Al-Futtaim Puts Renault Project on Hold

Al-Futtaim Puts Renault Project on Hold 1

According to sources, Al-Futtaim Group which was in process of introducing Renault cars in Pakistan has put a hold on its investment. The French automaker has reportedly cancelled the licensing agreement with the UAE conglomerate and has no interest to enter Pakistani market.

This is because of the weakening economic situation of the country as Renault thinks the investment for the project in Pakistan isnโ€™t feasible anymore. Interestingly, on his recent visit to Pakistan, French senator Pascal Allizard said Renault is keen to set up manufacturing plant in Pakistan.

Related: Renault Keen to Set up Manufacturing Plant in Pakistan: French Senator Allizard

It is therefore not clear at this stage whether Renault will partner with another group to make an entry in Pakistan or not. As prior to Al-Futtaim, Renault was also in talks with Ghandhara to set up its production base in the country.

Al-Futtaim Puts Renault Project on Hold 2

Al-Futtaim got the Greenfield investment status last year under the Auto Policy 2016-21. Renaultโ€™s $230 million investment was the biggest among all new comers. Al-Futtaim had also acquired 54 acres of land to set up an assembly plant in the Faisalabad Industrial Estate Development and Management Company (FIEDMC), the largest industrial zone in the country. The plant was supposed to have installed capacity of 50,000 vehicles per year and the company had indicated to roll out 5 vehicle models during the initial stages of operations.

Although there is no official announcement from Al-Futtaim or Groupe Renault as of yet, however from the looks of it, and considering the pace of development on this project, it is quite likely the end of chapter of Renault cars in Pakistan.

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About UsmanAnsari

A 3d animation professional with over 19 years of industry experience, an avid car enthusiast, petrolhead and social media influencer. Formerly written for PakWheels as well as major publications including Dawn. Founder of CarSpiritPK.com

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Nazeer Asif
Nazeer Asif
1 year ago

this is sad.. but “joh bhaag gaia wo bach gaia aor joh aa gaia woh phass gia”. Doing business in Pakistan is no longer viable sir

Muhammad Muaaz
Muhammad Muaaz
1 year ago

1 bohat hi pohanchi hui hasti ne kaha tha:
Hamari humumat ayegi to investor bhagay bhagy ayengy, log kahengy hum apna pesa Pakistan main invest krna chahty hain
Summary: ๐Ÿ˜‚๐Ÿ˜‚๐Ÿ˜‚๐Ÿ˜‚