@nick and alithegreat,
You are both correct, this car in Petrol engine variant would be give it the winning/surviving edge.
KM must have done their homework properly and have learned from Adam Motors lesson. Its is more prudent and less risky to get a design from outside and promote it as your own, as oppose to try to do everything yourself, in house, specially for a relatively new, start up company.
Both KM and AMC, have strong ties with Chinese automakers. They must have tried to negotiate with their Chinese partners to sell them the rights to make an 800cc car in Pakistan, but run into some snags, long term royalties issues. So, this new approach by KM, to try to aquire a firm in Canada, and use its R&D and implement in Pak, with their own modifications, i.e. using 800cc engine, etc. makes sense.
KM, already has the access to 800cc engines, that it uses for its Changan Pick ups, they will just have to make some minor adjustments and this car will be fit for Pakistani road conditions, and customer preferences in the 3 to 4 Lakh range.
The matching bumpers option will greatly enhance the looks, which are not bad. They got the dimensions correct, the rear, side and front alot look proportionally accurate. Hopefully, this 3rd indiginous Pakistani automaker, after Adam Motors and TMC, will have all the ducks in order, and have learned from the lessons of the other new automakers, to try to make a local Car. Making cars is not like making lolly pops, it takes alot of pains to put all the systems come together (designing, acquiring technology, assembling, and finally effectively marketing it to the end user).
India's autoscene situation is alot different.
We are facing alot more tougher challenges than them, and have a relatively small market, but even considering all this, we are still making a good progress.
Indians have the huge market and that's their biggest asset. They can sell anything that runs on petrol, and still make alot of money, (i.e. Ambassador has been selling for 50 years, without much competition and it still sells) Now anyone can put up a plant there and sell its cars, made by extremely cheap labour, $2500 car is only possible in India.
But in Pakistan, the automakers have to contend with public that is hooked on Imports, bureaucratic complexities, connections, deal making, on top of it all, the highly skeptical public and bent on resale/reputation, extreme brand loyalty.
Lets all hope they succeed. So, the Pakistanis can also have better choices (like the rest of the world) and don't have to pay an arm and a leg for car's that are 25 years old in design (mehran).