Volkswagen, the largest automobile German company, will start producing cars in Pakistan in 2022. The company is expected to initially produce two vehicles in the country. In 2018, Volkswagen AG and Premier Motors Ltd signed an agreement for manufacturing commercial vehicles in Hanover, Germany.
The German company will manufacture its Amarok Truck and Transporter Van in Pakistan. Volkswagen is the world’s largest automaker and has produced and sold the most cars in the world.
The assembly plant of Volkswagen will have the capacity of producing 28,000 cars in Pakistan every year. The company was set to start production in 2021.
However, the novel coronavirus pandemic situation has delayed the establishment of the plant.
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The German automaker will manufacture the Amarok Pickup truck and the Transporter Van in Pakistan. Volkswagen is being launched in Pakistan in partnership with Premier Motors, a subsidiary of Premier Systems, which has been selling Audi vehicles in Pakistan for over ten years.
In 2018, Volkswagen AG and Premier Motors Ltd signed a legal agreement for manufacturing commercial vehicles in Hanover, Germany.
Volkswagen will be investing $135 million to set up a plant for manufacturing and assembling vehicles in Pakistan.
The plant would be set up in the province of Balochistan. The land for the industrial setup has already been acquired.
As per the available details, Volkswagen has not released any information on when it plans to release passenger vehicles in Pakistan.
Auto Development Policy (ADP) 2016-21 has proved to be fruitful for the auto manufacturing industry in Pakistan and a number of global automakers have listed Pakistan in the future manufacturing-unit-setup plan.
The announcement of Volkswagen coming into Pakistan the year after next is welcomed by car enthusiasts across the country.
They believe that more global car manufacturers landing in Pakistan would help break the monopoly of BIG3 including Honda, Suzuki, and Toyota.