KIA’s Justification For Not Reducing Car Prices

KIA Lucky Motors has a distinct comment to make as the local auto industry observes firms lowering their automobile prices one after another in response to the rupee's rise versus the dollar.

According to a statement from Lucky Motor Company (LMC), the business is unable to lower the cost of its cars. The warning translates as the firm kept prices the same for more than two years then raised them when it appeared they wouldn't be able to survive.

"Dear Respected Customers,

Since LMC has always prioritized its customers, we have made the historically unheard-of choice to keep our car prices unchanged for more than two years following the introduction of our flagship models, with an average of just one revision over the previous four years.

The price rise was unavoidable, despite the fact that businesses have been compelled to adopt a wait-and-see approach to monitor exchange rate fluctuations to determine where prices will go. Due to the significant depreciation of the PKR to against USD, we awhile back increased the price by 14% on July 18 in order to support our business. At the same time, other players in the market decided to raise prices by 19% to 23%, but this decision has recently been reversed to bring the increment at equalization with Kia.

THE JUSTIFICATION

The firm published a compare chart to show that whereas other businesses raised automobile costs by 19–23%, they did so by just 14%. Moreover, after businesses declared price cuts, their costs increased by 15 percentage points whereas KIA pricing remained at 14%. Therefore, their present pricing remain lower than those of other businesses. Consequently, the 22nd of July rates hike for KIA vehicles would not change.

What do you think about the KIA Lucky Motor’s take on its car prices? Drop your thoughts in the comments section.