KARACHI: Pakistani car lovers can breathe a huge sigh of relief as the Renault-Nissan alliance is all set to launch its affordable fuel efficient vehicles in Pakistan by 2018 with collaboration of Ghandhara Nissan Limited (GNL) and Al-Futtaim, UAE.
Reanult, the second largest automaker in France, and 10th largest in the world, will set up a plant in Pakistan to launch the fuel-efficient and roomy sedan cars.
The project will attract investment of around $100 million including approximately 60 percent foreign investment. Numerous direct and indirect opportunities for around 10,000 young, educated and skilled Pakistanis will also be created through the venture.
“GNL is proud to join hands with Renault, one of the largest global automobile manufacturers and Al-Futtaim, UAE. The company will produce the vehicles at its existing assembly plant located at Port Qasim’, said Sheharyar Aslam, company secretary at GNL.
The Finance Minister, lshaq Dar, along with the Minister of State and Chairman Board of Investment (BOI), Miftah Ismail, and senior officials of GNL met the top management of Renault a few
weeks ago to finalize the partnership.
‘We highly appreciate the progressive vision and dedicated efforts of the Government of Pakistan for announcing the new auto policy, a move that will ensure an even playing field to new entrants’, Aslam added.
Marked with innovative design, state-of-the-art technology, latest safety environmental features and affordability, Renault passenger cars will soon be a driving force for happiness and excitement.
Aslam further said the major attraction for companies such as Renault is the new policy which allows these investors to import tax free manufacturing plant equipment and pay less taxes on import of parts when assembly starts plus various other incentives that can help new entrants in the automotive industry to set up their operations in Pakistan.
Engineering Development Board (EDB) CEO Tariq Ijaz Chaudhry while talking to Daily Times said, “As expected, the automotive development policy 2016-21 turned out to be fruitful as first European brand has decided to invest in Pakistan.”
He said another European brand Volkswagen is also keen to enter in Pakistani auto market and in this regard due diligence is being done by the company; however, in neighboring country the automaker is having some troubles over significant variations which might resulting in delayed entrance of Volkswagen in Pakistan.
‘All members aimed to break cartel of existing local auto assemblers devised comprehensive auto policy and the new auto policy will create healthy competition benefiting end consumers’, Chaudhry added.’ Unfortunately, local auto assemblers failed to bring innovation in auto sector in last 40 years as they even didn’t transform the decade old models, so arrival of new entrants in auto sector is the need of an hour’.
Assembling of Renault cars in Pakistan will not even bring Foreign Direct Investment and initiate competition, it will create vast opportunities for vendor industry to enhance production and quality to export level, he added.
GNL having the sale licensee for the distribution of Nissan vehicles in CBU condition in Pakistan, is the only automobile company in the country assembling complete range of product i.e. passengers cars, light commercial vehicles and heavy-duty trucks and buses.