Pakistan’s leading conglomerate warns of rising competition from Chinese auto brands

Lucky Cement Limited, a Pakistani business conglomerate, has cautioned that competition in the country’s automobile sector is intensifying, driven by the entry of new Chinese brands and the government’s decision to liberalise the commercial import of used cars.

In its director’s report, released on Tuesday, the company noted that while the automobile market’s overall outlook is gradually turning positive, “at the same time competition is intensifying with the entry of new and additional Chinese brands in the market as well as the government’s decision to liberalise the commercial import of used cars“.

However, the company remains confident that with the introduction of its new models, “Lucky Motor Corporation (LMC) is positioned to benefit by safeguarding profit margins and enhancing competitiveness in a recovering market”.

Meanwhile, the company’s smartphone segment also reflects a positive trajectory. Lucky said it sees significant growth potential in the low-cost smartphone market.

“In response, LMC has shifted its focus towards producing affordable smartphones, aiming to strengthen Samsung’s market position by aligning with the increasing demand for cost-effective mobile phones,” read the report.

Moreover, Lucky Cement’s joint venture company, National Resources (Pvt.) Limited (NRL), reported promising initial findings from its ongoing exploration activities in Balochistan, indicating potential for commercially viable mineral deposits.

“NRL, a joint venture entity with a 33.33% equity stake, successfully acquired three mining leases in Baluchistan on October 13, 2023. Two of the leases hold potential for copper-gold mineralisation, while the other presents prospects for lead-zinc.

“Mobilisation efforts at both sites are currently in progress, with early-stage exploration activities underway and initial findings appearing promising,” it said.

Separately, the Lucky Cement’s expansion project in Samawah, Iraq, involving the construction of a 0.65 million tons per annum cement grinding mill, is progressing rapidly. The project remains on track for completion by October 2025, it added.