In what is termed as a “celebratory limited-time offer,” Lucky Motor Corporation revealed a significant 25% price reduction for KIA’s Stonic EX+ in Pakistan. This move follows recent price adjustments for the company’s compact SUV, Sportage, which saw reductions of up to Rs300,000.
Despite the celebratory language used by the company, analysts suggest that the price decrease is primarily a response to sluggish demand for the vehicle rather than a cause for celebration. The decrease is seen as an attempt to stimulate sales and compete more effectively in the market.
The statement from Lucky Motor Corporation expressed gratitude for five years of CKD operations in Pakistan and announced the limited-time price offer as a token of appreciation for customer support. The revised price for KIA’s Stonic EX+ now stands at Rs4,767,000, representing a substantial decrease of Rs1,513,000 from its previous price of Rs6,280,000. This adjustment took effect from April 29.
The pricing strategy for KIA Stonic failed to attract buyers, evident from the vehicle’s average monthly sales remaining below 100 units. With the price decline, the company aims to compete more directly with sedans in the same price range and capture a larger market share. It’s noteworthy that Lucky Motor Corporation had previously reduced the prices of Sportage and Peugeot last month as well.
Looking at the broader auto market scenario, analysts suggest that overall demand is expected to remain subdued until interest rates drop below 15%. Currently, the key policy rate stands at 22%, with the central bank maintaining a status quo for the seventh consecutive time. To further stimulate demand, analysts recommend raising the auto financing cap from Rs3 million.
The price reduction decision is viewed as an effort to revive demand and secure a larger market share in the increasingly competitive automobile market. As companies navigate market dynamics, such adjustments aim to stay relevant and attract consumers amidst evolving preferences and economic conditions.
