Stellantis Group, which overarches brands such as Peugeot, Citroen, Fiat, Chrysler, Jeep, Alfa Romeo, and Maserati, has signed a License and Technical Assistance Agreement with the local Lucky Motor Corporation (LMC).
According to the agreement, one of Stellantis Group’s European brand’s assembly and distribution will be done by LMC.
LMC is also the manufacturer and distributor of Kia vehicles in Pakistan. Meanwhile, Stellantis Group is the 4th largest car group which was recently formed when US-Italian FIAT Chrysler and the French rival PSA did a merger.
It now has a portfolio of fourteen international brands around the world.
The LMC in mid-2019 had signed an MoU and expression of interest (EoI) with Groupe PSA which is now part of the Stellantis Group.
Last year before achieving the manufacturing license under the government’s new entrant policy, the LMC also informed the government of its intentions to partner with Peugeot, a brand of the Stellantis Group.
Reportedly, LMC is planning to assemble the new vehicles for the current Automotive Development Policy (ADP) period, which expires in June 2021, at the current facility where the Kia vehicles are being manufactured.
According to Pakwheels, Lucky motors are not bound to make/assemble KIA vehicles only in Pakistan as per their working operational venture with KIA. KIA and Peugeot brands will be under the “Lucky Motors”, umbrella.
As per the current information, an investment of 10 million euros is expected in Pakistan by the European brand.
This fruitful partnership could lead to brands like FIAT, Chrysler, Jeep, Dodge, and other car brands’ arrival in Pakistan.
This will be the first locally assembled European brand in Pakistan.
The current ADP has been quite fruitful for Pakistan and the next one is offering more incentives to the international brands to bring their manufacturing and distribution to Pakistan.
As of yet, Korean brands like Hyundai and KIA, and Chinese MG and Changan have set a foothold in Pakistan, giving competition to the existing Big three Japanese brands in Pakistan. Hopefully, the new entrant will provide more freedom of movement to the middle and low-income sectors of the economy.