Auto sector moves ahead amid uncertainty

KARACHI: Amid an uncertain business environment due to the ongoing war in the Middle East since Feb 28, one of the leading bike assemblers has announced a plan for expansion, while Lucky Motor Corporation (LMC) has entered into an exclusive partnership with a Chinese company to bring world-class vehicles.

Atlas Honda Ltd (AHL), a joint venture between Atlas Group and Honda Motor Company, has announced an investment plan to expand its motorcycle operations in Pakistan.

During the meeting held on Monday, the board approved a capital expenditure of Rs5.3 billion (approximately $20 million) for the next fiscal year.

In a stock filing, the company said the investment will be made to enhance capacity, automation and productivity. As a result, the company’s rated annual capacity will increase to two million units. AHL sold 1.081 million units in 8MFY26, up from 811,395 units in the same period last fiscal.

In a major development for Pakistan’s automotive sector, Lucky Mot­or Corporation (LMC) has signed an exclusive partnership agreement with Guangzhou Automobile Group Co Ltd (GAC Group) — a Fortune 500 company for the past 13 consecutive years and ranked number one in JD Power China’s vehicle quality ranking (IQS) for the last eight consecutive years.

GAC is a Chinese state-owned enterprise and widely recognised for producing Toyota and Honda vehicles for the Chinese market and its high degree of vertical integration for its own brands under Hyptec, Aion and GAC under the ONE GAC umbrella.

This strategic partnership will enable LMC to offer Pakistani consumers robust build quality and competitively priced NEVs backed by advanced battery technology, while also supporting long-term sustainability through battery lifecycle management and commercial battery-swapping stations.

LMC is set to announce the commercial rollout plan in the coming weeks, along with product portfolio, technology plans and dealership network, it said on Monday.

The alliance further strengthens LMC’s uniquely diversified global portfolio — spanning Korean (Kia), European (Peugeot), and now Chinese (GAC) brands.

Published in Dawn, March 31st, 2026