KARACHI: French automaker Renault has now decided to establish its car manufacturing plant in Faisalabad after facing long delays in land acquisition in Karachi’s Bin Qasim Industrial Park.

 Chief  of Groupe Renault said  that the company will get 54 acres of land in Faisalabad in a few days where a car assembling plant with a planned investment of US $140 million will be established.

He added that the land is cheaper here with all the facilities readily available for the industrialists.

Bin Qasim Industrial Park is located on Main National Highway under National Industrial Parks Development Management Company (NIP). The NIP was established as a special initiative of the Ministry of Production.

Groupe Renault and Al-Futtaim last November announced that they had signed definitive agreements for the exclusive assembly and distribution of Renault vehicles in Pakistan.

According to the deal, Groupe Renault would bring its latest products and technological know-how, whilst Al-Futtaim, through its new subsidiary called Al-Futtaim Automotive Pakistan (Private) Limited, will establish a new manufacturing and assembly plant, and exclusively distribute Renault cars through its extensive knowledge of the market.

As per the initial agreement, the parties expected that the plant will be built starting the first quarter of 2018 in Karachi as per Groupe Renault standards and car sales are planned to start in 2019 ramping up in 2020.