WHEN Lucky Motor Corporation (LMC) began assembling the Peugeot 2008 in the year 2022, it was launched with much fanfare. Here was a European name in a market long dominated by Japanese, Korean and, more recently, Chinese brands.

Today, fresh bookings for the SUV have been suspended. At least one of its dealerships now sells Chinese vehicles, and dealers speak cautiously about the model’s future. The company says production has not stopped.

Petrol prices shot up after the Middle East conflict began in February, forcing buyers towards various types of electrified vehicles. A petrol-only 1,200cc European SUV now finds itself on the wrong side of that move.

Other petrol models have also struggled. Honda Atlas Cars recently discontinued the Honda BR-V. LMC’s own hybrids have felt the pressure too. On Nov 3, the company cut the prices of the 1.6T FWD Kia Sportage L HEV and the 1.6T AWD HEV by Rs700,000 and Rs800,000, respectively.

The Peugeot’s prices have also been cut sharply. LMC’s website lists the 2008 Active at Rs5.799 million, down from Rs6.999m. The 2008 Allure is listed at Rs6.499m, down from Rs7.799m. Both offers are subject to terms and conditions.

Lucky Motor’s Peugeot 2008 arrived in 2022 as Pakistan’s only locally assembled European SUV. Four years later, high petrol prices and a move by buyers to electrified cars have left it out of step with the market.

LMC Chief Executive Muhammad Faisal confirmed to Dawn that the company has stopped taking new orders, but denied claims that the assembly line has also been shut down.

‘Only bookings closed’

“We are not taking fresh bookings at the moment and are delivering those vehicles which have been booked earlier. We still have orders for Peugeot which we are serving and therefore have not stopped production,” he said.

According to Mr Faisal, LMC has assembled more than 6,000 Peugeot vehicles at its plant in the Port Bin Qasim Industrial Park since the first quarter of 2022. He said all Kia service centres can provide after-sales service to Peugeot customers. “We still have parts in stock for Peugeot,” he added.

Not everyone in the market tells the same story, though. Some industry sources claim that production was quietly halted a few months ago. They say this has worried owners about future after-sales service and the supply of expensive parts.

Dealers upcountry gave Dawn differing accounts. Some said only fresh bookings had been suspended, while others said production had been discontinued, but LMC denies this.

Dawn visited Rashid Minhas Road in Karachi and found that Macca Motors, once an authorised Peugeot showroom, now displays vehicles from the Chinese brand GAC. A showroom employee also confirmed that bookings for the Peugeot had been suspended.

Good car at the wrong time

LMC’s website still lists five dedicated Peugeot showrooms: one each in Islamabad, Sialkot and Karachi, and two in Lahore. Market sources, however, claim the dedicated outlets are no longer operating as such.

Dawn also surveyed the Sunday Car Bazaar in Sector 11-D, North Karachi, which is considered the city’s main used-car market, but no Peugeot was on offer.

Owners who spoke to Dawn had a lot of praise for the vehicle’s looks, driving experience, comfort, suspension, and durability, which they said put it ahead of its Japanese, Korean, and Chinese rivals.

Their main concerns were about running costs, parts availability and poor resale value.

One owner said the car’s fuel economy of 8 to 8.5 kilometres per litre was a serious drawback. Petrol prices are now easing, he said, but the mileage still puts buyers off.

“I purchased it for Rs7.5m two years back, but the new model is now priced at Rs6.5m. I am getting only Rs5.5-5.7m if I sell,” he said.

Another owner said LMC had not told existing customers anything about the model’s future. It had also not assured them that parts would remain available, which was hurting the reputation of a good SUV.

LMC’s partnership with Peugeot began in mid-2019, when it signed an MoU and expression of interest with Groupe PSA, now part of the Stellantis Group.

The pivot towards China

The company was then known as Kia Lucky Motors. In 2021, it signed a Licence and Technical Assistance Agreement with Stellantis to assemble and distribute Peugeot vehicles in Pakistan.

Earlier this year, it signed an agreement with China’s Guangzhou Automobile Group (GAC) to launch and assemble them in Pakistan.

Mr Faisal said the Kia Sportage was “going strong” and could compete with other models in its segment. He said the Picanto had completed its lifecycle. The company is studying whether its new-generation model is feasible, and for now the new Stonic 1.4 serves as a replacement.

Published in Dawn, November 15th, 2026