Tuesday, June 25, 2024

Volkswagen to Start Producing Vehicles in Pakistan in 2022

Volkswagen (VW) is expected to start producing its cars in Pakistan in 2022. With Toyota coming in a close second, VW is the world’s largest automaker, having produced and sold the most cars in the world.

As a subsidiary, VW Group has some of the most prominent car manufacturers, including Bentley, Porsche, Audi, Lamborghini, Bugatti, SEAT, and Skoda.

Initially, the automaker will manufacture in Pakistan the Amarok Pickup Truck and the Transporter Van. The Toyota Hilux and the Isuzu D-Max will contend with the Amarok, while the Transporter Van will go up against the likes of Kia Grand Carnival and Hyundai Grand Starex.

Under the Automotive Development Policy (ADP) 2016-21, the automaker has acquired the greenfield status and will begin production of the vehicles under that policy. The assembly plant would have the capacity to pump out 28,000 vehicles on an annual basis, but the study states that, due to COVID-19, the establishment of the plant was delayed by 8 months.

In collaboration with Premier Motors, a subsidiary of Premier Systems, which has been selling Audi passenger vehicles in Pakistan for over a decade, Volkswagen is reportedly coming to Pakistan. Reports report that between 700 and 800 vehicles are sold every year by Premier Motors.

There is no news as to when and if the automaker will be competing in Pakistan’s passenger car market. It should be noted, however that the prices of Volkswagen vehicles, even in the developed automotive markets, are considered to be more on the expensive side.

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