The world-renowned French car manufacturer Renault is all set launch its operations in Pakistan. As per an official statement by Board of Investment (BOI) Pakistan, the company has decided to establish assembling unit in the country.

Here is the tweet by Chairman BOI confirming the story,

The French automaker Renault decides to invest in Pakistan. Showing it's confidence in the new Auto policy and govt's economic management. 1

— Miftah Ismail (@MiftahIsmail) November 3, 2016

This is the first result of revised Auto policy. The new policy allows manufacturers to import all manufacturing units including plants, equipment for free. As per further details, the policy also enables the import of car parts at very nominal rates. These lucrative incentives has encouraged Renault to make entrance in the country.

As per initial information, the plant will be established in Karachi. The company will start with releasing 21,000 cars in the first year after establishing the plant. Afterwards, the number will be increased to 44,000 yearly. Renault will be launching cars for both high class and middle class. Its 1500cc car will cost less than the same power Japanese car.

Other than Renault, some other car manufacturers have also shown interest in Pakistani market. Dewan Motors is planning to restart its operations in Pakistan. Chinese car companies are also in talks with the government.

This increased competition will certainly reduce the prices of cars in Pakistan. Moreover, it will also produce thousands of new jobs in the market. One thing is for sure; we definitely have got a good competition in car market ahead.