Once again, the automotive industry will be welcoming another big name, with KIA Motors planning to establish an auto assembly plant in Pakistan.

As of now, the Yunus Brothers Group (YBG) are in talks with South Korea’s KIA Motors Corporation on negotiating on the deal with the automotive giant. According to BIPL securities, minor details are available so far about the talks, and will soon be developed as the talks continue.


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KIA Motor’s interest in Pakistan’s industry follows after Nissan-Renault, Audi and BMW’s interest in coming to Pakistan, following the new auto=policy which is friendly for international auto manufacturers. While some are ready to establish a plant, other are already planning to launch entry-level automobiles.

According to PakWheels, sources have reported growth in the automotive market, country’s improving economic conditions, and strong potential for growth come under the umbrella of successful China-Pakistan Economic Corridor (CPEC). While keeping low-interest rates and attractive incentive policies are very compelling reasons for a lot of foreign automakers to step into Pakistani market.

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Statistically, the figures speak for themselves as the car sales have grown by 17% in three years, ending on June 30th 2016. Although the country’s car penetration is lowest in the region yet the experts are predicting a lot of positivity in terms of growth. More importantly, the size and specs of the new plant are still awaited, the investment bodes well for the local parts manufacturers who will likely expand their base of operations and create more employment opportunities, thus contributing more pro-actively in improving the economic conditions of the country.

The new auto policy of Pakistan envisages doubling the production of cars/jeeps/vans and light commercial vehicles to 429,000 units from the current production level by 2021.

BIPL further elaborates that this project will present a win-win situation for both partners. One player will get access to a new market, while the other will be able to diversify its operations. Furthermore, Pakistanis have already experienced driving the locally produced KIA Spectra and Classic NGV from 2004-05 and 1999-2000, respectively, under a joint venture with Dewan Motors.

Stay tuned to Brandsynario for more updates.

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