Al-Futtaim Puts Renault Project on Hold

[jupiter2007]

Or GOP can grow a pair and introduce new environmental policies. Eradicating old Japanese cars, with heavy fines if they dont comply

You are right. they are selling old shitty technology in Pakistan.

 

[nahtanbob]

French cars have poor resale and reliability . Plus our big 3 manufacturers have the loyalty of the market. It was an uphill battle for Renault.

considering all the complaints about existing manufacturers i thought Renault had a chance.

 

[Nothing]

Why create more production capacity in Pakistan when there is a glut of capacity worldwide already?

Good point. The only way it is possible when companies get more incentives (tax, a respite from labor laws, etc.) than current manufacturing locations. A good example is Boeing's North Carolina plan when they had everything in Washinton state. GOP should show more aggressive posture while luring companies. The auto industry, in general, had seen once in lifetime growth in last 10 years. Now all big markets (USA, China, India, and Europe) have started slowing down. On top of it, IMF has predicted slow growth for Pakistan for coming 2-3 years. All these factors will affect investment in the automobile sector. The best way is to bring Chines auto parts manufactures in Pakistan. With the USA imposing sanctions on Chines goods, Pakistan can be proven good launch pad to keep goods flowing for China.

 

[Pubg1]

Pakistan Market is too small for a car manufacturing plant.
Pakistan should follow the Indian route. First manufacture parts for cars. Easier to set up, more flexible and easy to export. Maybe Chinese can set up a plant in Pakistan making crankshafts or something. But do the economics suit even that as Indian companies like bharat forge had excellent technical brains and readily available steel, heat treatment facilities and machining facilities. Also they catered to the local market first.

 

[Sine Nomine]

Why create more production capacity in Pakistan when there is a glut of capacity worldwide already?

Start a war.

 

[Max Pain]

Good point. The only way it is possible when companies get more incentives (tax, a respite from labor laws, etc.) than current manufacturing locations. A good example is Boeing's North Carolina plan when they had everything in Washinton state. GOP should show more aggressive posture while luring companies. The auto industry, in general, had seen once in lifetime growth in last 10 years. Now all big markets (USA, China, India, and Europe) have started slowing down. On top of it, IMF has predicted slow growth for Pakistan for coming 2-3 years. All these factors will affect investment in the automobile sector. The best way is to bring Chines auto parts manufactures in Pakistan. With the USA imposing sanctions on Chines goods, Pakistan can be proven good launch pad to keep goods flowing for China.

I agree, and so far only Chinese and Koreans seems to be investing here, there's this company Called FAW, they are churning out good vehicles which we now can see on our roads more often. other chinese Manufacturers have gained a strong foothold in commercial vehicle market. Having that said diversity is always good and Renault was perhaps the only manufacturer that seemed serious in investing in a plant based in Pakistan.