Dewan to make KIA vehicles

KARACHI: Dewan Faooque Motors Limited has announced that it has come into an agreement with KIA Corporation, Korea for the production of vehicles.

In a bourse filing on Monday, the company secretary of Dewan Motors said, “We inform you that Dewan Farooque Motors Limited has entered into Technology License Agreement (TLA) with KIA Corporation, Republic of Korea, for the production/assembly of vehicles.” It is not clear which vehicles Dewan Motors would produce. Previously it has produced Sportage and other vehicles, which were now being produced by the Kia Lucky group.

One analyst said that though it was not clear from the notification of Dewan Motors, it seems the company would assemble heavy and commercial vehicles for KIA Motors. “Likewise, Lucky group does not work exclusively with Kia Corporation, KIA Corporation can also have other groups to assemble its vehicles,” he said.

Recently, the share prices of Dewan Motors have increased at the Pakistan Stoch Exchange multiple times despite it being in the defaulter segment. On Monday, a total of 17.75 million shares of the company were traded that increased by 25 paisa per share to Rs11.41 per share. The share price was around Rs4 a couple of months back.

In its quarterly earnings, the company declared a loss of Rs105.083 million during the quarter ended September 30, 2022, against the losses of Rs63.813 million during the same quarter last year.