Dubai-based Al-Futtaim on Tuesday announced an agreement with car giant Groupe Renault for the exclusive assembly and distribution of Renault vehicles in Pakistan. The agreements will see Groupe Renault bring its latest products, 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.
The parties expect that construction of the plant will start in the first quarter of 2018 in Karachi with car sales planned to start in 2019, ramping up in 2020.Al-Futtaim’s global automotive operations extend to 11 markets across the Middle East, Africa, and South Asia, and Pakistan represents one of the most dynamic opportunities in these regions, in particular, due to the new Automotive Development Policy, it said in a statement.
Len Hunt, president of Al-Futtaim Automotive, said: “With a population of over 200 million, a fast-growing economy and a vibrant middle-class, Pakistan is undoubtedly a very important strategic growth market for us. “We are very excited to represent Group 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 consumer, and to create a world-class organization in Pakistan.”
Fabrice Cambolive, senior vice president, chairman of the Africa Middle-East India Region of the Group. Renault, added: “Group Renault is delighted to extend its international footprint by entering Pakistan, a fast-growing market with a 10% annual growth rate. By partnering with Al-Futtaim, a professional and renowned automotive partner, Group Renault aims to become a major player in Pakistan.
“We aim to bring our latest products and cutting-edge technology and set new benchmarks of safety and quality in the market.”The completion of the transaction remains subject to a number of conditions, mainly relating to relevant regulatory approvals from Pakistani authorities, the statement said.
No.of Reads (53)