Renault Sets Up Operations in Pakistan
- The Pakistani market is experiencing the evolution of emerging markets in general, that is to say, in zigzags (a succession of positive and negative years). However, if one observes its evolution over a decade, we can see that the Pakistani market has gone from a level of about 150,000 units to a level around 200,000 units. Thus, in 2016, this market recorded 211,000 sales (vs. 229,000 in 2015).
- The Pakistani market is supplied almost exclusively by local production (215,000 units in 2016, compared to 230,000 in 2015). Three Japanese manufacturers account for 98% of production and sales: Suzuki, Toyota and Honda. The models produced are mainly segment A and B, as in India.
- Renault announced this month that it was going to set up operations in Pakistan, judging that this country, with its large population (200 million inhabitants) and a very low car ownership rate (around 16 units per 1,000 inhabitants) has very strong potential (Renault expects 10% per year market growth ).
- The vehicle assembly will take place in a brand new factory located in Karachi, through an association with Dubai-based Al-Futtaim. Sales of cars under the Renault brand will begin in 2019. Given Pakistan’s current market, the models produced could well be the (A segment) Kwid which is successful in India.
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