The Lucky Motor Company (LMC) Ltd. has signed a license and technical help settlement with the Stellantis Group. As per the settlement, the LMC has acquired the rights to assemble, manufacture, market, distribute, and promote the group’s passenger vehicles and lightweight industrial automobiles in Pakistan.
Stellantis Group is an enormous multinational conglomerate and the world’s fourth-largest automotive producer that was a results of a merger between the France-based PSA Groupe and the Italian-American Fiat Chrysler Vehicles (FCA) group.
There are 16 vehicle manufacturers that function underneath the Stellantis Group — Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Vehicles, Fiat, Fiat Skilled, Jeep, Lancia, Maserati, Mopar, Opel, Peugeot, Ram Vehicles, and Vauxhall.
As per the report, the CEO of the LMC, Asif Rizvi, stated that the corporate plans to fabricate the automobiles of the Stellantis Group underneath the Auto Growth Coverage (ADP) 2016-21, and that the manufacturing can be completed at its Bin Qasim Industrial Park manufacturing facility in Karachi the place Kia’s vehicles are additionally manufactured.
He added that the “LMC is about to create historical past within the vehicle trade of Pakistan by manufacturing and distributing two completely different worldwide manufacturers underneath one roof, and ushering in an period of multi-brand automotive corporations”.
The report additionally gave particulars about LMC’s plan to proceed from this main improvement and revealed that it’ll use its pre-existing manufacturing plant and assets to fabricate area of interest merchandise in small volumes that can be bolstered by excessive quantity manufacturing and the gross sales of Kia’s vehicles.
Rizvi added that area of interest merchandise do not need sufficient momentum available in the market to maintain themselves, which is why they’ll initially be supported by a longtime entity.
Early final 12 months, the LMC had additionally signed an expression of curiosity (EoI) and a memorandum of understanding (MoU) with the PSA Groupe which is a 50 % shareholder of the Stellantis Group. That is the LMC’s second main improvement that might point out larger developments for the Pakistani automotive market.
The ADP 2016-21 will expire in July, and the federal government is but to announce when it’s going to enact the brand new coverage. This makes one surprise if these signings will really herald new vehicles or whether it is only a technique of bumping the corporate inventory worth.
Regardless, there are speculations in regards to the new Automotive Trade Growth and Export Plan (AIDEP) 2021-26 that may quickly be launched by the federal government, and maybe the LMC can capitalize on it to perform its purpose of introducing a number of automotive manufacturers based mostly on the brand new coverage.