Al-Futtaim to assemble and sell Renault cars in Pakistan
Al-Futtaim may be best known in the UAE as a Toyota dealer, so this news was a bit of a surprise — Groupe Renault and Al-Futtaim announced that they have signed definitive agreements for the exclusive assembly and distribution of Renault vehicles in Pakistan.
“Groupe Renault is delighted to extend its international footprint by entering Pakistan, a fast-growing market with a 10% annual growth rate,” said Fabrice Cambolive, Senior Vice President, Chairman of the Africa Middle-East India Region of the Groupe Renault.
The agreements will see Groupe Renault bring its latest products, whilst Al-Futtaim, through its new subsidiary Al-Futtaim Automotive Pakistan (Private) Limited, will establish a new manufacturing and assembly plant, and exclusively distribute Renault cars.
Al-Futtaim has numerous businesses across 29 countries. Al-Futtaim global automotive operations extend to 11 markets across the Middle East, Africa and South Asia.
The finalisation of the transaction remains subject to a number of conditions, mainly relating to relevant regulatory approvals from Pakistani authorities.
The parties expect that the plant will be built starting the first quarter of 2018 in Karachi as per Renault standards, and car sales are planned to start in 2019, ramping up in 2020. What models will be offered is unclear, but will likely include the Duster and the Symbol.