Dewan Farooque Motors Limited (DFML) has entered into Technology License Agreement (TLA) with Kia Corporation, South Korea, for the production and assembly of vehicles.
DFML disclosed the agreement recently to the Pakistan Stock Exchange (PSX) under Section 96 of the Securities Act 2015 and clause 5.6.1 (a) of PSX Regulations.
This is an interesting development as Lucky Motor Corporation Limited (LMCL) is already assembling and selling Kia’s passenger and commercial vehicles in Pakistan.
Kia has risen to prominence in a short span of time due to its popular crossover SUV, Sportage. Due to its success, Kia has come in contention with automakers such as Toyota Indus Motor Company (IMC), Pak Suzuki Motor Company (PSMC), and Honda Atlas Cars Limited (HACL).
LMCL has highlighted its ambitions to expand its operations in Pakistan in the past. Despite recent price hikes and production cuts, the automaker has been enjoying consistent sales in Pakistan due to its strong brand value
The details on DFML’s alliance with Kia Motor Corp. are still scarce, however, it will be interesting to see if and how the Korean carmaker maintains its presence in Pakistan.