Renault has signed a definitive agreement with Al-Futtaim, a global automotive operations company that's present in 29 countries worldwide, to produce and sell vehicles in Pakistan.
As part of the arrangement, the French automaker will bring its latest products and technological know-how into the new market. Al-Futtaim, on the other hand, will have to establish a new manufacturing and assembly plant, and to distribute the brand's vehicles, through its new subsidiary, Al-Futtaim Automotive Pakistan (Private) Limited.
"Group Renault is delighted to extend its international footprint by entering Pakistan, a fast-growing market with a 10 percent annual growth rate", said the company's Senior VP and Chairman of Africa Middle-East India Region, Fabrice Cambolive. "By partnering with Al-Futtaim, a very professional and renowned automotive partner, Groupe Renault aims to become a major player in Pakistan."
"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", added Al-Futtaim Automotive's President, Len Hunt. "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."
Renault and Al-Futtaim still have to finalize the transaction, as it remains subject to a number of conditions, most of which are related to relevant regulatory approvals from Pakistani authorities.
However, both parties expect work on the new facility to start in the first quarter of 2018 in the capital of the country, Karachi, while car sales should commence in 2019 and ramp up one year later.