KARACHI: Pakistan is set to get its first European car following the signing of an expression of interest (EoI) and a memorandum of understanding (MoU)between Lucky Motors Ltd (LML) and Groupe PSA of France in mid-May.

Under the EoI and MoU, LML will assemble, manufacture, market, distribute and sell PSA passenger cars and light commercial vehicles in Pakistan. The group has planned to assemble PSA vehicles at Lucky Motors automobile manufacturing facility at Bin Qasim Industrial Park.

LML, a Younus Brothers Group’s company, is already bringing Korea’s Kia brand vehicles to Pakistan.

Groupe PSA is a French multinational manufacturer of automobiles and motorcycles sold under the Peugeot, Citroën, DS, Opel and Vauxhall brands. Peugeot is the largest PSA brand in Europe.

Talking to Dawn on Friday, CEO LML Asif Rizvi said the development with Groupe PSA will bring a paradigm change in Pakistan by introducing locally made European cars. We have applied to the Board of Investment (BoI) for category A greenfield investment status under the Auto Development Policy (ADP) 2016-21.”

He said necessary definitive agreements with PSA are expected to be executed within the next two months.

“Initially we have decided to assemble Peugeot cars which will be the first European car to arrive in the CKD category in the country.

The new project involves an investment of about $15 million in jigs and fixtures and facility since the LML plant will be used for assembly of the European cars,” he said.

The CEO went on to add that the future of automobile manufacturing in Pakistan must include multi-brand manufacturing of different auto groups, something “which we are laying the foundation for”. “This would give consumers an even wider range of options, through low volume production, besides intensifying competition among the existing and new players,” he said.

The arrival of a French vehicle looks pretty encouraging keeping in view the uncertain prospect of $165 million Al Futtiam-Renault project.

The ADP 2016-2021 had attracted investment of more than $1.3 billion so far from foreign investors who are at various stages of setting up their projects.

Published in Dawn, June 1st, 2019