Renault formally announces entry into Pakistan

[Devil Soul]

Renault formally announces entry into Pakistan
By Our Correspondent
Published: November 20, 2017
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The parties expect that the plant will be built starting the first quarter of 2018 in Karachi as per Groupe Renault standards. PHOTO: REUTERS

KARACHI: Pakistan is set to see the entry of another major auto player with the announcement of Groupe Renault and Al-Futtaim that they have signed definitive agreements for the exclusive assembly and distribution of Renault vehicles in Pakistan.

Renault, which was earlier also involved in talks with Ghandhara Nissan, will now be in partnership with the UAE-based conglomerate, stated a press release issued on Monday.

“Groupe Renault is delighted to extend its international footprint by entering Pakistan, a fast-growing market with a 10% annual growth rate,” said Fabrice Cambolive, senior vice president, chairman of the Africa Middle-East India Region of the Groupe Renault.

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“By partnering with Al-Futtaim, Groupe Renault aims to become a major player in Pakistan. We aim to bring our latest products and cutting-edge technology and set new benchmarks of safety and quality in the market.

The parties expect that the plant will be built starting the first quarter of 2018 in Karachi as per Groupe Renault standards, and car sales are planned to start in 2019, ramping up in 2020.

Meanwhile, the president of Al-Futtaim Automotive, Len Hunt said that Pakistan’s 200 million population, growing economy and “vibrant” middle class will make it an important strategic growth market.

The agreements will see Groupe Renault bring its latest products and technological know-how, while Al-Futtaim, through its new subsidiary Al-Futtaim Automotive Pakistan (Private) Limited, will establish a new manufacturing and assembly plant, and exclusively distribute Renault cars.

Al-Futtaim’s global automotive operations extend to 11 markets across the Middle East, Africa and South Asia, and Pakistan represents one of the most dynamic opportunities in these regions, in particular due to the new Automotive Development Policy.

The finalisation of the transaction remains subject to a number of conditions, mainly relating to relevant regulatory approvals from Pakistani authorities.

 

[Indus Pakistan]

Another mafia gangster moves in to set up shop in Pakistan.

 

[VCheng]

Groupe Renault and Al-Futtaim that they have signed definitive agreements for the exclusive assembly and distribution of Renault vehicles in Pakistan.

Assembly and distribution.

Al-Futtaim, through its new subsidiary Al-Futtaim Automotive Pakistan (Private) Limited, will establish a new manufacturing and assembly plant, and exclusively distribute Renault cars.

So it assembly, or manufacturing?

The finalisation of the transaction remains subject to a number of conditions, mainly relating to relevant regulatory approvals from Pakistani authorities.

And whatever it is, it is not finalized or even approved yet.

 

[Laozi]

looking for an midsize SUV then Duster is an excellent buy

 

[pin gu]

Another mafia gangster moves in to set up shop in Pakistan.

Competition is always good for economy .

 

[Papa Dragon]

Renault lost it's credibility and has been termed as a hoax and deceitful brand by motorheads in India

Why did Renault rebrand the Duster-based Kaptur to Captur to mimic their Clio-based European car?

To mislead people into believing this -

They call it an international success! (EDIT on 4th October: Renault has taken the video down after a thread on Team-BHP went up). You can view the deceitful video in the following links

However, as Team-BHPians are aware - the car we are getting in the Indian market is entirely different & has been developed recently for the Russian market, and then targeted for developing markets like Brazil and India. It is based on the Dacia B0 platform - same as the Duster and is even different in dimensions as compared to the European car. The similarity mostly ends with the looks and the name, whereas both of these are different vehicles underneath.

The European car is smaller, but a more premium package, built on the Clio platform. More than anything - it comes with a host of safety features that earned it a 5 star safety rating. The car was deemed expensive for emerging markets like ours and hence the Duster's basic underpinnings were used to develop a look-alike for such markets. The Duster has already received slack for its compromised safety, including the usage of small airbags for the Indian market.

To confuse matters more, the 'Kaptur' was renamed to 'Captur' for the Indian market causing much confusion even among learned enthusiasts about the origins of the vehicle. Some related posts here.

Renault however - has gone to questionable levels now IMHO - by calling the car an international success - clearly using the fame of the European car to sell it's lookalike counterpart in the Indian market. They have highlighted the recognition received in countries like the UK, where it's clearly a different car and a different platform that is being sold - with only the same name.

To take an example - It's like Apple deciding that the iPhone X is too costly for India, so they decide to make the iPhone 7 look like the X. But then, they price it as a premium product and advertise it as an iPhone X itself, showing the glowing reviews it has got internationally.

 

[v9s]

Assembly and distribution.



So it assembly, or manufacturing?

Both! To qualify for the Greenfield investment benefits + CKD tax breaks, they need to get approved by EDB which sets targets for localization.

 

[DESERT FIGHTER]

looking for an midsize SUV then Duster is an excellent buy

Duster isnt an SUV... Its a cross over at best.

RAV4 failed in Pak ... was in the same class as Duster.

 

[HannibalBarca]

Duster isnt an SUV... Its a cross over at best.

RAV4 failed in Pak ... was in the same class as Duster.

yes...but price is quite cheaper for the Duster....

 

[VCheng]

Both! To qualify for the Greenfield investment benefits + CKD tax breaks, they need to get approved by EDB which sets targets for localization.

That would be great, if the final agreement is approved. Manufacturing is the key as assembly will not offer the price breaks the consumers are hoping for in their new choices.

 

[Tps43]

Duster isnt an SUV... Its a cross over at best.

RAV4 failed in Pak ... was in the same class as Duster.

Current Rav4 competes with Honda CR V , Hyundai Santafe Sports, Kia sorento , Nissan Xtrail and Duster is a crossover but Rav4 is compact SUV.

 

[DESERT FIGHTER]

Current Rav4 competes with Honda CR V , Hyundai Santafe Sports, Kia sorento , Nissan Xtrail and Duster is a crossover but Rav4 is compact SUV.

RAV4 is an insult to SUVs... its a car bro.. even 2 door suzuki vitara is better.

 

[Indus Pakistan]

Competition is always good for economy .

Competition to a monopolistic cartel ran by mafia gangsters is a anathema like sex is to a 80 year old catholic nun.

And sobering fact. Czech Republic with population smaller than Lahore city has one car manufacturer - Skoda that made over 1.2 million cars last year. In Pakistan 7 car manufacturers are producing ten times less. Or for every 10 vehicles that Skoda makes 7 Pakistani car manufacturers manage 1. That is ridicalous. You are never going to achieve economies of scale. In UK plants that produce less than 1 million cars shut down because they could not be competitive against mass production.

What we have in Pakistan is a racket to make money. Even a cottage industry would be better than this.

 

[volatile]

Another mafia gangster moves in to set up shop in Pakistan.

Im afraid the mafia will continue to come till there is going to be stabilization in the country and continuation of economic policies

RAV4 is an insult to SUVs... its a car bro.. even 2 door suzuki vitara is better.

Duster and Nissan Juke are cross overs
RAV 4 is urban SUV or smaller SUV

 

[friendly_troll96]

Competition to a monopolistic cartel ran by mafia gangsters is a anathema like sex is to a 80 year old catholic nun.

And sobering fact. Czech Republic with population smaller than Lahore city has one car manufacturer - Skoda that made over 1.2 million cars last year. In Pakistan 7 car manufacturers are producing ten times less. Or for every 10 vehicles that Skoda makes 7 Pakistani car manufacturers manage 1. That is ridicalous. You are never going to achieve economies of scale. In UK plants that produce less than 1 million cars shut down because they could not be competitive against mass production.

What we have in Pakistan is a racket to make money. Even a cottage industry would be better than this.