French Renault ties up with UAE’s Al Futtaim to build, sell cars in Pakistan
KARACHI: The French car maker Renault has signed an agreement with the UAE’s Al-Futtaim Automotive to assemble and distribute its vehicles in Pakistan, a statement said on Monday.
The statement said Groupe Renault and Al-Futtaim signed “definitive agreements for the exclusive assembly and distribution of Renault vehicles in Pakistan.”
“Groupe Renault is delighted to extend its international footprint by entering Pakistan, a fast-growing market with a 10 percent annual growth rate,” said Fabrice Cambolive, senior vice president, chairman of the Africa Middle-East India Region of the Groupe Renault.
The agreements will see Groupe Renault bring its latest products and technological know-how, while 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.
“As is customary for such projects, the finalisation of the transaction remains subject to a number of conditions, mainly relating to relevant regulatory approvals from Pakistani authorities,” the statement said.
The parties expect that the plant will be built, starting in the first quarter of 2018 in Karachi as per the Groupe Renault standards, and car sales are planned to start in 2019, ramping up in 2020.
Cambolive said Groupe Renault aims at becoming a major player in Pakistan by partnering with Al-Futtaim, a very professional and renowned automotive partner. “We aim at bringing our latest products and cutting-edge technology and set new benchmarks of safety and quality in the market,” he said.
Renault considered Pakistan a very important strategic growth market with a population of over 200 million. Len Hunt, president of Al-Futtaim Automotive said the UAE-based company is “very excited to represent Groupe Renault, which is among the top automotive brands worldwide and a leading European car manufacturer entering this market”.
“We will endeavor to add real value to the Pakistani auto sector and consumers, and to create a world-class organisation in Pakistan,” Hunt added. “Al-Futtaim also looks forward to a very long and successful partnership with Groupe Renault.”