Volkswagen To Start Production In Pakistan By 2022

Volkswagen is a renowned name in the automotive world. This German automaker was the largest manufacturer in terms of sales in 2016 and 2017.

However, in a recent development, it has come to light that Volkswagen has plans to start the production of its vehicles in Pakistan in 2022. This is a huge beginning since big names like Bentley, Porsche, Audi, Lamborghini, Bugatti, SEAT, and Skoda are the subsidiaries of the Volkswagen group.

Initial plans

The initial vehicles that Volkswagen will be producing in Pakistan are Amarok Pickup Truck and the Transporter Van. This means that now, Toyota Hilux will have a competitor in Amarok and Isuzu D-Max will go up against Kia Grand Carnival and Hyundai Grand Starex.

Under the Automotive Development Policy (ADP) 2016-2021, this German automaker has acquired the greenfield status. The production of vehicles will start under this policy. The assembly plant is going to have a capacity of churning out 28,000 vehicles annually. Unfortunately, the setting up of this plant has been delayed by 8-months due to COVID-19.

Partnership

Volkswagen has joined hands with Premier Motors which is a subsidiary of Premier Systems. The latter has been selling Audi passenger vehicles in Pakistan for more than 10 years. Premier Motors is expected to sell somewhere between 700 to 800 vehicles annually.

However, as mentioned above, for now, Volkswagen will be producing the pickup truck. There is no news as to when they will start the production of passenger vehicles.

Costs

Generally, Volkswagen vehicles are more on the expensive side of the cost scale. So, this can be a downside for the sales of these vehicles, because the vehicles that are produced by a few other auto manufacturers cost less.

Let’s see when Volkswagen starts production of its prestigious vehicles on our homeland.

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