In a first, Volkswagen to start manufacturing cars in Pakistan in 2022

It seems we will be seeing Bugattis manufactured in Pakistan sooner than we think. This is because Volkswagen will officially start producing vehicles in Pakistan in 2022. With several renowned brands under its umbrella, including Bugatti, Lamborghini, Porsche, and Audi, the German automotive giant is the largest car manufacturer in the world.

According to a Volkswagen Premier Motors representative, the company will start off by introducing the Amarok, a pickup truck that comprises single and double cabins akin to those featured in the Toyota Hilus Revo.

Yet another initial Volkswagen offering in Pakistan will be the Transporter, which is a van similar to the Suzuki APV.

A source also confirmed that aside from these two vehicles, passenger cars are also expected to make their way in the near future.

Volkswagen was all set to establish its manufacturing plant in Hub, but the initial plans got delayed by eight months because of the coronavirus pandemic.

The German automotive giant will assemble vehicles in Pakistan under green-field status, which it obtained in the wake of the government’s Auto Development Policy (2016-21). The company currently has a capacity of 28,000 vehicles per year.

The government launched the policy to attract foreign investment and help increase competition in the automotive sector, which had been dominated by three Japanese car makers – Honda, Toyota and Suzuki – for a long time. But competition has now been increasing as nearly a dozen new manufacturers have entered Pakistan’s automotive field after the ADP, including big names like Kia.

The ADP 2016-21 policy ends in June 2021 and the models introduced by new companies will be considered for duty relaxations.

Volkswagen is entering the Pakistani market in partnership with Premier Motors, which was established two years ago as a subsidiary of Premier Systems and has been selling Audi cars in Pakistan for the last 15 years.