Renault to start assembling cars in Pakistan by 2018, says Board of Investment

[Spy Master]

By News Desk
Published: November 3, 2016
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French automobile manufacturer Renault will start assembling cars in Pakistan by 2018, the Board of Investment (BoI) revealed on Thursday.

“Renault has decided to invest in Pakistan. They will start assembling cars in Pakistan by 2018,” the BoI said in a statement, claiming the development was the outcome of the “hectic efforts and persuasion” by Finance Minister Ishaq Dar.

“During Eidul Azha holidays, Finance Minister Ishaq Dar and Dr Miftah Ismail, chairman BoI, visited France and met the top leadership of Renault,” the communiqué added.

Dar has encouraged Renault and Peugeot, another leading French automobile manufacturer, to invest and benefit from the expanding vehicle market in the country.

Dar woos French automakers Renault and Peugeot to invest in Pakistan

The finance minister had in September met representatives of the two vehicle manufacturers in Paris and briefed them about the country’s automobile policy, which offered attractive incentives and concessions to foreign investors.

Pakistan wants to shake up its Japanese-dominated car market and loosen the grip of Toyota, Honda and Suzuki, whose locally assembled cars are sold at relatively high prices but lag behind imported vehicles in terms of quality and specifications.

Established in 1899, the automobile company produces a range of cars and vans, and has also manufactured trucks, tractors and tanks, among others vehicles in the past.

http://tribune.com.pk/story/1219792...ing-cars-pakistan-2018-says-board-investment/

 

[Faiez]

I don't think so........seems unlikely.

 

[Arsalan]

I don't think so........seems unlikely.

Pakistan have been pushing for this for quite some time now and renault was one of the names being mentioned. However a 2018 assembly means we will start seeing them in market inported as CBUs around mid 2017 and that will give us a better picture.

 

[Sully3]

french cars might make a mark on the small car section f the market like Mehran, Alto etc.

But the real game changer would be if the German Volkswagen comes into PAK, they will eventually kill of Toyota and Honda sales

 

[Faiez]

Pakistan have been pushing for this for quite some time now and renault was one of the names being mentioned. However a 2018 assembly means we will start seeing them in market inported as CBUs around mid 2017 and that will give us a better picture.

And honda, toyota, suzuki are okay with this ?

I doubt that....

 

[Arsalan]

And honda, toyota, suzuki are okay with this ?

I doubt that....

They are not ok.
Suzuki threatened to cancle some 500 mil $ investment (may be upgradation or setting up some new line for another model) and then moved up the threat level by saying they will move to Iran. Honda and Toyota have not been too vocal, not in public atleast.

However, the BoI have had enough, we have had enough! its been quite some time that the concerned authorities have been chasing the car manufacturers for investments and the need for bringing in investment might over power the bribe money after all, FINALLY!!

 

[Faiez]

However, the BoI have had enough

There's no such thing...

They are all on auto industry payroll. Most likely this plan too will be cancelled soon like all others previously. OR, even if Renault does manage to get in, will end same way as KIA, Hyundai etc...

 

[Arsalan]

There's no such thing...

They are all on auto industry payroll. Most likely this plan too will be cancelled soon like all others previously. OR, even if Renault does manage to get in, will end same way as KIA, Hyundai etc...

BoI???
just because you dont know about it do not means it is not there.

If you read the post i already have pointed that how this time it looks like they have had enough. This indicates that i am recognizing the ways toyota, honda or suzuki managed to maintain their monoply in the market. However what i am arguing about is if you look at the amount of effort being put in, this might change this time and the need of investmenst will out shine the lust for easy money. However it wont be right to assume that they will just march in and set up a plant. First CBUs will be injected in the market to see the response and then things will nove from there, that is, IF they do. However there surely is a serious drive to bring in some investment from the auto industry.

 

[Faiez]

BoI???
just because you dont know about it do not means it is not there.

If you read the post i already have pointed that how this time it looks like they have had enough. This indicates that i am recognizing the ways toyota, honda or suzuki managed to maintain their monoply in the market. However what i am arguing about is if you look at the amount of effort being put in, this might change this time and the need of investmenst will out shine the lust for easy money. However it wont be right to assume that they will just march in and set up a plant. First CBUs will be injected in the market to see the response and then things will nove from there, that is, IF they do. However there surely is a serious drive to bring in some investment from the auto industry.

When I said "no such thing", I meant that it's just a sham organization. It doesn't really do anything. It's just to reward senior political workers etc..

If you think BOI can do anything on it's own, then you sir are mistaken. BOI is under direct control of the same people who placed a 50,000 cars order with pak suzuki (rozgar taxi scheme by punjab gov.) that resulted in pak suzuki stock going up more than 50% in less than a few months. Why would certain politicians do such a crazy thing unless they have something to gain, and gain I'm sure they did. Either Renault has paid HUUUUGE sums to certain political leaders or this is just some kind of black mailing thing (the certain politicians want more $$$$$ from the big 3).

 

[boxer_B]

french cars might make a mark on the small car section f the market like Mehran, Alto etc.

But the real game changer would be if the German Volkswagen comes into PAK, they will eventually kill of Toyota and Honda sales

LOL, Have you owned volkswagen ? The models in India are prone to spare parts unavailability like ECU, Tx box etc. Only lower and mid range models are just making their presence felt due to huge customer base and presence of Skoda which shares parts and platform with VW. Low ground clearance along with fuel economy make them bad performer.

Secondly, Renault became hit in India not because of small car but entry segment SUV Duster.

 

[Trisonics]

“Renault has decided to invest in Pakistan. They will start assembling cars in Pakistan by 2018,” the BoI said in a statement, claiming the development was the outcome of the “hectic efforts and persuasion” by Finance Minister Ishaq Dar.

Dar has encouraged Renault and Peugeot, another leading French automobile manufacturer, to invest and benefit from the expanding vehicle market in the country.

The bolded text is what one needs to read and understand. Unless there has been an official statement from Renault, this piece of news looks to be planted to show how Mr. Dar has been doing a good job. I would not read beyond that.

 

[Faiez]

The bolded text is what one needs to read and understand. Unless there has been an official statement from Renault, this piece of news looks to be planted to show how Mr. Dar has been doing a good job. I would not read beyond that.

excellent point...

people here really are gullible !

 

[Rajaraja Chola]

Renault just recently opened a plant in India. VW , BMW everyone has a plant in India. Until unless the demand becomes too great I dont see them opening a plant anytime soon. This is a comment for public consumption by the Minister.

 

[!eon]

Pakistan have been pushing for this for quite some time now and renault was one of the names being mentioned. However a 2018 assembly means we will start seeing them in market inported as CBUs around mid 2017 and that will give us a better picture.

There should be some institutes and further training opportunities for motor mechanics. Most of them are living two decades behind in Pakistan.
Renault autos are more complex than Japanese. Even German mechanics don't happily touch Renos.

 

[DESERT FIGHTER]

LOL, Have you owned volkswagen ? The models in India are prone to spare parts unavailability like ECU, Tx box etc. Only lower and mid range models are just making their presence felt due to huge customer base and presence of Skoda which shares parts and platform with VW. Low ground clearance along with fuel economy make them bad performer.

Secondly, Renault became hit in India not because of small car but entry segment SUV Duster.

More like a cross over than a real SUV.