Dewan Motors to relaunch KIA Shehzore in June’24
Family Business: Dewan Group’s automobile unit – Dewan Farooque Motors – was the brainchild of young Yousuf when he entered the family business two decades ago. PHOTO: FILE
Dewan Farooque Motors Limited (DFML) announced on Wednesday the reopening of its vehicle production plant after a nine-year hiatus, marking the re-launch of the special purpose commercial vehicle KIA Shehzore in collaboration with Korea, in anticipation of an economic boom in Pakistan.
In a notification to the Pakistan Stock Exchange (PSX), Muhammad Hanif German, the Company Secretary of DFML, stated that Dewan Farooque Motors Limited has resumed the commercial production of the “Special Purpose KIA Commercial Vehicle” with its product name ‘Shehzore,’ and its rollout/launch ceremony is scheduled for June 4, 2024.
Speaking to The Express Tribune, the company secretary mentioned that they are introducing three variants of the commercial loading vehicle, including the KIA Shehzore standard, king size, and double cabin, with the double cabin commercial vehicle being introduced for the first time in Pakistan.
He recalled that the vehicle plant was shut down nine years ago in 2015, when they were manufacturing and assembling passenger cars under the brand name Hyundai Santro and commercial vehicle Shehzore. They have been working to relaunch the commercial vehicle for the past two years.
Two years ago, in November 2022, the company entered into a Technical License Agreement (TLA) with KIA Corporation, Republic of Korea, for the assembly and manufacturing of special purpose commercial vehicles. German stated that they have conducted extensive exercises before the official launch of the vehicle next week.
The comprehensive background work suggests that economic and industrial activities are poised to ramp up, with a favourable environment expected to elicit a good response to the marketing of the commercial vehicle. He mentioned that commercial vehicles are primarily sold for cash.
However, the Prime Minister’s Nojawan Rozgar programme allows leasing commercial vehicles to create job opportunities. While they are not solely dependent on the PM programme, it remains supportive, he said. “Our strength lies in our dealers’ network.
We currently have 18 dealers nationwide, with the network expected to increase to 25 in the next 15 days,” he said. He expressed confidence that there are no foreseen obstacles in producing and marketing the commercial vehicles. Import constraints on vehicle parts have been resolved since August 2023, and the rupee-dollar parity has remained stable for quite some time.
“The government and banks have remained supportive,” he added. The company’s financial report for the third quarter ended March 31, 2024, indicated that they have already received shipments of completely knock-down (CKD) kits, A-max, and other necessary trial parts for vehicle production.
The company has also completed the maintenance of production facilities and the recruitment of essential technical personnel, while crucial equipment such as body-line welding jigs has been installed. Management has concluded the testing and trial phase of CBU KIA Commercial Trucks, receiving positive feedback from both potential dealers and customers.
Additionally, a nationwide dealership network has been established and reinforced. Furthermore, they have obtained certification from the Engineering Development Board of Pakistan (EDB) for in-house assembly and manufacturing.