Dar woos French automakers Renault and Peugeot to invest in Pakistan

[Devil Soul]

Dar woos French automakers Renault and Peugeot to invest in Pakistan
By APP
Published: September 15, 2016
130SHARES
SHARE TWEET
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 16th, 2016.

 

[General General]

Peugeot is planning to set up a factory in an Asian country to reduce manufacturing costs. The front runners are the Philippines and India. India might just steal this one because it already has the infrastructure to manufacture cars.
Pakistan will need to have the facilities in place to offer them to these investors as setting up a manufacturing base from scratch will increase the added costs.
This is why Pakistan should vie for a technology procurement from any car manufacturer. They can always buy the Sa'ab car manufacturing rights as they stopped producing cars a few years ago. A shame really, their cars were sturdy, efficient and classy. If a Sa'ab manufacturing factory is set up in Pakistan, the brand in Sweden will able to make some money from a technology they no longer earn from. Also, it will be the foot in the door for Pakistan to produce a car of international standard.

 

[Hyde]

Peaugeot is a damn good car with unbelievable cheap price compared to European standard. I have got a vehicle from their sister company Citroen and rate really high about the quality of this vehicle

I am sure Pakistanis will like some of Peugeot's vehicle but I don't think they woll set up anything in Pakistan. Renault is a better option in my opinion but I don't think our current relationship with France is as good where they will ditch more favourable markets and set up its factory in Pakistan. But dealership level of offices might be opened, thats all

 

[Bouncer]

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.

Renault is nearly impossible because their parent group Renault-Nissan already has presence in Pakistan through Gandhara. Nissan (Gandhara) was seen testing its Datsun Go in Lahore few weeks back.

 

[Cherokee]

Open up markets for Indian Cars and Bike we have multiple bikes like these :

Guess the cost : ~ 1400 USD

And like these :

In the longer run If India can export vehicles to west and south america it can do that next door as well .

Also People should read story of how Mohammed and Mahindra became Mahindra and Mahindra after partition .

This is why Pakistan should vie for a technology procurement from any car manufacturer. They can always buy the Sa'ab car manufacturing rights as they stopped producing cars a few years ago. A shame really, their cars were sturdy, efficient and classy. If a Sa'ab manufacturing factory is set up in Pakistan, the brand in Sweden will able to make some money from a technology they no longer earn from. Also, it will be the foot in the door for Pakistan to produce a car of international standard.

Pakistan can also do what India did with Joint Ventures to get tech for eg Maruti Suzuki .

Peugeot-Citroen already has planned a plant in Gujarat .

 

[Viper0011.]

Dar woos French automakers Renault and Peugeot to invest in Pakistan

I said this on here three years ago. Audi, Renault, VW and Ford will be coming to Pakistan!!

 

[50cent]

Guess Samsung also makes cars

 

[Hamartia Antidote]

I said this on here three years ago. Audi, Renault, VW and Ford will be coming to Pakistan!!

Well I hope Renault does better in Pakistan than they do (or more like did) here. I can't even remember what the Renault badge looks like (trying to picture a Renault Alliance)

 

[VCheng]

Well I hope Renault does better in Pakistan than they do (or more like did) here. I can't even remember what the Renault badge looks like (trying to picture a Renault Alliance)

Such wooing means nothing without a corroborating announcement by the manufacturers themselves.

 

[Max Pain]

Such wooing means nothing without a corroborating announcement by the manufacturers themselves.

They're trying
Worth the shot

 

[VCheng]

They're trying
Worth the shot

Trying is good, but it will never be as persuasive as an actual and viable business plan.

 

[Max Pain]

Trying is good, but it will never be as persuasive as an actual and viable business plan.

True
They might finally opt for a viable business plan if all the trying fails

Wont have any other choice

 

[airmarshal]

Pakistan wont get investment of the scale that this govt is expecting. What will Renault or Citroen get building just a few thousand units for local market when across the border it can not only produce cars for huge local market but also export them.

This is a just a wishful thinking. A few thousand additional units of already installed capacity by the cartel of assemblers in Pakistan will cater to the needs of local market. If the government focus is just assemble cars for local market, it does not make any sense at all for big European manufacturers to waste resources for a small market. The attraction is in building cars cheap and export them.

Look at the most recent example of Morocco as success story of automobile production. It has attracted European manufacturers primarily to build cars cheap locally and export the majority of production with a fraction for local market. This is the model to follow.

http://www.automotivemanufacturingsolutions.com/focus/renaults-taste-of-morocco

http://www.economist.com/news/busin...aerospace-industry-north-africa-factories-sun

Before Morocco, Turkey is another shining example.

Nooni Toon govt and their money laundering munshi who they call finance minister dont have a vision for a country. They cant think big.

 

[krash]

Pakistan will need to have the facilities in place to offer them to these investors as setting up a manufacturing base from scratch will increase the added costs.
This is why Pakistan should vie for a technology procurement from any car manufacturer.

So what have Honda, Toyota and Suzuki been doing all these years in the country?

 

[Imran Khan]

even if israel and india export to break suzuki toyota monopoly it will be good