Al-Futtaim Motors abandoned the plan of opening a new assembly plant in Karachi. However, they opted for Faisalabad for their new assembly plant location.
Al-Futtaim Motors revealed that they acquired an industrial plot in Special Economic Zone (SEZ) Faisalabad for their new assembly plant. They were initially looking to open their assembly plant in Bin Qasim Investment Plant (BQIP) Karachi. However, the consequent delays from the National Investment Park (NIP) officials enforced them to change their decision.
Al-Futtaim Motors is not the only automobile manufacturer that has faced the issue. Hyundai was also looking to open their plant at BQIP Karachi but later opted for SEZ Faisalabad for their plant.
According to the automobile industry experts, SEZ Faisalabad is offering better infrastructure and services than BQIP Karachi. In addition, the land prices are also lower in Faisalabad. The land costs around Rs7m per acre in SEZ Faisalabad. However, it is five times lower than the Rs35m per acre price in BQIP Karachi.
Al-Futtaim Motors will set-up the plant for the assembly of Renault vehicles. However, Ghandhara Nissan Limited (GHNL) is the official importer of Renault commercial vehicles in Pakistan.