Lucky Motors Ltd (LML) and France’s Groupe PSA have inked an expression of interest (EOI) and a memorandum of understanding (MoU).
LML, under the terms of the agreements, will assemble, manufacture, market, distribute and sell PSA automobiles and light commercial vehicles in the country; they plan on producing PSA models at their manufacturing plant at Bin Qasim Industrial Park.
Groupe PSA is a French transnational producer of automobiles and motorcycles sold under numerous brands including Peugeot, Citroën, DS, Opel and Vauxhall, PSA’s largest brand in Europe is Peugeot.
LML falls under the Younus Brothers Group and is also in the process of introducing South Korea’s KIA brand in the country.
Asif Rizvi, CEO LML, while talking to the media said that the partnership with Groupe PSA will bring a radical change in the country with the introduction of locally made European cars. He said,
We have applied to the Board of Investment (BoI) for category A greenfield investment status under the Auto Development Policy (ADP) 2016-21.
Parts of the agreement with PSA are to be carried out within the next few months, he added.
The CEO explained,
Initially, we have decided to assemble Peugeot cars which will be the first European car to arrive in the CKD category in the country. The new project involves an investment of about $15 million in jigs and fixtures and facility since the LML plant will be used for assembly of the European cars.
Future success of Pakistan’s automobile sector, according to the CEO, requires cars by numerous brands under various auto groups, “Which we are laying the foundation for”, he said, “This would give consumers an even wider range of options, through low volume production, besides intensifying competition among the existing and new players”.
This agreement is a timely welcome keeping in mind the doubts around the $165 million Al Futtaim-Renault project.
Over $1.3 billion under the ADP 2016-2021 has been invested by foreign investors, whose projects are at various stages of completion.
These are only news and nothing on the ground. Unstable economy leads to less buying power by the masses. Put the dollar conversion rate in perspective and prohibitive hurdles by our government’s lazy and corrupt officials and their policies… its a distant dream.. so keep on sleeping and dreaming.
I don’t know why you’re getting downvoted. It’s the hard truth. We need to stabilize our economy at a level for some time at least. Otherwise these news will remain just that and won’t materialize into anything.
Another assembler …. taking away all the money back to Europe
Comments from title C , Cool to capacity building, provisioning for bi-lateral treaty for exports of CKD/CBU for the green cars, vans, school van, bicycles, scooter, motorcycles, buses, coach etc., etc. As you know Harley Davidson is Japanese ownership considering entry in Pakistan for export markets. VW group very strong in green EV strong in Europe is also in discussion for international market for the EV, and bilateral trade from China. With sponsorship from Careem, and others are waiting from your inputs. I would suggest the LGL may initiate the launch of World Bicycle Day organised world wide in Karachi with the diplomatic missions, in the DHA, Clifton where restrictions should be made for Road Safety, Accident Avoidance on this occasion to show solidarity, cause for bicycle tracks in Karachi.