KARACHI – The Lucky Motor Corporation (LMC), manufacturer and distributorof Kia vehicles has entered into a Licence and Technical AssistanceAgreement with the Stellantis Group to assemble and distribute one of theirEuropean brands in Pakistan.
The Stellantis Group is the world’s fourth largest car group which wasrecently formed and it contains a portfolio of 14 international brands.
In mid-2019, LMC signed an MoU and expression of interest (EoI) with GroupePSA which is now part of the Stellantis Group. Last year before achievingthe manufacturing licence under the government’s new entrant policy, theLMC (then known as Kia Lucky Motors) had informed the government of itsintentions to partner with Peugeot, a brand of the Stellantis Group.
Asif Rizvi, CEO Lucky Motor Corporation (LMC), on Thursday said, “LMC isset to create history in the automobile industry of Pakistan bymanufacturing and distributing two different international brands under oneroof and ushering in an era of multi-brand car companies”.
“We are planning to assemble vehicles of a Stellantis Group brand withinthe Automotive Development Policy (ADP) 2016-2021 period at ourmanufacturing facility in Bin Qasim Industrial Park (BQIP) where Kiavehicles are manufactured,” said Rizvi.
The new European initiative carries an investment of €10 million, he said,without giving any hint about manufacturing of any specific models beforethe expiry of 2016-2021 Auto Development Policy on June 30, 2021.
Read Top Stories
“Our strategy is to leverage our state-of-the-art facility formanufacturing small volumes of niche products on the back of high-volumemanufacturing of the Kia brand,” said Rizvi, adding that such small volumeniche products were very difficult to sustain on their own.
“Truly, Pakistan is now well on its way to representing global auto brands.We are very confident and happy that the people of Pakistan will soon beable to add a premier European brand to the list of choices they will nowhave, which would not have been possible otherwise as a stand-alone brand.Further, we will deliver a strong customer experience through our newmulti-brand dealerships,” he said.
The ADP 2016-2021 had so far attracted investment of more than one billiondollars from the foreign investors including Chinese and Koreanmanufacturers.
