Islamabad: French car manufacturing juggernaut, Renault, will launch five of its variants in Pakistan.
According to the media on Monday, the French carmaker has already acquired 54 acres of land in the city of Faisalabad in Punjab province.
The company purchased the land in the Faisalabad Industrial Estate Development and Management Company (FIEDMC) and is expected to invest $140 million more in the venture, Xinhua news agency reported.
Renault, which is one of the top international car manufacturing companies, has partnered with the largest UAE-based entity Al-Futtaim Group.
The joint venture is set to bring the latest technology to their manufacturing plant in Pakistan. The company will initially launch five variants to make a strong start in the Pakistani auto sector.
The Al-Futtaim Group has already started establishing its offices in Pakistan. The two companies will join hands to establish their showrooms and other offices in the country by 2019 whereas the French auto giant's variants are likely to get an official launch by June 2020.
The company's auto manufacturing plant in Faisalabad will have the production capacity of 50,000 vehicles per year. It will conduct sales through the local dealerships.
The arrival of five new variants by the top automaker will provide Pakistani buyers with additional options to choose from.
The advent of Renault in Pakistan is likely to hurt the market monopoly of Japanese automakers like Toyota, Suzuki, and Honda. It would also inspire the other automakers in the Pakistani auto market to bring more investment in Pakistan.