Lucky Cement Limited — one of Pakistan’s most diversified conglomerates — has raised concerns over growing competition in the country’s automobile sector, warning that an influx of new Chinese car brands and the liberalization of used car imports could reshape the market dynamics.
In its director’s report released on Tuesday, the company acknowledged that while the overall auto market is gradually recovering from recent economic slowdowns, the competitive environment is becoming increasingly intense.
“Competition is intensifying with the entry of new and additional Chinese brands in the market as well as the government’s decision to liberalize the commercial import of used cars,” the report stated.
Auto Sector Encountering New Challenges
The organization noted that the arrival of Chinese brands — offering feature-packed, lower-priced vehicles — has challenged the dominance of established manufacturers. Simultaneously, the government’s move to permit more commercial imports of used vehicles has further added pressure on local car assemblers already coping with high production costs and fluctuating demand.
Despite these challenges, Lucky Cement expressed optimism about the resilience and adaptability of its automotive arm, Lucky Motor Corporation (LMC). The report emphasized that LMC is well-positioned to maintain profitability and competitiveness, supported by new model launches and strategic realignments as the market rebounds.
Expanding Footprint in Smartphone Manufacturing
Beyond the automotive sector, Lucky Cement also highlighted promising developments in its smartphone manufacturing business, which continues to register steady growth. The report pointed out that Pakistan’s low-cost smartphone market holds vast potential due to the increasing demand for affordable yet high-quality devices.
“LMC has shifted its focus towards producing affordable smartphones, aiming to strengthen Samsung’s market position by catering to the rising demand for budget-friendly devices,” the report said.
A Diversified Outlook
Experts of the industry keep on believing Lucky’s ability to navigate both the automobile and smartphone sectors depicts its strong adaptability amid evolving market conditions. As Pakistan’s economy gradually stabilizes, the company emerges focused on long-term growth, diversification, and sustaining its competitive edge in an increasingly crowded market.