Al-Futtaim Puts Renault Project on Hold

[CSPK]

According to sources, Al-Futtaim Group which was in process of introducing Renault cars in Pakistan has put a hold on its investment. The French automaker has reportedly cancelled the licensing agreement with the UAE conglomerate and has no interest to enter Pakistani market.

This is because of the weakening economic situation of the country as Renault thinks the investment for the project in Pakistan isn’t feasible anymore. Interestingly, on his recent visit to Pakistan, French senator Pascal Allizard said Renault is keen to set up manufacturing plant in Pakistan.

Related: Renault Keen to Set up Manufacturing Plant in Pakistan: French Senator Allizard

It is therefore not clear at this stage whether Renault will partner with another group to make an entry in Pakistan or not. As prior to Al-Futtaim, Renault was also in talks with Ghandhara to set up its production base in the country.

Al-Futtaim got the Greenfield investment status last year under the Auto Policy 2016-21. Renault’s $230 million investment was the biggest among all new comers. Al-Futtaim had also acquired 54 acres of land to set up an assembly plant in the Faisalabad Industrial Estate Development and Management Company (FIEDMC), the largest industrial zone in the country. The plant was supposed to have installed capacity of 50,000 vehicles per year and the company had indicated to roll out 5 vehicle models during the initial stages of operations.

Although there is no official announcement from Al-Futtaim or Groupe Renault as of yet, however from the looks of it, and considering the pace of development on this project, it is quite likely the end of chapter of Renault cars in Pakistan.

From: https://www.carspiritpk.com/2019/05/14/al-futtaim-puts-renault-project-on-hold/

 

[VCheng]

The French automaker has reportedly cancelled the licensing agreement with the UAE conglomerate and has no interest to enter Pakistani market.

Why am I not surprised? Is it because I told you so?

I will reiterate: the size of the Pakistani market is simply too small to justify large investments in production facilities in the prevailing high tax environment.

 

[Haroon Baloch]

It was bound to happen.

Low purchasing power
High Inflation
Monopoly of Japanese Brands
Safety

It is also related to Renault internal problems. Renault Alliance with Nissan is facing a huge problems after their CEO arrest on corruption charges.



I hope the current government fix the trade deficit , control the inflation & have economic vision for future of establishing economic zones, Boost exports & create jobs.

 

[Baburfromsarmarkand]

French cars have poor resale and reliability . Plus our big 3 manufacturers have the loyalty of the market. It was an uphill battle for Renault.

 

[Trango Towers]

It was bound to happen.

Low purchasing power
High Inflation
Monopoly of Japanese Brands
Safety

It is also related to Renault internal problems. Renault Alliance with Nissan is facing a huge problems after their CEO arrest on corruption charges.



I hope the current government fix the trade deficit , control the inflation & have economic vision for future of establishing economic zones, Boost exports & create jobs.

Low purchasing power.....bro u r very wrong

 

[jupiter2007]

Hopefully Chinese and Korean cars can put a big dent in Japsnese monopoly.

 

[Nothing]

Why am I not surprised? Is it because I told you so?

I will reiterate: the size of the Pakistani market is simply too small to justify large investments in production facilities in the prevailing high tax environment.

It can be only feasible when they eye for the export market. In the current world environment, there are many countries which are marketing themselves as manufacturing paradise. Pakistan should come up with a scheme where export only industries get tax free environment with special treatment like 1 window clearance, 24/7 power, and land at low rates.

 

[VCheng]

It can be only feasible when they eye for the export market. In the current world environment, there are many countries which are marketing themselves as manufacturing paradise. Pakistan should come up with a scheme where export only industries get tax free environment with special treatment like 1 window clearance, 24/7 power, and land at low rates.

Why create more production capacity in Pakistan when there is a glut of capacity worldwide already?

 

[Pan-Islamic-Pakistan]

France is playing similar games with Turkey.

They are a society rife with Islamophobia and pro-Israel sentiment.

They cannot be the friends of Pakistan or any other Muslim nation.

 

[airmarshal]

There might more cancellations or short term closures. The reason is simple. The market in Pakistan for local consumption is not big. Unless government gears auto industry towards export, there is little to no chance of foreign manufacturers setting up shops and be successful.

 

[Cash GK]

According to sources, Al-Futtaim Group which was in process of introducing Renault cars in Pakistan has put a hold on its investment. The French automaker has reportedly cancelled the licensing agreement with the UAE conglomerate and has no interest to enter Pakistani market.

This is because of the weakening economic situation of the country as Renault thinks the investment for the project in Pakistan isn’t feasible anymore. Interestingly, on his recent visit to Pakistan, French senator Pascal Allizard said Renault is keen to set up manufacturing plant in Pakistan.

Related: Renault Keen to Set up Manufacturing Plant in Pakistan: French Senator Allizard

It is therefore not clear at this stage whether Renault will partner with another group to make an entry in Pakistan or not. As prior to Al-Futtaim, Renault was also in talks with Ghandhara to set up its production base in the country.

Al-Futtaim got the Greenfield investment status last year under the Auto Policy 2016-21. Renault’s $230 million investment was the biggest among all new comers. Al-Futtaim had also acquired 54 acres of land to set up an assembly plant in the Faisalabad Industrial Estate Development and Management Company (FIEDMC), the largest industrial zone in the country. The plant was supposed to have installed capacity of 50,000 vehicles per year and the company had indicated to roll out 5 vehicle models during the initial stages of operations.

Although there is no official announcement from Al-Futtaim or Groupe Renault as of yet, however from the looks of it, and considering the pace of development on this project, it is quite likely the end of chapter of Renault cars in Pakistan.

From: https://www.carspiritpk.com/2019/05/14/al-futtaim-puts-renault-project-on-hold/

I told you never trust France and this Arab company is full of Indian workers..it was not possible.i knew it will happen..I have done some projects for al futtaim..for Pakistani getting job in that company is nearly impossible..

 

[Pakhtoon yum]

Hopefully Chinese and Korean cars can put a big dent in Japsnese monopoly.

Or GOP can grow a pair and introduce new environmental policies. Eradicating old Japanese cars, with heavy fines if they dont comply

 

[Max Pain]

France is playing similar games with Turkey.

They are a society rife with Islamophobia and pro-Israel sentiment.

They cannot be the friends of Pakistan or any other Muslim nation.

Stop Blaming France mate. they have a massive plant in Morocco that mostly makes cars for export.

According to sources, Al-Futtaim Group which was in process of introducing Renault cars in Pakistan has put a hold on its investment. The French automaker has reportedly cancelled the licensing agreement with the UAE conglomerate and has no interest to enter Pakistani market.

This is because of the weakening economic situation of the country as Renault thinks the investment for the project in Pakistan isn’t feasible anymore. Interestingly, on his recent visit to Pakistan, French senator Pascal Allizard said Renault is keen to set up manufacturing plant in Pakistan.

Related: Renault Keen to Set up Manufacturing Plant in Pakistan: French Senator Allizard

It is therefore not clear at this stage whether Renault will partner with another group to make an entry in Pakistan or not. As prior to Al-Futtaim, Renault was also in talks with Ghandhara to set up its production base in the country.

Al-Futtaim got the Greenfield investment status last year under the Auto Policy 2016-21. Renault’s $230 million investment was the biggest among all new comers. Al-Futtaim had also acquired 54 acres of land to set up an assembly plant in the Faisalabad Industrial Estate Development and Management Company (FIEDMC), the largest industrial zone in the country. The plant was supposed to have installed capacity of 50,000 vehicles per year and the company had indicated to roll out 5 vehicle models during the initial stages of operations.

Although there is no official announcement from Al-Futtaim or Groupe Renault as of yet, however from the looks of it, and considering the pace of development on this project, it is quite likely the end of chapter of Renault cars in Pakistan.

From: https://www.carspiritpk.com/2019/05/14/al-futtaim-puts-renault-project-on-hold/

This seriously is a very sad news, Renault Kwid is a hot seller in India and It really wouldve been the best option against the mehran and perhaps the only European option against mehran. first our economy has gone down to shite and now this.

looks like it'll take us decades to bring any viable European Automaker for the masses.
we really need to sort our economy out. we are the 5th largest population in the world yet we get the crappiest options at extremely high costs.

 

[Pan-Islamic-Pakistan]

Stop Blaming France mate. they have a massive plant in Morocco that mostly makes cars for export.

They give moral and vocal support to both PKK and BLA. I will blame them for what I see.

They are a destabilizing force in the Muslim world, from Mali, Algeria, Lebanon, Palestine, Syria, Turkey, And they fully support India against Pakistan.

We should take action against them.

 

[Max Pain]

They give moral and vocal support to both PKK and BLA. I will blame them for what I see.

They are a destabilizing force in the Muslim world, from Mali, Algeria, Lebanon, Palestine, Syria, Turkey, And they fully support India against Pakistan.

We should take action against them.

you are blending politics with economics,

in that case China might be our enemy too, after all they made a massive Xiaomi plan that churns out awesome phones. they should've made the plant in their brotherly country Pakistan, there are many other examples too.

French government may be hostile but organizations don't work like that.
like I said, they have a massive plant in Morocco despite France being anti-muslim or so to speak.