Groupe Renault, a French multinational automobile manufacturer, and UAE-based Al-Futtaim have signed definitive agreements for the exclusive assembly and distribution of Renault vehicles in Pakistan.
 
The agreements will see Groupe Renault bring its latest products and technological know-how, whilst Al-Futtaim, through its new subsidiary Al-Futtaim Automotive Pakistan, will establish a new manufacturing and assembly plant, and exclusively distribute Renault cars through its extensive knowledge of the market, said a statement from the company.

Al-Futtaim has built considerable strength and credibility in delivering great customer experiences through its numerous businesses across 29 countries, it said.

Al-Futtaim 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 added.

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 parties expect that the plant will be built starting the first quarter of 2018 in Karachi as per Groupe Renault standards, and car sales are planned to start in 2019, ramping up in 2020, said a statement.

Fabrice Cambolive, senior vice president, chairman of the Africa Middle-East India region of the Groupe Renault, said: “We are delighted to extend our international footprint by entering Pakistan, a fast-growing market with a 10 per cent annual growth rate.”

“By partnering with Al-Futtaim, a very professional and renowned automotive partner, we aim to become a major player in Pakistan,” he said.

“We aim to bring our latest products and cutting-edge technology and set new benchmarks of safety and quality in the market,” he added.

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 Groupe Renault which is among the top automotive brands worldwide, and a leading European car manufacturer entering this market. We will endeavour to add real value to the Pakistani auto sector and consumer, and to create a world-class organisation in Pakistan,” he said.

“We also look forward to a very long and successful partnership with Groupe Renault,” he added. – TradeArabia News Service