French automobile company ties up with Al Futtaim to build and sell cars in Pakistan
World-renowned French car maker Renault has signed an agreement with the UAE’s Al-Futtaim Automotive to assemble and distribute vehicles in Pakistan.
“Groupe Renault is delighted to extend its international footprint by entering Pakistan, a fast-growing market with a 10 per cent annual growth rate,” said Fabrice Cambolive, the senior vice president and chairman of the Africa Middle-East India region for Renault.
“We aim to bring our latest products and cutting-edge technology and set new benchmarks of safety and quality in the market.”
Renault cars will be built at a plant in Karachi from the first quarter of 2018. Car sales will begin in 2019 which will be ramped up in 2020, the companies said in a joint statement.
As is customary for such projects, the finalization of the transaction remains subject to a number of conditions, mainly relating to relevant regulatory approvals from Pakistani authorities.
The agreements will see Groupe Renault bring its latest products and technological know-how, whilst Al-Futtaim, through its new subsidiary Al-Futtaim Automotive Pakistan (Private) Limited, will establish a new manufacturing and assembly plant, and exclusively distribute Renault cars through its extensive knowledge of the market.
“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. We are very excited to represent Groupe Renault which is among the top automotive brands worldwide, and a leading European car manufacturer entering this market.” said Len Hunt, President of Al-Futtaim Automotive.
“We will endeavor 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,” Len added.
Al-Futtaim has numerous businesses across 29 countries. Its global automotive operations extend to 11 markets across the Middle East, Africa and South Asia, and Pakistan represents one of the most dynamic opportunities in these regions, in particular due to the new Automotive Development Policy.