- Lucky Motor Corporation (LMC) has suspended fresh bookings for the Peugeot 2008 but denies that production has stopped.
- Petrol prices rose after the Middle East conflict began in February, pushing buyers towards electrified cars.
- LMC has cut the 2008 Active to Rs5.799m and the Allure to Rs6.499m, subject to terms and conditions.
- LMC has signed an agreement with China's GAC to assemble its vehicles in Pakistan.
Fresh bookings for the Peugeot 2008 have been suspended in Pakistan, four years after Lucky Motor Corporation launched it with considerable fanfare. The company says the assembly line is still running, but dealers and industry sources paint a more uncertain picture.
The 2008 arrived in 2022 as the country's only locally assembled European SUV, in a market long led by Japanese, Korean and, more recently, Chinese brands.
What the company says
LMC Chief Executive Muhammad Faisal confirmed that the company has stopped accepting new orders. He rejected claims that the assembly line has been shut down.
He said the company is delivering vehicles that were booked earlier and still has Peugeot orders to fulfil. According to him, LMC has assembled more than 6,000 Peugeot vehicles at its Port Bin Qasim Industrial Park plant since the first quarter of 2022.
Mr Faisal added that all Kia service centres can provide after-sales service to Peugeot customers, and that parts remain in stock.
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,
Muhammad Faisal, Chief Executive, Lucky Motor Corporation
Conflicting accounts from the market
Some industry sources claim production was quietly halted a few months ago. They say this has unsettled owners worried about after-sales service and the supply of expensive parts.
Dealers outside Karachi gave differing accounts. Some said only fresh bookings had stopped, while others said production had ended. LMC denies the latter.
On Rashid Minhas Road in Karachi, Macca Motors, once an authorised Peugeot showroom, now displays vehicles from the Chinese brand GAC. A showroom employee confirmed that Peugeot bookings had been suspended.
LMC's website still lists five dedicated Peugeot showrooms, but market sources claim they no longer operate as such. No Peugeot was on offer at North Karachi's Sunday Car Bazaar, considered the city's main used-car market.
Fuel prices and a changing market
Petrol prices rose sharply after the Middle East conflict began in February, driving buyers towards various types of electrified vehicles. A petrol-only 1,200cc SUV has ended up on the wrong side of that shift.
Other petrol models have struggled too. Honda Atlas Cars recently discontinued the Honda BR-V, and LMC cut prices on two Kia Sportage hybrids on 3 November, by Rs700,000 and Rs800,000 respectively.
The Peugeot has also been marked down. The 2008 Active is now listed at Rs5.799 million, down from Rs6.999m, and the Allure at Rs6.499m, down from Rs7.799m. Both offers carry terms and conditions.
| Variant | Earlier price (Rs million) | Current price (Rs million) |
|---|---|---|
| 2008 Active | 6.999 | 5.799 |
| 2008 Allure | 7.799 | 6.499 |
Owners praise the car, worry about costs
Owners praised the SUV's looks, driving experience, comfort, suspension and durability, saying these put it ahead of Japanese, Korean and Chinese rivals. Their concerns centred on running costs, parts availability and resale value.
One owner described fuel economy of 8 to 8.5 kilometres per litre as a serious drawback, even with petrol prices now easing. He said he paid Rs7.5m two years ago and would now get only Rs5.5-5.7m if he sold.
Another owner said LMC had told existing customers nothing about the model's future and had not assured them of parts supply.
Timeline
- Mid-2019LMC signs an MoU and expression of interest with Groupe PSA, now part of Stellantis
- 2021LMC signs a licence and technical assistance agreement with Stellantis
- 2022Assembly of the Peugeot 2008 begins in Pakistan
- FebruaryThe Middle East conflict begins and petrol prices rise sharply
- 3 NovemberLMC cuts prices of two Kia Sportage hybrid variants by Rs700,000 and Rs800,000
LMC's pivot towards China
LMC's partnership with Peugeot began in mid-2019 with an MoU and expression of interest with Groupe PSA, now part of Stellantis. In 2021 it signed a licence and technical assistance agreement to assemble and distribute the brand in Pakistan.
Earlier this year, the company signed a deal with China's Guangzhou Automobile Group (GAC) to launch and assemble its vehicles locally.
Mr Faisal said the Kia Sportage was "going strong". He said the Picanto had completed its lifecycle and that the new Stonic 1.4 serves as its replacement for now, while a new-generation Picanto is being studied for feasibility.
LMC says it will keep delivering Peugeots already booked and is studying whether to bring a new-generation Picanto to Pakistan. It has also signed an agreement with GAC to launch and assemble its vehicles in Pakistan.
Questions and answers
Has Peugeot 2008 production stopped in Pakistan?
LMC says no. Its chief executive says only fresh bookings are closed and earlier orders are still being delivered. Some industry sources and dealers claim production was halted, which the company denies.
Can existing Peugeot owners still get service and parts?
According to LMC, all Kia service centres can service Peugeots and parts remain in stock. Some owners say the company has not given them assurances about future parts supply.
Why is the Peugeot 2008 struggling in Pakistan?
Petrol prices rose after the Middle East conflict began in February, and buyers moved to electrified vehicles. Owners also cited fuel economy, running costs, parts availability and resale value as concerns.
Image: Alexander-93 / Wikimedia Commons, CC BY-SA 4.0
