Renault to Assembling Cars by 2018


Renault is the French automobile manufacturer and it has decided to start the assembling of the cars in Pakistan. This is the movie, which this company takes to break the monopoly of the existing industry players by providing the chance to the customers to buy better quality vehicles at the lower prices. This company has decided to invest in Pakistan and it will start assembling of the vehicles by 2018 as the board of Investment has announced it.

Initially, this company will introduce its top class vehicle, SUV, Duster at the much lower price, which will be affordable for most of the clients and they will buy this vehicle. The launching of this vehicle will dominate the players in the country.

The vehicle, Duster will be sold at the affordable rate of Rs.2.5 million, which was the lower price of vehicle of 1500 cc Japanese made cars. The company will introduce about 1200 cc cars to meet the requirements of upper middle class.

The car manufacturing company, Renault will invest the amount of $100 million to expand the capacity of Ghandhara plant to assemble the vehicle as reported by the chairman of BOI Miftah Ismail.

Breaking monopoly

Pakistan is struggling hard to bring at least one international brand in the country so that they can break the monopoly of the three dominant players within the country. When this company will start working in the country, it will dominate three Japanese brands including Honda, Toyota and Suzuki and they assembled the cars locally and also sold in the domestic market. Their rates are high if they are compared with other vehicles in the domestic market.

Renault is the international automobile manufacturing companies, which was established in 1899 and it produced the vast range of cars and vans. This company is included in top 10 global automobile manufacturing company due to its market share. The group has handsome market share in Europe, which is 10% last year and it got success due to its models like Capture, Clio, Duster and Sandero.

Miftah Ismail said that French company will carry out its business activities in Pakistan under the provision of current automobile policy and no benefits have been given to them. the main aim of the auto policy was to introduce new player in auto market to launch the high security features and fuel efficient vehicles at the affordable rates.

Benefits for local market

The company has taken the move for the existing car assemblers to minimize the prices of the brands and during the last fiscal year, the sale of the assembled vehicles was increased 12% and the number of newly produced vehicles reached to 257,752 units as Pakistan Automotive Manufacturers Association has compiled the complete date.

It is also said that the import of the used vehicle was increased to 67% than last year and there are total 53,600 used vehicles, which were imported during the last fiscal year 2015-16 as compared to the 32100 units in the year 2014-15. The government has introduced new policy to impress the Greenfield investment in March this year and they revived the closed auto assembly units within the country. The Engineering Development Board has prepared the engineering side of draft policy and BOI chairman has already prepared the financial part of policy.

The chairman of BOI also confirmed that Nissan will introduce its Datsun model in Pakistan and Renault has shares of 50% in Nissan. The new auto policy is formulated for the revival of sick units and it will allow import of non localized parts at 10% duty and localized parts at 25% for the next three years. The government is providing facility for the off-duty free import of plant and machinery to set up the assembly and manufacturing of the vehicle.

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