News Desk |
KIA Lucky Motors Pakistan Limited (KLM) has announced that it will begin commercial production of vehicles by September 2019. Kia Motors has sent a notification to Pakistan Stock Exchange on Thursday declaring that “[KLM] targets to start production in the first quarter of the financial year 2019-20”.
KLM is an enterprise worth Rs20 billion including Rs14 billion in investment from the Yunus Brothers Group (YBG), the parent company of KLM. The company is a collaboration between South Korean Kia motors and the lucky group.
The company has started the sale of imported completely built units (CBU) in June last year. The collaborated companies have now started to assemble, market, and distribute all kinds of Kia vehicles, parts, and accessories under license from KIA Motors Corporation.
Ariful Islam, Deputy CEO of Meezan Bank, while speaking at the signing ceremony said, “Meezan Bank Car Ijarah has been developed to comply with the principles of Shariah for providing convenient car financing.
KLM Chief Operating Officer (COO) Muhammad Faisal said that “KLM’s plant construction is in full swing,” he also added “Lack of amenities may become a bottleneck, but work on our part is in full gear,” said the COO. The plant is waiting for the basic amenities like gas and electricity. A 660-megawatt plant will be commenced commercially in 2021 by YBG according to the bourse filing.
KIA is one of the new entrants in the automobile industry of Pakistan. Under the Automotive Development Policy 2016-2021, the Ministry of Industry and Production made an agreement with Kia Lucky Motors in December 2017, for the production of light commercial and passenger vehicles. It is because of this incentive-based policy that many other new entrants have invested in the automobile industry of Pakistan including Hyundai, Volkswagen, Renault, Nissan, etc.
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Meezan Bank recently signed a memorandum of understanding with KIA Lucky Motors Pakistan Ltd, formed to start vehicle assembly/manufacturing operations in Pakistan. The signing ceremony took place at Meezan House, Meezan Bank’s head office, Karachi. Irfan Siddiqui – President and CEO, and Ariful Islam, Deputy CEO of Meezan Bank, Asif Rizvi, CEO, and Muhammad Faisal, COO of KIA Lucky Motors, attended the ceremony along with their respective teams. MoU was signed by Ariful Islam and Mr. Muhammad Faisal.
Under this MoU, both the parties have agreed upon a joint promotion campaign for the KIA Grand Carnival. Meezan Bank has created a prospect for providing priority vehicle delivery to its customers across Pakistan. KIA is one of the world’s fastest-growing automobile manufacturers.
The production of Kia cars will have manifold benefits for the country. It will help rake in investment, promote jobs, and also provide diversity to the Pakistani automobile sector.
Ariful Islam, Deputy CEO of Meezan Bank, while speaking at the signing ceremony said, “Meezan Bank Car Ijarah has been developed to comply with the principles of Shariah for providing convenient car financing. The Bank follows a strategy of maintaining stringent credit criteria and fast deliveries to maintain optimal customer service in line with the service values of the Bank.”
Irfan Siddiqui, President, and CEO of Meezan Bank, further added, “This is an important event for Meezan Bank that corresponds with our strategy to remain the No. 1 bank in Islamic auto-finance market. Our agreement with KIA Lucky Motors Pakistan will make the luxury car– Grand Carnival– more affordable to a large population of brand lovers. The Bank, in turn, will get the opportunity to couple this provision with a range of additional services and benefits including faster vehicles delivery as well as free initial services for its customers.”
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The production of Kia cars will have manifold benefits for the country. It will help rake in investment, promote jobs, and also provide diversity to the Pakistani automobile sector.