French Automaker Renault is all set to build a manufacturing plant in Faisalabad, the company faced a major setback in Karachi which was reported in March. The French Automaker was having difficulties in establishing a plant in Karachi when Pakistan Steel Mills (PSM) refused to provide land to the automaker in Karachi’s Bin Qasim Industrial Park.
Renault announced its decision to enter Pakistan’s auto market in November last year. Renault will establish the manufacturing plant in Pakistan in collaboration with Dubai’s Al-Futtaim group.
Renault Chief said that the company will acquire 54 acres of land in Faisalabad in the next few days where the assembling plant will be established with a planned investment of $140 million. The land in cheaper in Faisalabad as compared to Karachi and the amenities are available for industrialists—he added.
Renault signed an agreement with A-Futtaim group to establish the auto business in Pakistan last year November. As reported the company will launch SUV Duster, however, the product line is not confirmed yet.
Besides Renault, Hyundai with local Nishat Group announced to build a manufacturing plant in Faisalabad last year. If both companies start their operations in the near future the auto market in Pakistan would see more competition and saturation as well as product variation for consumers.