Renault to start assembling cars in Pakistan by 2018, says Board of Investment

‘The French car manufacturer’s decision to invest in country is outcome of efforts by Finance Minister Ishaq...

ISLAMABAD: French automobile manufacturer Renault will start assembling cars in Pakistan by 2018, the Board of Investment (BoI) revealed on Thursday.

“Renault has decided to invest in Pakistan. They will start assembling cars in Pakistan by 2018,” the BoI said in a statement, claiming the development was the outcome of the “hectic efforts and persuasion” by Finance Minister Ishaq Dar.

“During Eidul Azha holidays, Finance Minister Ishaq Dar and Dr Miftah Ismail, chairman BoI, visited France and met the top leadership of Renault,” the communiqué added.

The French automaker Renault decides to invest in Pakistan. Showing it's confidence in the new Auto policy and govt's economic management. 1

— Miftah Ismail (@MiftahIsmail) November 3, 2016

France with me to meet with Renault and give them confidence to invest here. Today is the result. PM's economic vision working for Pak. 3/3

— Miftah Ismail (@MiftahIsmail) November 3, 2016

“The company will invest $100 million to expand the capacity of Ghandara plant where it will assemble the vehicles”, said Miftah Ismail, Chairman BoI told The Express Tribune.

Pakistan has long been struggling to bring at least one foreign new brand to break the monopoly of the existing three dominant players.

The Duster could be available at a price of around Rs2.5 million, which is even lower than the prices of 1500cc Japanese made cars, said the Board's officials. The company will also introduce up to 1200cc cars to cater the needs of the upper-middle class, the officials added.

The finance minister had in September met representatives of the two vehicle manufacturers in Paris and briefed them about the country’s automobile policy, which offered attractive incentives and concessions to foreign investors.

Pakistan 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.

Established in 1899, the automobile company produces a range of cars and vans, and has also manufactured trucks, tractors and tanks, among others vehicles in the past.