Pakistan says Renault agrees to invest in local car plant | Reuters

By Kay Johnson and Laurence Frost

ISLAMABAD/PARIS Pakistan's government said on Thursday that French carmaker Renault is planning to invest in a local assembly plant with first production due to start by 2018. Finance Minister Ishaq Dar met with Renault executives in France in September as a part of a wider efforts to attract more foreign players to its automobile sector, a statement from Prime Minister Nawaz Sharif's office said."As a result of the Finance Minister's efforts and persuasion, Renault has decided to invest in Pakistan," the statement said."They will start assembling cars in Pakistan by 2018."A Renault spokesman in Paris confirmed the plans, saying the company "has entered into exclusive negotiations with Ghandhara and Al Futtaim Groups to develop the Renault brand in Pakistan, including a manufacturing plant on the Ghandara site in Karachi".

Neither side gave a figure for the planned investment.Pakistan has been seeking to attract several foreign car makers with generous offers on import duties, but has faced challenges given fears about the country's long-term political stability and security given attacks by the Taliban and other militants.

Aside from Renault, Dar and other Pakistani officials have met with executives from Volkswagen, PSA Peugeot , Fiat and Nissan.The country wants to shake up its Japanese-dominated car market and loosen the grip of Toyota, Honda and Suzuki, whose locally assembled cars are sold at relatively high prices but lag behind imported vehicles in terms of quality and specifications.Pakistan has a potential market of nearly 200 million people, but just 180,000 cars were sold in the 2014/2015 fiscal year. That compares with more than 2 million passenger vehicles a year in neighbouring India.

Officials have been touting a new car industry policy, skewed in favour of new entrants, that includes offering foreign car manufacturers lower duties as an incentive to set up plants in Pakistan or re-open old sites.The incentives have angered existing market players, some of whom have said publicly they should get similar terms. (Writing by Kay Johnson; Editing by Greg Mahlich)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date: Nov 03, 2016 20:34 PM

Also Watch

Social Media Star: Abhishek Bachchan, Varun Grover reveal how they handle selfies, trolls and broccoli
  • Monday, July 16, 2018 It's a Wrap: Soorma star Diljit Dosanjh and Hockey legend Sandeep Singh in conversation with Parul Sharma
  • Monday, July 16, 2018 Watch: Dalit man in Uttar Pradesh defies decades of prejudice by taking out baraat in Thakur-dominated Nizampur village
  • Monday, July 16, 2018 India's water crisis: After govt apathy, Odisha farmer carves out 3-km canal from hills to tackle scarcity in village
  • Sunday, July 15, 2018 Maurizio Sarri, named as new Chelsea manager, is owner Roman Abramovich's latest gamble in quest for 'perfect football'

Also See