Groupe Renault and Al-Futtaim have signed definitive agreements to assemble vehicles in a new plant in Karachi, a statement said on Monday. However, the transaction remains subject to a number of conditions mainly relating to regulatory approvals. The two parties expect that the plant will be built starting the first quarter of 2018. Car sales will begin in 2019 and be ramped up in 2020.
Renault suspended talks with GNL as per a notice that the former sent to the Pakistan Stock Exchange (PSX) last Friday. GNL informed stock investors that the company, in collaboration with a potential partner, was in talks with Alliance (Renault-plus-Nissan). However, owing to commercial reasons, GNL’s arrangements with the potential partner could not materialise. From then on, Nissan has been in discussion with GNL while Renault suspended talks, it said. “They, however, shared their view that Pakistan is an alliance project and they aim to select only one partner for Renault and Nissan models in Pakistan,” it added.
Groupe Renault is extending its international footprint by entering Pakistan, a fast-growing market with a 10 per cent annual growth rate. By partnering with Al-Futtaim, a renowned automotive partner, Groupe Renault aims to become a major player in Pakistan, said the statement. “We aim to bring our latest products and cutting-edge technology and set new benchmarks of safety and quality in the market,” said Fabrice Cambolive, company’s senior vice president and chairman of the Africa, Middle-East and India region.
“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,” said Len Hunt, president of Al-Futtaim Automotive.