Ever since we heard that Renault is coming to the Pakistan’s auto industry, we all have been looking at the possibilities that will come alongside the massive investment from the French automaker but it was all for nothing.
The company has apparently taken back its decision to invest in Pakistan as according to a stock notice on Friday, Renault has suspended its talks with Ghandhara Nissan Ltd (GHNL).
It was previously reported that a Renault-Nissan Alliance and Gandhara Nissan joint venture was cooking up but due to commercial differences, the French automaker has pulled back its forces whereas the rest of the two companies will continue their discussion.
While responding to a letter by the Securities and Exchange Commission of Pakistan (SECP), GHNL confirmed the news. Sheharyar Aslam, GHNL Company Secretary stated, “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 materialize.”
The project was supposed to be executed in collaboration with Al-Futtaim of UAE where all the three companies planned to manufacture cars in GHNL’s existing manufacturing facility.
Previously we saw the hesitation among Renault and Volkswagen about investing in the country but since then, the latter has finally confirmed its plan to enter the Pakistani market but it seems that this is the end for the French company’s plan to manufacture cars here.
The rumors regarding the suspension of the joint venture were circulating for many days due to which SECP asked the company to submit clarification regarding the instability in the price of its scripts.