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 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.”.. see more