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.