French car manufacturer Renault will be setting up a production plant in Pakistan by 2018.This was stated by the company yesterday.
At present the Pakistan car market in being dominated by Suzuki, Toyota and Honda. But these manufacturers are often accused of colluding to fix prices on lower quality versions of their models.
Pakistan Board of Investment in a statement said, "Renault has decided to invest in Pakistan. They will start assembling cars in Pakistan by 2018."
The Chairman of the Board, Miftah Ismail has been in discussion with several other foreign car manufacturers such as Fiat, Nissan, Peugeot, Renault and Volkswagen.
But in a development in September 2016, Ismail met the Renault leaderships with Pakistan's Finance Minister Ishaq Dar in France and convinced the French automaker to invest in Pakistan.
Confirming the news Renault said that it's an exclusive negotiation to develop the brand in Pakistan including a production facility.
Renault said, "Groupe Renault confirms it has entered into exclusive negotiations with Ghandhara and Al Futtaim Groups to develop the Renault brand in Pakistan, including a manufacturing plant on the Ghandara site in Karachi."
Currently, only fewer car manufacturers are operational in Pakistan. Many international car brands are reluctant to shift their production plant to Pakistan because of political and economic disturbances in the country.
Pakistan government has also announced duty-free import for foreign car manufacturers to import equipment to set up plants in Pakistan. Last year Volkswagen also visited Pakistan but has not announced any plans about entering Pakistan.