Pakistan’s telecommunications regulator – Pakistan Telecommunications Authority (PTA), with a decision that might seem rather strange from the outside, Lucky Motor Corporation‘s (LMC) Samsung announced its approval to manufacture portable devices.
Lucky Motor Corporation, Pakistan’s local car manufacturer. Lucky Group and South Korean Kia Motors is a joint venture in the middle, responsible for the production and distribution of Kia brand cars. But now Samsung brand mobile phones will be produced in this company.
The agreement between Samsung and Lucky Motors was signed last July. Current production facility LMC in Karachi car factory and is scheduled for completion by the end of 2021.
Samsung’s decision to partner with a car manufacturer for production may seem unusual. According to Pakistani brokerage house and research firm Topline Securities, Samsung has started to establish factories in the region to serve its domestic and export markets. For example, Samsung Bangladesh also uses a local factory established in 2018 to manufacture 95 percent of the 2.5 million portable devices sold in the country.