Renault assembly plant for cars may be established in Pakistan. The French automobile company is to initiate an assembly plant in partnership with Al-Futtaim. Al-Futtaim is a Gulf based business and has global automotive operations that are working in 11 markets of Middle East, Africa and South Asia.
It has been informed that a new Renault assembly plant to be set up in Karachi. An agreement has been inked between Al-Futtaim and Renault.
It is expected that the building of the plant will start in 2018 and sales of the cars to start in 2019.
Al-Futtaim said it will, “invest the amounts needed to make this project a great success, but as privately owned company, we do not reveal financial details.”
This is another step by Renault to enter further into the international market. Pakistan’s economy is growing at a good pace which has resulted in more investments in automobile sector.
Fabrice Cambolive, company’s senior vice president and chairman of the Africa, Middle-East and India region said that, “We aim to bring our latest products and cutting-edge technology and set new benchmarks of safety and quality in the market.”
Len Hunt, president of Al-Futtaim Automotive said, “With a population of over 200 million, a fast-growing economy and a vibrant middle class, Pakistan is undoubtedly a very important strategic growth market for us. Groupe Renault is among the top automotive brands worldwide and a leading European car manufacturer is entering this market. We will endeavour to add real value to the Pakistani auto sector and consumer, and to create a world-class organisation in Pakistan. Al-Futtaim also looks forward to a very long and successful partnership with Groupe Renault.”
Pakistan is seeing great growth in auto sector with giants in shape of Groupe Renault and Al-Futtaim entering Pakistan. However, still number of conditions need to be dealt with before the deal becomes operational.They plan on to bring in latest technology and models to Pakistan.
There is a lot happening in automobile sector as Lucky has announced a joint venture with Kia Motors, while Hyundai Motor Company also plans to assemble plant with textile group Nishat Mills. Volkswagen is also apparently establishing a plant in Karachi.
The auto policy 2016 has greatly helped the automobile sector and is attracting foreign investors. It is great for Pakistan to see this progress.