The Stellantis Group and the Lucky Motor Corporation (LMC) Ltd. have signed a license and technical assistance agreement. The LMC has been granted the freedom to assemble, manufacture, market, transport, and sell the group’s passenger cars and light commercial vehicles in Pakistan under the terms of the arrangement.
The Stellantis Group is a major global conglomerate and the world’s fourth-largest car maker, created by the merger of PSA Groupe in France and Fiat Chrysler Automobiles (FCA) in Italy.
Abarth, Alfa Romeo, Chrysler, Citroen, Dodge, DS Automobiles, Fiat, Fiat Professional, Jeep, Lancia, Maserati, Mopar, Opel, Peugeot, Ram Trucks, and Vauxhall are among the Stellantis Group’s 16 car brands.
According to the article, LMC CEO Asif Rizvi stated that the company expects to manufacture Stellantis Group vehicles under the Auto Development Policy (ADP) 2016-21, and that manufacturing will take place at its Bin Qasim Industrial Park production facility in Karachi, which also produces Kia vehicles.
“LMC is set to make history in the Pakistani automotive industry by producing and exporting two separate multinational models under one roof, ushering in an era of multi-brand car companies,” he said.
The study also unveiled LMC’s strategy for going on from this substantial growth, indicating that it would use its current manufacturing plant and infrastructure to produce specialty goods in limited quantities, which would be boosted by high volume production and Kia’s car sales.
Niche goods, according to Rizvi, do not have enough market traction to maintain themselves, which is why they would initially be funded by a well-established entity.
The LMC also signed an expression of interest (EoI) and a memorandum of understanding (MoU) with the PSA Groupe, which owns a 50% stake in the Stellantis Group, early last year. This is the LMC’s second big development, and it could portend more positive changes for Pakistan’s automotive industry.
The ADP 2016-21 is due to expire in July, although the government has yet to decide whether the new strategy will take effect. Regardless, there are rumors that the government will soon launch the new Automotive Industry Development and Export Plan (AIDEP) 2021-26, and that the LMC will be able to use it to achieve its target of importing multiple car brands based on the news agenda.