ISLAMABAD - An agreement for production of light commercial and passenger vehicles has been signed between the Ministry of Industries & Production and KIA Lucky Motors.

According to the details, the company will invest $115 million for setting up an automobile assembly plant in Karachi that will produce wide range of commercial and passenger vehicles. The agreement has been signed for production of light commercial and passenger vehicles under Automotive Development Policy 2016-2021.

This week Pakistani auto sector is taking a big leap with Hyundai plant inauguration in Faisalabad and KIA Lucky agreement signed already. The new auto policy announced last year is finally bringing fruits for Pakistani consumers, said the official.  The Korean auto giant KIA Motors is a favorite brand in GCC, US and European markets. KIA website shows products range from low-cost hatchbacks to luxury sedans, from crossovers to SUVs, most of them with plug-in hybrid variants as well.

The new automobile policy is attractive for new automaker participants in Pakistan’s growing car market. The news of new entrants Nissan-Renault, Hyundai and Chinese FAW along with KIA is encouraging for Pakistanis who so far, are relying on three available local assemblers. The lowest in the region, domestic car penetration of 13 vehicles per thousand persons is also offering an open playfield for the new auto manufacturers.