contract recently signed by and between Kia’s “Special Vehicle Division” and DFML is limited only to special purpose commercial vehicles including PU (Bongo),” the statement read. It further mentioned that DFML is not and shall not in the future be allowed to produce any other Kia cars and SUVs in Pakistan as long as Kia and LMC have an agreement.
“We would like to categorically state that LMC is a trusted long-term exclusive CKD partner for Kia and cars and SUVs in Pakistan,” Kia corporation asserted. The company further said that it recognizes and appreciates the efforts LMC has put in to make the Kia brand a success in Pakistan.
DFML & Kia Agreement
Earlier this week, Dewan Farooque Motors announced that it has entered a Technology License Agreement (TLA) with South Korean automobile giant Kia motors to assemble its vehicles in Pakistan. In a notification to Pakistan Stocks Exchange (PSX), Dewan Motors said: “By the grace of Almighty Allah, we inform you that Dewan Motors Limited has entered in TLA with Kia Corporation, Republic of Korea, for the production/assemble of vehicles.”
Talking to PakWheels.com, Dewan Farooque Motor’s secretary Muhammad Hanif German confirmed the agreement. “We will produce and assemble light commercial vehicles of Kia Motors in Pakistan,” he said. Answering the question about a potential tussle with Kia, he said that we would not be entering the hatchback and crossover SUV segment for the time being.
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