Declining sales: KIA slashes Sportage prices by up to Rs300,000

In a strategic move to stimulate demand, Lucky Motor Corporation, formerly known as Kia Lucky Motors Pakistan, has announced a significant reduction in the prices of its popular compact SUV, the Sportage.

The revised prices, effective from March 4, have been lowered by up to Rs300,000.

The basic variant, Alpha, has witnessed a substantial decrease of Rs250,000, now priced at Rs7.3 million.

Additionally, the prices of Sportage’s FWD, AWD, and limited black edition variants have all been reduced by Rs300,000. Consequently, the new prices stand at Rs7.74 million, Rs8.47 million, and Rs9 million, respectively.

This move comes amid challenging times for the automobile sector in Pakistan, which experienced a significant 50% year-on-year decline in sales during the first half of fiscal year 2024.

Experts anticipate that Lucky Motor Corporation’s decision to lower Sportage prices could contribute to a resurgence in its sales.

It’s important to note that while Sportage undergoes a price adjustment, other models such as Picanto and Stonic will maintain their current pricing.

Kia had already implemented several promotional offers, including installment plans, cashback, and free registration, to entice potential buyers.

This latest price reduction aligns with the industry trend, as competitors like Chery Tiggo and Changan Oshan have also lowered their prices by Rs300,000.

Industry observers attribute Sportage’s recent sales challenges to intensified competition, particularly with the introduction of the Corolla Cross in the same price range.

Although the latter is a hybrid electric vehicle (HEV), it has further heightened the competition in the market.

Despite Lucky Motor Corporation’s efforts, reports suggest that the previously offered interest-free loan policy and other incentives haven’t generated substantial demand.

Furthermore, a cashback offer of Rs150,000 on booking across all Sportage variants, which was in place before the price adjustment, failed to attract significant attention from potential buyers.