The ongoing economic challenges and inflation have forced car companies to make tough decisions to ensure their survival. Among these companies is Lucky Motor Corporation Limited (LMCL), which has announced the closure of four of its dealerships across Pakistan.
The decision comes as a result of dwindling sales and revenues, a common issue faced by many automakers in the country due to the current economic climate. The closures are part of LMCL’s strategy to manage expenses and maintain operational stability amidst these challenging times.
The dealerships that have been shut down 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. The company did not provide a specific reason for the closures in its official press release.
Kia, once considered one of Pakistan’s leading carmakers in terms of market share until mid-2022, has seen a significant decline in its momentum. The company’s sales have dropped drastically, with the number of cars sold now barely reaching into the hundreds.
Despite a slight increase in sales in June, the overall situation remains precarious for Kia and other automakers in Pakistan. The current economic conditions have left these companies navigating a challenging landscape, akin to walking on wafer-thin ice.