KARACHI: Another major international automobile manufacturer, Renault is set to enter the exponentially growing Pakistani automobile market as it signed an exclusive agreement with UAE-based conglomerate Al-Futtaim for assembly and distribution of Renault vehicles.
This follows the news of an earlier breakdown of talks between Renault and Ghandara Nissan which was exclusively reported by Profit at the start of November.
Al-Futtaim is said to possess state-of the art technology and robotic arms for car manufacturing.
Fabrice Cambolive, Senior Vice President & Chairman Africa Middle-East India region of Groupe Renault said on the occasion “Groupe Renault is delighted to extend its international footprint by entering Pakistan, a fast-growing market with a 10% annual growth rate.”
This bodes well for Pakistan’s fast-growing automobile market to see international manufacturers entering the fray, as Profit also reported about Volkswagen’s entry into Pakistan earlier this month.
Also on Monday, Profit reported regarding Saazgaar Engineering Works Limited also entered into an agreement with an unnamed Chinese automobile manufacturer for vehicle assembling in Pakistan.
Both parties hope operations at the plant will commence from first quarter in 2018 as per Renault standards and automobile sales will start in 2019 and production will be heightened by 2020.
Cambolive added “By partnering with Al-Futtaim, Groupe Renault aims to become a major player in Pakistan. 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 Al-Futtaim Automotive stated the country’s market would provide strategic growth opportunities besides its 200 million population, growing economy and growing middle class.
This joint venture would result in the creation of a new subsidiary; Al-Futtaim Automotive Pakistan (Private) Limited, which would setup a new assembly and manufacturing plant and only distribute Renault cars.
Finalization of this deal remains contingent upon regulatory approvals, the press release read.