Lucky Cement cautions over growing rivalry from new Chinese brands, used car imports

KARACHI: Lucky Cement Limited has warned that Pakistan’s automobile market is becoming increasingly competitive as new Chinese brands make their way into the country and the government opens doors for the commercial import of used cars.

In its director’s report released on Tuesday, the company said that while the overall outlook for the auto sector is improving, the market is also witnessing greater rivalry. The arrival of more Chinese carmakers and the relaxation in import restrictions are expected to challenge existing players.

According to Business Recorder, despite the growing competition, Lucky Cement remains optimistic about the performance of its automobile arm, Lucky Motor Corporation (LMC). The company said that the introduction of new vehicle models will help LMC protect its profit margins and stay competitive as consumer demand picks up pace.

Smartphone business gains traction

Lucky Cement also highlighted encouraging trends in its smartphone segment, noting rising demand in the low-cost market. The company said that LMC has shifted its focus towards producing more affordable smartphones to strengthen Samsung’s position in Pakistan. The move aligns with the growing appetite for budget-friendly devices among consumers facing inflationary pressures.

Mining operations in Balochistan show potential

The company’s mining venture, National Resources (Pvt.) Limited (NRL), is also making headway. The joint venture, in which Lucky holds a 33.33 percent stake, recently acquired three mining leases in Balochistan. Two of these sites show potential for copper and gold deposits, while the third holds promise for lead and zinc.

According to the company, mobilisation at the sites is under way, with early exploration results appearing positive and pointing towards commercially viable mineral resources.

Iraq expansion on schedule

Meanwhile, Lucky Cement’s overseas operations are progressing steadily. The company said that its expansion project in Samawah, Iraq, which includes building a cement grinding mill with an annual capacity of 0.65 million tons, is moving forward as planned and is expected to be completed by October 2025.

With multiple projects under way across different sectors, Lucky Cement continues to diversify its business portfolio while preparing to navigate tougher competition in key markets.