Al-Futtaim group will be confirming new Renault dealers in Pakistan shortly. Creating the dealership network will draw near the tandem with the opening of a new plant in Karachi to assemble Renault models for the Pakistani market.
Len Hunt, President of Al-Futtaim Automotive said:
“The expectation is that the construction of the plant will commence in the first quarter of 2018. The finalisation of the transaction remains subject to a number of conditions, mainly relating to relevant regulatory approvals from Pakistani authorities.”
If the whole thing goes as per the plan, sales of the assembled models could start from 2019. Particulars such as the investments and the future production facility at the Karachi plant have not been revealed.
This would be Al-Futtaim’s second venture in Pakistan, where it also manufactures tractors and generators via its subsidiary Al-Ghazi Tractors.
Len Hunt turned down to name the Renault models that will emerge out of the Karachi plant. Nevertheless he added:
“We have an exciting Renault product line-up for the Pakistani market and the products we introduce will be built to the same specifications as in Europe. The information on the model line-up will be confirmed in due course.”
The Renault plant will be completely -owned by Al-Futtaim Automotive, which has secured “long-term, exclusive agreements” with the French carmaker.
The Pakistan’s move sets up quite a big step-up for the UAE business. It possess stakes in car manufacturing operations in Kenya and Egypt, however this will be the first time it is moving into a new land with a fully-owned venture. The timing of the move into Pakistan appears quite favorable too, as between July and end October, just over 70,000 new cars were sold in the market.
Consumer demand appears to be running at rather stable levels, and the economy too has been buzzing along for the better part of the last two years.
Len Hunt further added:
“We will confirm the details of the independent dealers and showrooms. Pakistani consumers can expect to see world-class Renault sales and after-sales facilities. The Al-Futtaim has maintained a strong and mutually supportive partnership with Renault over many years.”
The Karachi plant will initiate by assembling Renault’s small and mid-size cars. It would be attention-grabbing to see whether the line-up will also take in the maker’s smaller SUV models as well.