KARACHI: The Lucky Motor Corporation (LMC), makers and provider of Kia automobiles, arrived into a License and Technical Assistance Deal this week with the Stellantis Group to manufacture and distribute one of their European products in Pakistan.
The Stellantis Group is the world’s fourth biggest car group which was lately formed, and it comprises a collection of 14 international brands.
The LMC in mid-2019 had retained an MoU and expression of interest (EoI) with Groupe PSA which is now portion of the Stellantis Group. Last year before attaining the industrial license under the government’s new competitor policy, the LMC (then known as Kia Lucky Motors) had notified the government of its plans to partner with Peugeot, a brand of the Stellantis Group.
The CEO of LMC, Asif Rizvi, told Pardachaak on Thursday that “LMC is set to make history in the vehicle manufacturing of Pakistan by manufacturing and delivering two different global brands under one roof and guiding in an epoch of multi-brand car firms”.
Lucky Motor, Stellantis Group enter Licence and Technical Aid Deal
“We are planning to manufacture vehicles of a Stellantis Group brand within the Automotive Development Policy (ADP) 2016-2021 era at our assembly capacity in Bin Qasim Industrial Park (BQIP) where Kia vehicles are manufactured,” the CEO of LMC said.
The new European project holds an outlay of €10 million, he said, without giving any clue about production of any particular models before the expiration of 2016-2021 Auto Development Policy on June 30, 2021.
“Our policy is to leverage our state-of-the-art capability for manufacturing minor numbers of niche products on the back of high capacity manufacturing of the Kia brand,” he said, adding that such small volume niche products were very challenging to withstand on their own.
The prospect to partner with Stellantis, a worldwide frontrunner for a number of brands under its flag, is a tactical jump for Lucky Motors which could promote upcoming alliances with other brands of the Group such as Fiat, Chrysler, Jeep, Dodge, Citroen, Opel, Vauxhall, etc., he told.
Additional first was the launch of a locally assembled top European brand in Pakistan, letting buyers to now have entrance to a brand outside of Asia, Mr Rizvi said.
“Justly, Pakistan is currently fine on its means to signifying international auto brands,” he said, adding that “we are very assured and pleased that the people of Pakistan will shortly be able to add a leading European brand to the tilt of selections they will now have, which would not have been imaginable then as a stand-alone brand. More ever, we will bring a robust consumer experience through our latest multi-brand showrooms,” he said.
“European automobiles have their own exceptional charm and technology, which is a great addition to the automotive landscape of the nation. The true gainers will be buyers who have been without considerable options for a prolonged time,” Mr Rizvi said.
The ADP 2016-2021 had so far drew investment of more than one billion dollars from the overseas shareholders including Chinese and Korean companies.