In a bold move that has sent shockwaves through the automotive industry, Lucky Motor Corporation (LMC), the assembler of Kia vehicles, has abruptly suspended operations at four of its dealership networks. The news was disseminated through the company’s social media channels.
The company initially announced the closures on its Twitter account, posting a seemingly rushed press release on Monday. However, a subsequent statement released on Tuesday clarified that the decision to discontinue select dealership operations was based on “performance metrics and compliance with Kia’s stringent standards”.
The affected dealerships include Kia Motors Hanna Lake in Quetta, Kia Motors Chenab in Gujrat, Kia Motors Avenue in Dera Ghazi Khan, and Kia Motors Gateway in Mardan.
Despite these closures, the LMC statement assured customers that they would still have access to a strong network of 31 dealerships across 17 cities in Pakistan, reaffirming their commitment to meeting automotive needs and ensuring exceptional customer experiences.
When contacted, Chief Operating Officer of LMC, Muhammad Faisal, confirmed the development without providing reasons for the decision. The second press release also shed little light on the circumstances that led to the sudden shutdown of these prominent retail outlets.
Kia Motors Pakistan acknowledged the event while admitting their lack of insight into the reasons behind the decision. The automotive community remains intrigued by the unexpected shift in LMC’s business strategy, leaving stakeholders and experts puzzled.
Auto sector analyst at Arif Habib Limited, Muhammad Abrar Polani, suggested to The Express Tribune that the move might be aimed at improving overall customer satisfaction. He speculated that the dealerships may not have met LMC’s standards for providing value-added services to Kia customers.
LMC’s decision comes amidst a backdrop of declining sales, with Lucky Motor reporting a staggering 55% drop in sales during FY23, as highlighted in their annual report. While this move has caused a stir, experts like Polani believe that the closure of specific dealerships might not significantly impact volumes.
Published in The Express Tribune, August 9th, 2023.
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