Samsung Electronics is looking to expand its mobile device manufacturing capabilities in Pakistan. The company has reportedly entered an agreement with Lucky Motor Corporation — a joint venture by Lucky Corp. and Kia Motors — for the purpose of manufacturing phones locally.
According to a notice from Lucky Motor Corporation, the company will manufacture Samsung mobile phones at its automobile plant at Port Qasim. The factory will, of course, be repurposed for the task.
80% of all mobile phones sold in Pakistan could be manufactured locally by 2022
Samsung’s decision to start manufacturing phones in Pakistan has a lot to do with the government’s Mobile Device Manufacturing Policy (MDMP) launched last year. The Ministry of Industries and Production created the MDMP program to strengthening the local economy and facilitating growth in manufacturing.
The program aims for 80% of all mobile phones sold in Pakistan to be manufactured locally by 2022. That won’t mean 80% of all Samsung phones sold in the country will be manufactured by Lucky Motor Corporation, but a large chunk will.
This strategy will hopefully allow Samsung to have a stronger local supply chain. In turn, lower production costs should lead to more affordable launch prices for mobile phones in Pakistan.
Building phones locally should help the company remain competitive, especially since Chinese rivals such as Vivo, Oppo, and Realme already have manufacturing plants operating in Pakistan.