French Automaker Renault Agrees to Invest in Pakistan

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Earlier today, the Board of Investment revealed in a Press Release that the French Automobile manufacturer Renault will start assembling cars in Pakistan by 2018.

“As the result of Finance Minister’s hectic efforts and persuasion, Renault has decided to invest in Pakistan. They will start assembling cars in Pakistan by 2018.” the BOI said in a statement.

It should be noted that Finance Minister and Chairman of Board of Investment have made quite a few visits in the last few months to France and had several meetings with the top officials of Renault and Peugeot.

Even more surprising are the statements being released by the Chairman of BOI. And as per The Express Tribune, the chairman elaborated

 The company will invest $100 million to expand the capacity of Ghandara plant where it will assemble the vehicles.

This investment might bring the much-needed diversity in the stagnant, locally manufactured vehicles line-up. It is being speculated that the company will bring the Duster in Pakistan; expected to be priced at PKR 2.5 million. The Express Tribune further elaborates that the company will also introduce 1200 cc cars, which will be aimed to cater the requirements of middle class consumers.

It seems that the government’s strategy to persuade a new player to enter in the local auto-manufacturing market of Pakistan is definitely shaping up for a better outlook.

Also ReadFrench Automakers, Renault and Peugeot, Interested to Invest in Pakistan

 

  • Qasim Cheema

    Great news, around the same time new city will be launching, Honda will be forced to keep down the prices. Also hope that they target the lower middle class with a 6-8 lakh car

  • Sarosh

    They came they lost and they left. This is going to be the end.

    Just like Nissan mitsubishi etc.

    Car buyers need cheap spares and cheap maintenance. Some people will buy it just for the sake of trying a new thing but then sooner or later the same person would be soon at a Toyota dealership buying a corolla. If anything good can happen is the introduction of locally manufactured vitz. Other companies would only loose waste time and then they will leave

  • Shafqat Hussain

    Good news!

    Now we are going to have good compact SUV (Renault Duster), we really need these kind of SUVs, Many people in Pakistan often need to go off-road or hilly areas. Some of our roads looks like off-roads 😛

    It looks like price is bit higher (PKR 2.5 million) but I don’t think we can get any cheaper SUVs here Pakistan. When I see Suzuki is selling Jimny in PKR 2.2 million. Duster is way better SUV than Jimny.

    Renault Duster is already Well known SUV in Pakistan because of Indian commercials .. 🙂

    Best of Luck Renault!

  • Waqas

    Asalamuarleikum I hope i will never seen any Renault car in Pakistan because they are the worst car in the world, they are full of problem’s and absolutely not reliable. I’m a Pakistani from France by the way, Why pakistani don’t bring General Motors Cars they are far away better cars and not that’s expensive, in France i recommanded only Peugeot if you want french car and no more. Peace everyone

  • Chacha Ramzan

    Time Has Changed Now,
    More People Are Buying Vits, Mira & Move.
    Atleast In Lahore.

  • Smokingaces

    Renault Duster for 2.5 million? bhai demagh to kharab nahi ho gya inka? the whole point of Duster is to deliver best small SUV in cheapest possible price? from which point 2.5 million seems like cheapest to you Shaka?

  • Salman Ahmed

    If japanese manufacturers cant manufacture quality cars in pakistan .then it is fool person dream to expect from a french company to mqnufacture quality cars in pakistan

  • Salman Ahmed

    Probably they will assemble a cheaper variant of duster in pakistan and also spare parts come duty free to pakistan .meaning tax will be very low if at all

  • Salman Ahmed

    You missed the line where it says that new entrants will get their spare parts free of tax for assembling the car in pakistan

  • Hassan Mansoor

    Renault will be good addition given they have a full range just have a look at Renault KWID priced at INR 3 lakh (base model price) which roughly translates to PKR 4.5 lakh. It may be priced higher in Pakistan due to Govt. taxes even then it will give PS Suzuki Mehran the run for its money. Renault duster i don’t think will be priced at PKR 2.5 Million, its indian version is priced at 7.64 lakh (base model), but given that 1/3 of auto price in Pakistan is Govt. taxes we can safely assume that it would be priced just under 2 Million. A FAW Sirius is even priced at Rs. 1.8 M so it has to be slightly higher or so I assume. The new entrants would pass on the tax advantage to consumers in form of lower prices to make inroads. The best part would be the ensuing competition (we should hope there is one) for price and quality between the old entrenched assemblers and the new one. PS will inevitably now introduce the held back models before entry of Renault. I wish that Govt. should work hard to bring another auto giant i.e.; WV to Pakistan. It will be a great news for the people of this country, if they are able to do so.

  • Zulfiqar Ali Soomro

    Well we do have Jimny here that sells for over 2M, ever wondered about that

  • Khurram

    For how long? Ultimately, once the new entrants become established, the benefits shall be withdrawn. However, you should know better than to suggest that “spare parts” could be used to assemble cars. Happy waiting for your precious loser cars.

  • Guest

    Nothing would give Mehran a run for its money. Mehran is an established player, each and every mechanic of Pakistan knows how to repair a Mehran, spares are cheap and plenty, even in the remotest corner of Monabao border you can find spare parts of Mehran and Suzuki has recovered its investment a million times by selling Mehran in so many countries.

    Unless some government regulation forces Mehran into obsolescence, market forces are never going to drive it out.

  • Rana

    Attention Renault :- Despite availability of FAW V2 1.3L @Rs10.49 lacs , Pakistani people still prefer Suzuki Cultus @ Rs 11.50 lacs , having no airbags,abs,power window and steering , . Why? Not because of Quality issue , quality can be inspected upon test drive , the reason is Pakistani people are having RESALE ORIENTED MINDSET , before buying any thing they first think RESALE…..Even if Suzuki removes seats from cars , still we will buy suzuki and install seats at our own , … so how you will do??

  • Captain Faraz

    Excellent said ….

  • Guest again

    Even if Suzuki starts beating their customers 10 times with a stick for buying a Suzuki, people would still go to Suzuki to buy another Suzuki and would want to be beaten another 10 times by the stick.

    And Suzuki knows it, that is why PakSuzuki manages to sell their crap.

  • Hassan Mansoor

    You have a right to your opinion and I have to mine. The time will be the ultimate judge bro. I trust some Chinese automaker(s) may also jump into the foray. Those who don’t believe change would come are urged to study the motorcycle industry.

  • Aqeel Zia Nayyer

    its CBU thats why 🙂

  • Zulfiqar Ali Soomro

    its still a Suzuki and its crap. Not quality-wise but has literally no space even in the front and costs over 2m! baffles me

  • As a matter of Fact… I totally Agree with you.

  • Salman Qureshi

    well said

  • Zulfiqar Syed

    Zulfiqar

  • In the past, imported Renault was introduced but miserably failed. Hope this new initiative will succeed.

  • Fizz

    Backward Paki mentality will make sure it fails…

  • Fizz

    Most PAKIS I know eat grass and mud and drive Suzuki only, how is Renault going to tackle this decades old habit…

  • Muntasir

    I saw many FAW V2 in my native city. One of my friend has a one year old MEHRAN in very good condition and not getting a nice offer. Dealer said that imported and new competitors are destroying the market of the Suzuki vehicles. Trend is changing in Pakistan.

  • Hamza Hussain

    you mean No AC,No ABS, No power windows,manual gear box variant. Dear Pakistanis don’t be fooled and keep on buying Xli and Mehran etc

  • Hassan Mansoor

    FAW V2 is good and they are now coming up with 1.0 engine variant to be locally assembled. The FAW XPV is well received in the market now. Renault has had success with its KWID in India with over 75000 vehicles sold in the launch year(2015). The KWID is an SUV inspired design with features which were never offered in an entry level vehicle. Maruti Suzuki remains the market leader in India in entry level vehicle with its new gen ALTO but with renault KWID breathing down its neck. And two other competitors i.e. Hyundai EON and Datsun Redi Go.

  • KhawarNehal

    The customer shall decide with their choice to buy. Also services need to be counted in.

  • H__3

    Honda had the same problems in mid 80s / early 90s. They set up their plant, improved customer service and ensured availability of spare parts. Result: They are competing with Toyota and have a dedicated and loyal clientele of their own now. Renault has the financial muscle as well as international experience. I am sure they will prove themselves as a formidable challenge

  • H__3

    “Why pakistani don’t bring General Motors Cars”. you dont have much of an idea how investments are made – right? Renault may not be ‘ideal’ but if it bring 10000 jobs and more competition in the automobile market then I’ll take it

  • Mathew

    Waqas I agree with you too. Living in Europe I have seen that Renault is the European version of Suzuki (Suzudi). There were some French car imported, when yellow cap started, I guess, it failed. I think…..what is needed in Pakistan better laws and regulations to make Safety and quality in automotive industry Tin daba ( Tine Box ) should not be allowed on the roads.

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