When the local auto market is observing the companies reducing their car prices one after the other in the face of Rupee appreciation against the dollar, KIA Lucky Motors comes with a different statement to present.
In a statement, Lucky Motor Company (LMC) stated that the company is not in a position to reduce the prices of its vehicles. The notification translates that the company held prices for over two years and increased when it looked impossible to survive.
The company further informed:
“Dear Valued Customers,
LMC has always believed in being fair and transparent in our pricing policy; being a customer-centric company we took the unprecedented decision to maintain our vehicle prices for over 2 years since the launch of our flagship models: revising the same at an average of only once over the past 4 years.
While companies have been forced to take a wait and watch strategy to monitor the fluctuation in the exchange rate to see where prices will go, the increase was inevitable. To help sustain our business, we recently increased the price by 14% on 18th July; which we feel was a reasonable increase given the significant devaluation of the PKR against the USD; whereas during the same period, other industry players had taken the decision to increase prices between 19% and 23%, which has very recently been corrected to bring the increase at parity with Kia.”
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THE JUSTIFICATION
THE JUSTIFICATIONThe company shared a comparison table in a bid to reveal that they increased car prices by 14 percent whilst other companies mount the prices by 19-23 percent. And, after companies announced a decrease in prices, their prices comes back to 15 percent while KIA prices already stands at 14 percent. So, their current prices are still less than other companies. Meaning, KIA car prices revised on 22nd July will remain intact.
What do you think about the KIA Lucky Motor’s take on its car prices? Drop your thoughts in the comments section.
I agree, KIA is the only car assembler that did not raise car prices even when general level of inflation was rising, anyways, under current circumstances this move seems well-computed because Sportage is a luxury vehicle and by pricing it higher the company is helping government to contain import bill.