According to a recent report, French automaker Renault will start vehicle production in Pakistan in 2020. Renault is venturing in Pakistan in collaboration with Al-Futtaim group, one of the biggest conglomerates of the United Arab Emirates (UAE) with an investment of $140 million.
The company has acquired 54 acres of land to set up an automobile assembly plant in the Faisalabad Industrial Estate Development and Management Company (FIEDMC), the largest industrial zone in the country. The plant will have installed capacity of 50,000 vehicles per year and as per reports the company might roll out 5 vehicle variants during the initial stages of operations.
FIEDMC Chief Operating Officer Aamir Saleemi while talking to The Express Tribune said:
The Al Futtaim-Renault joint venture will adopt latest technology for the car assembly plant with all the safety equipment. Renault is expected to introduce latest vehicles and technology in Pakistan’s market in an attempt to break the monopoly of the three dominating Japanese assemblers – Suzuki, Toyota and Honda.
Al-Futtaim has its footprints in 29 countries and global automotive operations in 11 markets across Africa, the Middle East and South Asia. While the Al-Futtaim-Renault joint venture would bring significant foreign direct investment to Pakistan and create many direct and indirect jobs, which would eventually improve living standards of people in the country.
Renault intends to become a major car assembler in Pakistan, and will establish a comprehensive dealership network for smooth sales of its vehicles across the country. Renault cars may hit the roads as early as June 2020. Display offices of the Al-Futtaim-Renault venture may be built by the end of 2019 as work on many offices has begun in different cities of Pakistan.