Volkswagen to Start Producing Vehicles in Pakistan in 2022

Volkswagen (VW) is set to begin the production of its vehicles in Pakistan in 2022. VW is the largest automaker in the world, having manufactured and sold the most cars in the world, with Toyota coming in at a close second.

VW Group has some of the most prolific auto-manufacturers as its subsidiaries, including Bentley, Porsche, Audi, Lamborghini, Bugatti, SEAT, and Skoda.

The automaker will initially produce the Amarok Pickup Truck and the Transporter Van in Pakistan. The Amarok will compete with the Toyota Hilux and the Isuzu D-Max, whereas the Transporter Van will go up against the likes of Kia Grand Carnival and Hyundai Grand Starex.

The automaker has acquired the greenfield status under the Automotive Development Policy (ADP) 2016-21 and will begin producing the vehicles under that policy. The assembly plant will have the capacity of churning out 28,000 vehicles on a yearly basis, however, the report states that the setting up of the plant has been delayed by 8 months due to COVID-19.

Volkswagen is reportedly coming to Pakistan in partnership with Premier Motors, a subsidiary of Premier Systems, which has been selling Audi passenger vehicles in Pakistan for over a decade. Reports state that Premier Motors sell between 700 and 800 vehicles every year.

There is no word as to when and if the automaker will compete in the passenger car segment of Pakistan. It should be noted, however, that the prices of Volkswagen’s cars are regarded to be more on the expensive side, even in the established automotive markets.