Business

Dar woos French automakers Renault and Peugeot to invest in Pakistan

Senior executives of both Renault and Peugeot praised the turnaround in Pakistan’s economy

APP September 15, 2016

Ishaq Dar. PHOTO: REUTERS

ISLAMABAD: Finance Minister Ishaq Dar has encouraged two leading French automobile manufacturers, Renault and Peugeot, to pour investment and grab a slice of the expanding vehicle market in Pakistan.

Meeting representatives of the two vehicle manufacturers in Paris on Wednesday, Dar briefed them about the recently announced automobile policy in Pakistan, which offered attractive incentives and concessions to foreign investors, according to a message received from the French capital.

Automobile industry: Pakistan woos Renault-Nissan in investment push

The minister emphasised that with improved growth of Pakistan’s economy over the last three years, reflected in macroeconomic stability, sustained gross domestic product growth, stable exchange rate and higher consumer spending, the demand for new cars had grown sharply in the country. He invited them to set up their manufacturing plants in the light of the new policy and rising consumer demand.

Senior executives of both Renault and Peugeot praised the turnaround in Pakistan’s economy and expressed interest in investing in the automobile sector.

Published in The Express Tribune, September 16^th, 2016.

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COMMENTS (10)

Mohsin | 8 years ago | Reply Earlier Korean model was launched but little success, recently Yamaha set up Plant and start assemblying, They could only solid 15,000 units out of target 50,000 units in very first year. It is challenging for a new comer to grab a reasonable mindshare of consumers related to their products. Price, Brand Image, Warranty and shape play on onto buying decision. They can make entry into 600-1000 cc to snatch share from Suzuki.

Woz ahmed | 8 years ago | Reply @Khalid Khan: Sir , do you have any proof ? If so am happy to offer my legal fees for free, but sadly I suspect this is just rumour or heresay.

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quatro | 8 years ago | Reply Pakistan domestic market has been largely limited to low end cars that don't meet international stds for safety/emissions - makes it tough to find companies willing to invest in what many would consider a tiny market. Pakistan should focus on attracting car mfg for export possibilities rather than domestic consumption ... similar to Mexico ---- but that raises the same issues that impair most foreign investment - corruption, lousy judiciary, xenophobia, and terrorism. It's a big World and there are plenty of countries that investors find more appealing.

Mr Obvious | 8 years ago | Reply I recall that Pakistan was willing to let a car mfg plant go out of business is refused to allow a part only made in India enter Pakistan. That ring any bells? If your were Renault or Peugeot would you build a car plant in Pakistan?

AJ | 8 years ago | Reply What stops the Chinese from building one car plant is something I always wonder. I am sure everyone will lineup to purchase their next ride from their dear friends .

Abdullah Shah | 8 years ago | Reply While there has never been a restriction on any motor making company to enter Pakistan, the rulers successfully keep the fools fooled that European Car makers will come and break the monopoly. Well just check VW Prices in Europe and India, it is not at all feasible for them to enter a small Pakistani market with appetite of not more than 200,000 vehicles a year. The best this nation will get is a rip off from Chinese companies who will make money while you will be thanking them while bent forward and backward. The Japanese cos are bad because they give you "tin" soon you will see plants inaugurated by PM and CM of Chinese brands who will supply cars with card board bodies, and you will thank them as all this will be done under CPEC.

Khalid Khan | 8 years ago | Reply This is the finance minister minister's move to extort money from the 3 auto assemblers in Pakistan who have a monopoly and they are selling cheap sub standard automobiles at exorbitant prices they will never give up this monopoly. Earlier Volkswagen had themselves offered to setup a auto manufacturing plant in the country but nothing happened as a los of money was paid to stop this move..

Haseeb Khan | 8 years ago | Reply FM knows very well it is very difficult for manufacturing sector to do business in Pakistan. FBR and tax laws make life miserable.

Syme | 8 years ago | Reply Invitation ain't necessary for investors and action speaks louder than words. Law and order is one important thing which the want to bury beneath rhetorics of opportunities for foreign investors. Carmakers want to sell cars and make profit and an ordinary Joe understands this equation and if they are not coming to Pakistan then one has to do a bit if introspection. Volkswagen is a different story, let us know about Chinese car manufacturers who are providing the parts to Germans and Americans. Yes , I am talking about FAW plant. What's hindering government to legislate for safer cars and low emission. ECC decision for atleast RON 90 fuel is a good start however , more should be fine for cleaner environment.

Mehran Khan | 8 years ago | Reply The day Volkswagen group enters Pakistan, that day people of Pakistan will realize how badly they got ripped off by low grade Toyotas & Suzuki's. I don't think French cars will sustain the current Pakistani market but I am 100% certain that VW can easily break this monopoly, giving chance to other companies to enter the market.

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