Lucky Motors Corporation held its power play event at their Port Qasim plant on Feb 15, 2021 to unveil the addition of a new SUV in its line-up of vehicles, the ‘KIA Sorento’. To recall, in Lucky Cement Limited’s (LUCK) segment reporting section, Lucky Motors Corporation posted a turnover of PKR 44.4Bn and operating profit of PKR 3.6Bn (EPS: PKR 11.0) in 1HFY21, compared to turnover of PKR 12.4Bn and operating loss of 0.28Bn (LPS: PKR 0.88) in 1HFY20.
Key highlights of the event are as follows:
The company plans to offer three variants of the all-new KIA Sorento. The variant will be as following from cheaper to expensive, 2.4L FWD, 2.4L AWD and a power-ful FWD 3.5L V6 option. All variants will be launched with a petrol engine, offer 7 seats and 6 airbags.
The Sorento will go head-to-head with the Toyota Fortuner and is expected to be launched by the end of Feb 2021. The major difference in the two competitors is that the Fortuner is a 4×4 SUV which is built to be driven on rough terrain giving it an advantage in off-roading while the Sorento’s crossover platform provides a smoother driving experience on urban roads.
Although the company did not unveil the ex-factory pricing. Our estimate is that the price for the cheapest variant will start from PKR 7.0Mn and go all the way up to 8.5Mn for the premium 3.5L variant. Placing it around PKR 0.5Mn cheaper than the relevant Toyota Fortuner options.
With powerful engine options, smooth handling, sunroof and extra features, KIA Sorento should receive a positive reception and further add to LUCK’s bottom-line.
Lucky Motors Co. has been increasing its presence in the auto sphere since the launch of its first vehicle in 1QFY20, the Sportage.
The company is estimated to have sold on average around 1800 units per month, ie ~12,600 units in 7MFY21. KIA’s Jan’21-unit sales at ~2200 units, place it higher then established players like HCAR with 2,063 units sales in Jan’21.
The company’s present lineup includes the Picanto Hatchback (PKR ~2.0Mn), Sportage SUV (PKR 4.4-5.4Mn) and Carnival Minivan (PKR 8.7-9.5Mn)
Courtesy – BMA Capital Management Ltd.