Peugeot 2008: Lucky Motor Suspends New Bookings Amid Shift to Hybrid Vehicles

KARACHI: Lucky Motor Corporation (LMC) has suspended fresh bookings for its locally assembled Peugeot 2008 SUV, raising questions about the model’s future in Pakistan as consumers increasingly turn towards hybrid and electric vehicles.

Launched in 2022 with considerable fanfare, the Peugeot 2008 introduced a European automotive brand into a market traditionally dominated by Japanese, Korean and, more recently, Chinese manufacturers.

However, rising petrol prices and changing consumer preferences have weakened demand for petrol-powered vehicles. The 1,200cc SUV has struggled to remain competitive as buyers increasingly consider electrified alternatives.

Other petrol-powered models have also faced challenges. Honda Atlas Cars recently discontinued the Honda BR-V, while LMC has reduced prices of its hybrid vehicles. On November 3, the company cut the prices of the 1.6T FWD Kia Sportage L HEV and 1.6T AWD HEV by Rs700,000 and Rs800,000, respectively.

The Peugeot 2008 has also received substantial price reductions. According to LMC’s website, the 2008 Active is now listed at Rs5.799 million, down from Rs6.999 million, while the 2008 Allure is priced at Rs6.499 million compared with its previous price of Rs7.799 million. Both offers are subject to terms and conditions.

LMC Chief Executive Muhammad Faisal confirmed to Dawn that the company had stopped accepting new bookings but rejected reports that production had been discontinued.

Bookings Suspended, Production Continues

“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,” Faisal said.

He added that LMC had assembled more than 6,000 Peugeot vehicles at its Port Bin Qasim Industrial Park facility since the first quarter of 2022.

According to Faisal, all Kia service centres can provide after-sales support to Peugeot owners, while the company continues to maintain parts inventory for the model.

However, some industry sources have claimed that production was quietly halted several months ago, raising concerns among existing owners about future after-sales services and the availability of expensive replacement parts.

Dealers in different cities have also provided conflicting accounts. While some said only fresh bookings had been suspended, others claimed production had ended, a position rejected by LMC.

A visit by Dawn to Rashid Minhas Road in Karachi found that Macca Motors, previously an authorised Peugeot showroom, was now displaying vehicles from Chinese manufacturer GAC. A showroom employee also confirmed that Peugeot bookings had been suspended.

Owners Raise Concerns Over Running Costs and Resale

Although LMC’s website continues to list five dedicated Peugeot showrooms across Islamabad, Sialkot, Karachi and Lahore, market sources claim that some of these outlets are no longer operating exclusively as Peugeot dealerships.

A survey of the Sunday Car Bazaar in Sector 11-D, North Karachi, also found no Peugeot vehicles available for sale during the visit.

Owners who spoke to Dawn praised the SUV’s design, driving experience, comfort, suspension and durability, saying it compared favourably with Japanese, Korean and Chinese competitors.

However, high running costs, concerns over spare parts and weak resale values remained major drawbacks.

One owner said the vehicle’s fuel economy of approximately 8 to 8.5 kilometres per litre had discouraged potential buyers, despite some recent easing in petrol prices.

Another owner said he had purchased the SUV for Rs7.5 million two years ago, but the reduced price of newer models had affected its resale value.

“I purchased it for Rs7.5m two years back, but the new model is now priced at Rs6.5m. I am getting only Rs5.5-5.7m if I sell,” he said.

An existing customer also expressed concern over the lack of communication from LMC regarding the model’s future, particularly assurances about continued spare-parts availability.

Lucky Motor Expands Partnership With Chinese Automaker

LMC’s partnership with Peugeot began in mid-2019, when the company signed a memorandum of understanding and expression of interest with Groupe PSA, now part of the Stellantis Group.

In 2021, then known as Kia Lucky Motors, the company signed a Licence and Technical Assistance Agreement with Stellantis to assemble and distribute Peugeot vehicles in Pakistan.

Earlier this year, LMC entered into an agreement with China’s Guangzhou Automobile Group (GAC) to introduce and assemble its vehicles locally, signalling a broader expansion of its Chinese automotive partnerships.

Faisal said the Kia Sportage continued to perform strongly and remained competitive in its segment. He added that the Picanto had completed its product lifecycle, with the company assessing the feasibility of introducing its next-generation model.

For now, the new Stonic 1.4 is serving as a replacement in the company’s lineup.