We have been hearing the news that Renault is coming to Pakistan since 2006. It took over ten years with the Auto Development Policy (ADP) 2016-21 for this dream to materialize. The French automaker has availed Greenfield Status in collaboration with Al-Futtaim Automotive Pakistan (Pvt) Ltd. This status will enable Renault to invest in Pakistan by installing independent and new automotive assembly and manufacturing facilities for the production of cars. With the help of ADP, the company will get an incentive-based growth opportunity in the country.
Now, a French lawmaker has stated that Renault has been keen to manufacture cars in Pakistan. French Senator Pascal Allizard made the remarks during a press conference in our capital, Islamabad. He has assured that apart from Renault, more business ventures will come to Pakistan and invest in their respective fields.
Allizard is a part of the French delegation who is on a visit to Pakistan. The delegation was briefed by officials of Board of Investment (BoI). Both sides agreed to collaborate in different sectors. The French lawmaker said France, as well as the entire Europe, was keenly interested in China-Pakistan Economic Corridor (CPEC).
RENAULT’S SLOW PROGRESS IN PAKISTAN
In 2017, the company had inked MoU (Memorandum of Understanding) with UAE’s Majid Al Futtaim—an Emirati company to set up a factory in Pakistan to produce vehicles. President of Al Futtaim Automotive Len Hunt had said that Pakistan has a good middle-class population and the market has great potential. He added that it is a strategic market for them and they are very much excited to represent Renault. The company is planning to launch its iconic Duster SUV to take the local market by storm, and in my opinion, Renault’s entry into Pakistan will surely bring diversity to the local market.
Despite the announcement, the European automaker has moved at turtle’s pace. Renault had acquired land at M-3 Industrial City in special economic zone of Faisalabad back in June 2018, to establish its assembly plant.
On the other hand, One of the famous German auto companies, Volkswagen AG, has collaborated with Premier Motors Limited, a Karachi-based company, to invest $135 million in a bid to make new cars and set up an assembly unit in Pakistan.
The German carmaker was awarded Greenfield Investment Status. It has planned to set up its plant in a special economic zone in Balochistan. On 7th November 2018, the renowned automotive venture Volkswagen AG and Premier Motors Ltd signed the final legal agreement for manufacturing commercial vehicles in Hanover, Germany.
After the ADP, many foreign automakers from Germany, France, Turkey, Korea, China, Japan and UAE have collaborated with other foreign or local companies to build car manufacturing plants in Pakistan. The Government of Pakistan has awarded incentive-based Greenfield Status to 15 new automobile companies who will be investing around $1,169 million in Pakistan. Similarly, old auto companies are investing to revive their nonfunctional units. Dewan Farooque Motors and Ghandhara Nissan Ltd have availed Brownfield Status with their plans to receive an incentive from the government and possibly regain their market share.
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