Business

KARACHI – The French automaker Renault, which was planning to invest $100 million in auto sector of Pakistan through a joint venture with Ghandhara Nissan Limited (GHNL), has withdrawn its decision.

The Renault-Nissar Alliance has started talks with the GHNL regarding assembling the cars in Pakistan.

However, Renault announced to take back its decision due to commercial reasons, while the Nissan vowed to remain engaged with the company.

Earlier, Renault was considering setting up a plant in Karachi to produce fuel-efficient and roomy vehicles. It was expected that project would attract foreign investment and create job opportunities for Pakistanis.

The GHNL on Friday confirmed that proposed joint venture with Renault was called off. “As far as talks with Renault are concerned, please be informed that GHNL, in collaboration with a potential partner, was in talks with the alliance (Renault plus Nissan). However, owing to commercial reasons, GHNL’s arrangements with the potential partner could not materialise,” said GHNL Company Secretary Sheharyar Aslam.

Aslam added that the talks will continue with Nisan despite the withdrawal of Renault.

Renault, however, said that Pakistan is on alliance project and that they wanted to carry on it with only one partner for Renault and Nissan models in Pakistan.

The automaker companies had aimed at executing the project with the collaboration of Al-Futtaim of UAE. They had decided to assemble vehicles at GHNBL’s existing assembly plant located at Port Qasim.

The rumours regarding the suspension of talks had stemmed in the local market for many days. The Securities and Exchange Commission of Pakistan (SECP) had also asked the GHNL to submit clarification for the considerable instability in the price of its scripts.

GHNL, having the sale licensee for the distribution of Nissan vehicles in CBU (completely build units) condition in Pakistan, is the only automobile company in the country assembling a complete range of products i.e. passengers cars, light commercial vehicles and heavy-duty trucks and buses.