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Renault Planning to Open New Plant in Pakistan

Pakistan: France based leading car manufacturer, Renault, has planned to open a manufacturing unit in Pakistan by 2018. The country’s passenger car market is majorly led by the dominance of Suzuki, Toyota and Honda with their different car models in varied segments.

The country's Board of Investment said in a statement, "Renault has decided to invest in Pakistan. They will start assembling cars in Pakistan by 2018".

Generally, in South Asian countries, as the demand is excess over supply, people have to wait for new car, even after full payment. Pakistan government allows foreign car makers to import the machinery for their plants, duty free in respect to boost the competition in the local market.

“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,” representative from Renault told.

As per TechSci Research, the decision made by the company is likely to generate an emerging demand for tires in the country’s OEM market, which would eventually, influence the overall tire industry of Pakistan in coming period.

According to a recent report published by TechSci Research, Pakistan Tyre Market Forecast & Opportunities, 2020’’, As a result of increasing vehicle ownership, coupled with the growing road infrastructure in the country, tire market in Pakistan is expected to witness modest growth over the next five years. Tire market in the country is dominated by two-wheeler tire segment, followed by passenger car tire segment. In 2014, these two segments collectively captured a market share of more than 80% in the market, in volume terms. With the government focusing on macroeconomic and infrastructure reforms, it is forecast that the country will witness a boom in the construction, agriculture, and industrial sectors, which is expected to act as a catalyst for growth in the automotive industry as well as the tire industry.

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