Lucky Cement Limited (PSX: LUCK) has warned that competition in the country’s automobile market is heating up due to the arrival of new Chinese brands and the government’s move to allow commercial imports of used cars.
In its director’s report released on Tuesday, the company said that although the automobile sector’s overall outlook is improving, competition is intensifying with more Chinese brands entering the market and the government easing rules for used car imports.
Despite these challenges, Lucky Cement expressed confidence that its subsidiary, Lucky Motor Corporation (LMC), will be able to protect profit margins and strengthen its market position through the launch of new models in the recovering auto sector.
The company also reported encouraging trends in its smartphone division, noting strong potential in the affordable handset segment.
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“To capture this opportunity, LMC has shifted its focus toward manufacturing budget-friendly smartphones, supporting Samsung’s growth in the low-cost mobile phone market,” the report added.
It is pertinent to note here that the firm’s subsidiary Lucky Motor Corporation (LMC) is involved in the assembly, marketing, distribution and sales of Kia and Peugeot products in Pakistan.
