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

[problemfreeleader]

NICE THANKS GOD PAKISTANI NATION GET RID OF HONDA TOYOTA SUZUKI.

 

[PakGuns]

That is the point. All that is changing now and that is why the gov. is also pushing for investments and we might see parties interested in doing so.


Iranian are not idiots!!

Bruh? Number tells different story... Mehran and cultus are top selling cars in Pakistan in 2016-15... I don't have link of report it was issued in pakwheels forum

 

[fitpOsitive]

Zerdari saying: Destroy a business not ready to share the profit. Dewans are just not ready to do that.

 

[third eye]

Renault and other French cars don't have a good reliability record. Unfortunately it is true.

First of all renault is crap car i have renault here in england its keep getting electric faults now and then

What model do you drive ?

I am using a Scala & Duster for over two years , great performance & excellent mileage.

 

[Hyde]

First of all renault is crap car i have renault here in england its keep getting electric faults now and then

I was going to say the same that Renault is a crap car but then I refrained assuming it will play a major role in reducing the monopoly of big three car producers in Pakistan who continue to sell 1980s model for the price of 2016. Renault has produced amazing models and innovative designs which can be encouraging factor for rivals to either introduce latest designs or face lack of sale

 

[Arsalan]

Bruh? Number tells different story... Mehran and cultus are top selling cars in Pakistan in 2016-15... I don't have link of report it was issued in pakwheels forum

They are!!
That is why they were trying to blackmail as well.
However, as i said, they wont be going anywhere anytime soon and it seems that the authorities know this as well and thus the drive to bring in more players.
Also when looking at those numbers do not that there is NO option given by Toyota or Honda in that hatch back category that is being assembled/manufactured by Indus or Atlas!

I was going to say the same that Renault is a crap car but then I refrained assuming it will play a major role in reducing the monopoly of big three car producers in Pakistan who continue to sell 1980s model for the price of 2016. Renault has produced amazing models and innovative designs which can be encouraging factor for rivals to either introduce latest designs or face lack of sale

Plus with VW, Nissan also in the picture renault can be the one to break the ice and lead to more players coming in

The truck market is a whole different market, where Indus, PakSuzuki or Atlas do not compete

The regulations on trucks, customs etc, totally different heading.

And they made as much of a dent as kia made with spectra, classic and sportage combined (which were also marketed/assembled by the same people ?). Or Mitsubishi made with lancer. Only better than Adam(Revo).

The plant (Hyundai plant) was manufacturing both and that is why i made the reference. Showing that there still is potential. As for the cars, you think that Santro was as popular as Spectra? I really really doubt that. Further more, do note that there are no really options in hatch back from Toyota or Honda (that is Pakistan assembled) so by that logic that part of segment of market is also open right?

 

[Taygibay]

For Pakistanis, the interest is the local car market.
If Renault succeeds no matter how terrible its cars
are as some say, it breaks the top trio stranglehold
and as Fallen King remembered can put Nissan &
newly acquired Mitsubishi models at work too.
That's local context : breaking the HTS hold is breaking news.

Next step would be a serious hike for the economy.
By then, such a carmaker group can find its best platform
overall and best mech assembly, pick up the preference
registered in sales for looks and build a local product.
That would change the local market forever.

Check Belgium from the list given by Desert Fighter #53
for proof. They run plants for Audi near Brussels, Ford in
Genk, Opel in Antwerp, Volvo in Ghent, Van Hool's excel-
-lent buses and Truco NV both from nearby Holland.
And yet they have no carmaker of their own!?!

Keep calm and learn prospection & have a great day, Tay.

 

[Faiez]

The plant (Hyundai plant) was manufacturing both and that is why i made the reference. Showing that there still is potential. As for the cars, you think that Santro was as popular as Spectra? I really really doubt that. Further more, do note that there are no really options in hatch back from Toyota or Honda (that is Pakistan assembled) so by that logic that part of segment of market is also open right?

I said santro was as successful as spectra, classic and sportage combined, okay plus minus a little bit...

There is swift, alto, mehran, cultus (suzuki), cuore (toyota/daihatsu). So no, that segment is not open.

 

[Blue Marlin]

They are!!
That is why they were trying to blackmail as well.
However, as i said, they wont be going anywhere anytime soon and it seems that the authorities know this as well and thus the drive to bring in more players.
Also when looking at those numbers do not that there is NO option given by Toyota or Honda in that hatch back category that is being assembled/manufactured by Indus or Atlas!


Plus with VW, Nissan also in the picture renault can be the one to break the ice and lead to more players coming in


The plant (Hyundai plant) was manufacturing both and that is why i made the reference. Showing that there still is potential. As for the cars, you think that Santro was as popular as Spectra? I really really doubt that. Further more, do note that there are no really options in hatch back from Toyota or Honda (that is Pakistan assembled) so by that logic that part of segment of market is also open right?

arslan i expect you'd be getting the new megane

https://www.renault.co.uk/vehicles/new-vehicles/megane.html

or the new clio

https://www.renault.co.uk/vehicles/new-vehicles/new-clio.html

I'm going to print this and frame it in my office. LOVE IT!!!

your office wall space must be really empty if your gonna put that post up on there.

 

[Taygibay]

or the new clio

Or the upcoming Alpine for Pakistani mountains.

​

Tay.

 

[boxer_B]

Watch the video again ...
Going by your flawed logic a shitty mehran is better than a 1.8 corrola

I don't know whats wrong with Corolla 1.8 but it should easily reach 180+ Kmph. Even my friends 3 cylinder normal VW polo petrol reaches 140 Kmph. You have to calculate power to weight ratio, xuv 500 at min is 300 kgs heavier than C class.

 

[tarrar]

All assembly plants should be made in CPEC's industrial areas.

 

[Mutakalim]

I guess they will start with some local workshop franchises. Gradually, things will improve. The local mechanics are already not a top priority when it comes to new models. I mean, we normally see people taking their Civics and Cities to the Honda workshops and Altis and corollas to the Toyota shops. Renault or any new player might do the same.

These corolla shops sell plastic rubber pads of wipers in 8K PKR and advised you to change the whole engine after discovering a minor heating problem.

Or the upcoming Alpine for Pakistani mountains.

View attachment 349209
​

Tay.

The main issue with these cars is low ground clearance. They can't go beyond Nowshehra or Balakot.

 

[Rashid Mahmood]

News from May 2016:

Pakistan woos VW, Renault, FCA to put pressure on Toyota, Honda
Drazen Jorgic
Automotive News Europe | May 6, 2016 11:13 CET
ISLAMABAD -- Pakistan is wooing foreign carmakers such as Volkswagen Group, Renault-Nissan and Fiat Chrysler Automobiles with generous import duties as it seeks to boost auto investment in the country.

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.

But convincing other foreign carmakers to set up factories will be an uphill challenge given fears about the country's long-term political stability and security.

To do that, analysts say, the government must convince manufacturers that the country has turned a corner after a decade of economic turbulence and a series of major attacks by Islamist militant groups including the Taliban.

With the economy growing at its fastest pace in eight years, the local currency stable against the dollar and interest rates at their lowest in 42 years, Pakistani officials believe the country is once again on the radar of investors seeking to tap into a market of nearly 200 million people.

Officials are touting a new auto policy, skewed in favor of new entrants, that includes offering foreign car manufacturers lower duties as an incentive to set up plants in Pakistan or revive shuttered ones.

"We expect that there will be one or two foreign investors coming into Pakistan," said Miftah Ismail, chairman of Pakistan's Board of Investment, who has been talking to carmakers about setting up assembly plants for the local market.

Ismail told Reuters he had held talks with Nissan and Renault for "some time," and last month met Fiat Chrysler executives in Italy for the first time.

Previous discussions also involved Volkswagen.

"I hope some people will bite," Ismail said.

A source close to Renault said Pakistan was under consideration for new production investment, along with other potential locations, but added that discussions were at a very early stage. In an emailed statement, the company said it had "no news to announce at this time."

Nissan chief spokesman Jonathan Adashek said: "Pakistan is certainly a market of interest for us at present," but added no final decision had been made.

Stability

Analysts say the odds are stacked against Pakistan finalizing deals, despite the concessions on offer.

A major obstacle is the perennial concern about political stability in a country where the military has staged several coups since independence and attempted others.

The threat of militant attacks also remains high, despite the armed forces' long-running campaign against groups including the Taliban who are opposed to the government in Islamabad.

Foreign companies have been reluctant to invest large sums when the long-term outlook is so uncertain.

"There is potential in Pakistan. There is no doubt about that," said Puneet Gupta, associate director at consultant IHS Automotive. "[But] we really don't feel Pakistan is in a relatively stable condition, from a mid to long-term perspective."

Another potential turn off for investors is the size of Pakistan's car market, where 180,000 cars were sold in the 2014/2015 fiscal year. That compares with more than 2 million passenger vehicles a year in neighboring India.

"The Pakistan market is not big enough," said Mumshad Ali, chairman of the Pakistan Association of Automotive Parts.

He added that the government's new policies were probably not bold enough to tempt new manufacturers, nor did they address ways to increase demand, such as lowering sales taxes.

The local manufacturing partners of Suzuki, Toyota and Honda did not respond to requests for comment.

But Ali said they felt aggrieved that the government was favoring new investors and believed they should be similarly encouraged to build new plants and expand existing factories.

Ismail said new entrants would be able to import machinery for plants duty free. Customs duty for importing car parts has been set at 10 percent, while existing players will have to pay 30 percent.

"We want greater competition, and we expect with greater competition consumers will be offered better choices," he said.

Some Pakistanis are frustrated by high prices and the quality of locally produced cars, which tend not to have airbags, anti-lock braking systems (ABS) and other features considered standard elsewhere.

The cheapest Pakistani car, the Suzuki Mehran, sells for 650,000 Pakistani rupee ($6,200), or about double the price of a comparable model in India.

"Local cars are so bad," said Ali Paracha, owner of a car rental company. "The market has been in need of an overhaul for at least a decade or two."

 

[Neutral_One]

Pakistan now concentrating on improving their FDI, It is a welcome move. Pakistan should create an ecosystem for developing automobiles end to end, which will attract more foreign investors to Pakistan and in turn it will provide jobs quite a lot of people.