Volkswagen to produce vehicles in Pakistan from 2022

German car maker Volkswagen (VW) has announced that it will start producing vehicles in Pakistan from 2022 as the company has acquired Greenfield status under the Automotive Development Policy (ADP) 2016-21.

Volkswagen is one of the largest automakers in the world with several subsidiaries under its belt, including Bentley, Porsche, Audi, Lamborghini, Bugatti, SEAT and Skoda.

VG is coming to Pakistan under a collaboration with Premier Motors Limited after the two companies signed an agreement in 2018 for manufacturing commercial vehicles.

The company will invest $135 million in the country and set up an assembly plant in Pakistan which will initially produce two vehicles, the Volkswagen Amarok Truck and the Transporter Van in Pakistan.

The Amaraok Truck will be competing with the already popular Toyota Hilux and the Isuzu D-Max while the Transporter Van will go up against the KIA Carnival or possibly the Hyundai Grand Starex if the vehicle is introduced in Pakistan by that time.

There is currently no information on whether the company plans to introduce vehicles in the passenger car segment but 2022 is a long way and the company will obviously reveal more information in the coming months.

Pakistan is getting an influx of car manufacturers thanks to the ADP 2016-21 which is finally helping to break the monopoly of the BIG3 (Honda, Toyota and Suzuki) with companies like KIA, Hyundai, MG now available in the country.

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