Automaker’s steep price cut gamble pays off

Amid lacklustre auto sales overall, the Korean assembler’s record Rs1.5 million price cut has worked, as the company earned billions in just a few days. Lucky Motor Corporation Ltd (LMCL) reduced the price of Kia Stonic to Rs4.767 million from Rs6.280m on April 29, thus waking up cash-rich investors and consumers to make windfalls even after paying “premium or on-money” up to Rs500,000 for instant delivery. After a tremendous response from the consumers, the company has to close down the booking on May 3 to manage the demand and supply gap. The market is abuzz with reports of different Stonic volumes booked by the LMCL’s dealers. Sources said that if the assembler booked 600 vehicles on full payment, it would have received Rs2.8bn. Even the partial booking of Stonic at Rs2.35m has brought in Rs1.4bn.