Automotive Industry News
ISLAMABAD: French car manufacturer (automotive industry) Renault plans to setup a
manufacturing plant in Pakistan to fetch a smart share of the rapidly growing cars
market, Business92 reported.
“Renault has decided to invest in Pakistan. They will start assembling cars in
Pakistan by 2018,” an official statement of Board of Investment (BoI) said Thursday.
Chairman BoI Miftah Ismail had been in talks with big players including
Volkswagen, Peugeot, Renault, Fiat and Nissan. In September, Miftah Ismail took
Finance Minister Ishaq Dar to France, where they persuaded Renault to invest in Pakistan.
Moreover, the Pakistan Muslim League (PML-N) government has also been wooing foreign
investment since it came into power in 2013. The economy has also reached its fastest
pace since 2008 and GDP is expected to grow at the rate of 5 percent in ongoing fiscal (FY17).
Furthermoe, the government had also recently announced incentive for the foreign automakers (automotive industry) and allow them to import their plants duty-free.
Industry analysts believe the induction of a world class car maker would not only
increase competition but also put a dent on the monopoly of Suzuki, Toyota and
Honda besides help lowering the prices.