Lucky Motor Corporation Limited (LMC) shocked the automotive industry in Pakistan with a surprise announcement on Monday. In a press release issued on the same day, LMC revealed its decision to close four of its dealerships in the country, effective immediately.
The affected dealerships include Kia Motors Hanna Lake in Quetta, Kia Motors Chenab in Gujrat, Kia Motors Avenue in Dera Ghazi Khan, and Kia Motors Gateway in Mardan. While the announcement was unexpected, LMC emphasized its commitment to transparency and customer-centric practices by informing all its customers promptly.
Curiously, the press release did not provide a specific reason for the abrupt decision. It comes as a puzzling move for LMC, considering the company’s positive performance in 2023. In contrast to its competitors experiencing declining sales, LMC saw a significant boost in sales during the same period.
According to Mettis Global, Kia Sportage, one of the company’s popular models, saw a notable 4 per cent increase in total sales Month-over-Month (MoM). Furthermore, LMC managed to sell impressive numbers of other models, with 163 Picantos, 53 Stonics, and 72 Sorentos sold in February 2023 alone.
The closure of these dealerships raises questions among industry experts and customers alike, as the company’s sales figures seemed to indicate a flourishing business. However, without a clear explanation from LMC, speculation continues to circulate regarding the true motives behind this unexpected decision.