Al-Futtaim Group Looks to Invest $230 Million in Renault Pakistan
Al-Futtaim-Renault cars are set to hit the roads in the year 2020 and with an investment of $230 million, it looks like the automobile manufacturer will not settle for anything else. In fact, Renault has already gotten hold of Faisalabad Industrial Estate Development and Management Company (FIEDMC) – one of Pakistan’s biggest industrial zones.
With about 12 car makers investing a total of $746 million so far, the Auto Development Policy (ADP) 2016-21 has come out to be quite profitable for Pakistan. Two companies have already gotten the Brown Field investment status – this is where a company buys or rents an existing industry or facility for making a new product. Meanwhile, around ten companies have been honored with Green Field investment status. This will allow the concerned companies to begin their operations in local markets from the ground up.
This investment is a good opportunity for the Pakistani automobile market – which was previously dominated for decades by Japanese car manufacturers: Honda, Toyota, and Suzuki. Moreover, the new auto policy has also attracted many key foreign players in the auto category.
Pakistan’s automobile market is being invested in at a time when the country is in dire need to direct foreign investment – considering the economy is in crippling state and falling its forex reserves.
Ever since the ADP was announced, Pakistani market has gotten new players into the auto area and have shown great interest in the potential of the country’s market. These investors have made the following investments:
- Regal Automobile Industries with DFSK Motor – $10.71 million
- United Motors (Pvt) Limited with Yangste Motor Group and Luoyang Dahe New Energy Vehicle – $19.05 million
- Khalid Mushtaq Motors (Pvt) Ltd with Changan Kuayua Automobiles – $3.50 million
- Kia Motors with Kia Lucky Motors Pakistan Ltd – $190 million
- Hyundai Motors with Hyundai Nishat Motors (Pvt) Limited – $163million
- Changsha Foton Vehicle Technology with Foton JW Auto Park (Pvt) Ltd – $11.45 million
- BAIC International Development Company with Sazgar Engineering Works Ltd – $31.01 million
- Changan International Cooperation with Chongqing Changan Automobile, Master Motors Ltd and IVECO – $101.52 million
- Chongqing Lifan Automobile with Pak China Motors – $24.25 million
- Mianyang Huarui Automotive, T Dev Group, Chongqing Big S with Topsun Motors and Engineering Services – $5.43
- Ssang, Kia and Kolao Group with Dewan Farooq Motors – $145 million
- Nissan Motor Cooperation Japan with Ghandhara Nissan – $41.3 million
The entry of investors into the auto market is a sign that we might see a number of newly improved, advanced cars which can competing with the existing Japanese auto giants in Pakistan.