Dar woos French automakers Renault and Peugeot to invest in Pakistan

[war&peace]

Among French automakers, in my personal opinion Citroen is the best.

 

[RPK]

Renault is nearly impossible because their parent group Renault-Nissan already has presence in Pakistan through Gandhara. Nissan (Gandhara) was seen testing its Datsun Go in Lahore few weeks back.

Renault - Nissan has manufacturing plant in India. currently then are running 30% of its capacity so it is impossible for them setup plant in pakistan. may be they will export from India to Pakistan through Dubai as usual

 

[RazorMC]

Renault - Nissan has manufacturing plant in India. currently then are running 30% of its capacity so it is impossible for them setup plant in pakistan. may be they will export from India to Pakistan through Dubai as usual

Sunny 1.3 is being made in India to reduce costs.

My personal experience makes me say it's garbage.
The build quality is terrible and the car wobbles on highways where even smaller cars do better.

 

[Acknowledge]

Peugeot is planning to set up a factory in an Asian country to reduce manufacturing costs. The front runners are the Philippines and India. India might just steal this one because it already has the infrastructure to manufacture cars.

If they make their decision after April 2017. Probably India.
If they make their decision before April 2017. Probably Phillipines.

Despite our large market, South East Asian nations have been able to snag some pretty large manufacturing investments.

It has everything to do with
1. Ease of business and
2.Logistics cost and
3.taxes.

EoB is higher in SEA.
Logistics cost is lower owing to better infra
Corporate tax rates in SEA are much lower than in India.

By 2017 Aril, our EoB should be much better than now and so would our corporate tax rates be substantially lower than now(but still higher than SEA).
Corporate tax rate is being reduced from current 33%(after cess and surcharges) to 25% and GST being introduced which plans to unify India into one common market drastically cutting red tape, compliance costs and tax rates of different products)

Our logistics cost would still be higher as even though the current govt has started building a lot of infra, it takes atleast 10 years for it to show any tangible difference on a nationwide scale.

Sunny 1.3 is being made in India to reduce costs.

My personal experience makes me say it's garbage.
The build quality is terrible and the car wobbles on highways where even smaller cars do better.

Well, No one's manufacturing in India because it is a place for high innovation in manufacturing.
Its almost always to reduce costs.

But the quality level the company maintains however is a corporate decision. A beemer is also made in India to get sold in Middle East and a Ford in India to get sold in Africa. It depends on what the corporate decides is 'good enough' for the market it intends to get sold to.

The same factory produces different variants of different quality of the same car.

 

[Bouncer]

Renault - Nissan has manufacturing plant in India. currently then are running 30% of its capacity so it is impossible for them setup plant in pakistan. may be they will export from India to Pakistan through Dubai as usual

How many automobile plants are running idle in India and how many of them are exporting to Pakistan? Zero.

Its a sad reality that unless Kashmir is resolved we are not going to see much trade between Pakistan and India.

 

[VCheng]

True
They might finally opt for a viable business plan if all the trying fails

Wont have any other choice

That is the problem: there is no new manufacturer that can start to make cars in Pakistan and turn a profit, in the present environment with established monopolies.

 

[General General]

So what have Honda, Toyota and Suzuki been doing all these years in the country?

They set up assembly plants, rather than manufacturing. Manufacturing a mechanically and electronically complex modern car is something entirely different and requires a different set of qualified employees.

 

[marbella]

Most of the renaults are ugly from inside and outside tóó..

 

[denel]

Dar woos French automakers Renault and Peugeot to invest in Pakistan
By APP
Published: September 15, 2016
130SHARES
SHARE TWEET
Ishaq Dar. PHOTO: REUTERS

ISLAMABAD: Finance Minister Ishaq Dar has encouraged two leading French automobile manufacturers, Renault and Peugeot, to pour investment and grab a slice of the expanding vehicle market in Pakistan.

Meeting representatives of the two vehicle manufacturers in Paris on Wednesday, Dar briefed them about the recently announced automobile policy in Pakistan, which offered attractive incentives and concessions to foreign investors, according to a message received from the French capital.

Automobile industry: Pakistan woos Renault-Nissan in investment push

The minister emphasised that with improved growth of Pakistan’s economy over the last three years, reflected in macroeconomic stability, sustained gross domestic product growth, stable exchange rate and higher consumer spending, the demand for new cars had grown sharply in the country. He invited them to set up their manufacturing plants in the light of the new policy and rising consumer demand.

Senior executives of both Renault and Peugeot praised the turnaround in Pakistan’s economy and expressed interest in investing in the automobile sector.

Published in The Express Tribune, September 16th, 2016.

You must be very desperate... rubbish french cars which never work. Peugeot 504/404 was in the by gone era worth it.

 

[krash]

They set up assembly plants, rather than manufacturing. Manufacturing a mechanically and electronically complex modern car is something entirely different and requires a different set of qualified employees.

Honda, Suzuki and Toyota import engines and gearboxes i.e. some critical components, that too not for all the cars. The rest is all manufactured here, not just assembled. As dictated by the government, it is mandatory for a minimum percentage of the parts to be manufactured within the country. The engines and gearboxes are brought in due to economies of scale, not because it is rocket science to produce them.

This is the trend throughout the world. The Honda vehicles sold in Canada and the US, for example, aren't manufactured a 100% in the respective countries either. The Accords manufactured there have 30% of their parts imported. Ironically, a lot of the US brand cars manufactured in the States have parts imported from Canada in them.

Percentage of local parts conforms to the government's policy. Local vendors are continuously patronized to develop parts locally. The quality of local parts is thoroughly checked to meet stringent international standards.

http://www.honda.com.pk/About

Back when it was only assembly based parts used to cost a fortune due to import duties. I remember when my mom got the first city launched in Pakistan its headlight cost around 20k each and then before the next model was launched it had dropped down to 3.3k because then it was being manufactured locally.

 

[v9s]

They set up assembly plants, rather than manufacturing. Manufacturing a mechanically and electronically complex modern car is something entirely different and requires a different set of qualified employees.

All car plants do assembly. Manufacturing of components is done by vendors, which DOES happen in Pakistan. 60% of the Corolla is localized and 50-70% of the Civic is localized.

Manufacturing isn't the hard part - it's the designing that's the hard part.

 

[N.Siddiqui]

All car plants do assembly. Manufacturing of components is done by vendors, which DOES happen in Pakistan. 60% of the Corolla is localized and 50-70% of the Civic is localized.

Manufacturing isn't the hard part - it's the designing that's the hard part.

That's correct, there is no such thing as a car manufacturing plant, it is always a car assembly plant/unit. For smaller cars the deletion level is actually more than 70%, all parts made in Pakistan. The local Pakistani vendor industry which makes all the car parts was worth more than 200 billion Rs. a couple of years ago, now must be more.

The local manufacturing/deletion in motorcycles is actually up to 90%. So this is a misconception that cars are just assembled in Pakistan through CKD kits or all the parts are imported.

Check the local vendors manufacturing at PAAPAM, website, Pakistan Association of Automotive Parts and Accessories Manufacturers.

 

[Sliver]

what about chinese automakers? cant they set shop in Pakistan?

 

[marbella]

what about chinese automakers? cant they set shop in Pakistan?

Let Chinese invest in what they are good at..
Cars- German. Food - Italian. Salary- American.

 

[majid mehmood]

yar this dar just wAnt to make money just like wht he did VW he told to come in pak and then japanese monopoly paid him money and then VW (volkswagen) were betrayed