Pakistan’s Lucky Motor Corporation (LMC) is likely to introduce KIA Stonic and Peugeot 2008 in the coming months, as it eyes to become the only company in Pakistan to assemble vehicles of two different brands.
The KIA Stonic would launch in Pakistan in October, say market sources whereas Peugeot 2008 would be launched in November. The vehicles will be locally assembled at the KIA plant located in Port Qasim, informed the source.
Back in February, LMC launched KIA Sorento, which has three different variants: the 2.4-litre Front Wheel Drive, 2.4L All-Wheel Drive, and 3.5L Front Wheel Drive.
KIA Stonic is a subcompact crossover SUV (B-segment) manufactured by Kia Motors. Peugeot 2008, is also subcompact crossover SUV (B-segment) produced by the PSA Group, later named as Stellantis.
Seeking incentives from the country’s earlier auto policy which expired in 2021, a number of companies have announced local assembly in Pakistan. Companies like Hyundai Nishat Motor Private Limited ('Hyundai Pakistan') were established under the auspices of the Auto Development Policy 16-21 (ADP).
Market sources added that another brand could enter the market in the coming days as well.
Experts suggest the local auto industry has become competitive with the entry of new brands.
“Earlier, only three brands (i.e. Honda, Toyota, and Suzuki) dominated the auto segment but now consumers have more options. This has pushed automakers to improve their quality, options, and dynamics in order to remain competitive in the market,” said an auto-sector expert.
Market sources suggest that auto companies will also move towards hybrid vehicles. Days ago, Indus Motor Company (IMC), the maker of Toyota vehicles in Pakistan, announced that it would invest $100 million in the local production of hybrid electric vehicles.
The $100mn amount will be invested over the period of three years, informed the company in its filing to the Pakistan Stock Exchange.
Experts are optimistic that the local auto industry would record high growth in coming years, which would not only help generate employment but would also spur the growth of secondary industries.
The government has already set a production target of 500,000 units by the end of its tenure.