Renault to Make Cars in Pakistan

Renault SA has partnered with Dubai-based Al-Futtaim Automotive to make and sell cars in Pakistan by 2019, Automotive News Europe reports.

The deal culminates talks that began last year. Renault is the first European carmaker to take advantage of government incentives to help bolster Pakistan’s meager auto industry. The company plans to erect an assembly plant near Karachi. Renault has declined to say which models it will build.

Hyundai and its Kia affiliate previously confirmed they will spend $115 million to set up local production in Pakistan. And Volkswagen tells ANE it is in talks to build light commercial vehicles in Pakistan.

Last year, passenger car sales in Pakistan totaled fewer than 200,000 units. But analysts predict the market will expand 20% in 2018 and average about 14% growth through 2021.