Dubai-based Al-Futtaim on Tuesday announced an agreement with car giant Groupe Renault for the exclusive assembly and distribution of Renault vehicles in Pakistan.
The agreements will see Groupe Renault bring its latest products, 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 through its extensive knowledge of the market.
The parties expect that construction of the plant will start in the first quarter of 2018 in Karachi with car sales planned to start in 2019, ramping up in 2020.
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, it said in a statement.
Len Hunt, president of Al-Futtaim Automotive, said: “With a population of over 200 million, a fast-growing economy and a vibrant middle-class, Pakistan is undoubtedly a very important strategic growth market for us.
"We are very excited to represent Groupe Renault which is among the top automotive brands worldwide, and a leading European car manufacturer entering this market. We will endeavour to add real value to the Pakistani auto sector and consumer, and to create a world-class organisation in Pakistan.”
Fabrice Cambolive, senior vice president, chairman of the Africa Middle-East India Region of the Groupe Renault, added: "Groupe Renault is delighted to extend its international footprint by entering Pakistan, a fast-growing market with a 10% annual growth rate. By partnering with Al-Futtaim, a very professional and renowned automotive partner, 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 completion of the transaction remains subject to a number of conditions, mainly relating to relevant regulatory approvals from Pakistani authorities, the statement said.For all the latest retail news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.