Volkswagen Signs Agreement to Set Up Assembly Plant in Karachi

Volkswagen has signed a final agreement with Pakistan Premier Motors (PML) for manufacturing and assembly of commercial vehicles in Pakistan.

The agreement between both companies is based on the licensing contract of a completely knocked down (CKD) assembly plant in Karachi.

The world’s largest automobile manufacturer is collaborating with Pakistan’s authorized importer of Audi cars to assemble Transporter T-6, Amarok, Skoda, and Caddy.

Transporter T-6
Amarok
Caddy
Skoda

This venture is going to help a lot in terms of vehicle supply in the country and would prove to be a great contribution to Pakistan’s automotive industry.

Details of VW Projects

As per the details, the VW project is expected to generate a maximum of 500 million euros annually in exports and 200 million euros in duties and taxes for Pakistan.

These figures imply that the German automobile manufacturer is planning to export vehicles from Pakistan to other countries in the region.


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In the first phase, Volkswagen will assemble 28,000 units T-6 light commercial vehicles (LCVs) and Amarok. In the second one, it will assemble Caddy while in the final phase, it will assemble Skoda vehicles.

These projects are expected to generate 5,400 jobs with 1,400 being direct ones.

Pakistan’s Commercial Wing in Berlin has been engaged with the two companies for two years. Its efforts resulted in the signing of a letter of intent on June 22, 2017, in this regard.

End of Japanese Assemblers’ Monopoly

Earlier, French automobile manufacturer, Renault, partnered with Al-Futtaim to enter the Pakistani market. Not only this, but there are going to be new entrants from South Korea and China as well.

Soon, the domination of the three Japanese assemblers will end in Pakistan which have not yet localized car production for several years.

It is pertinent to mention here that the previous government had launched an Automotive Development Policy 2016-2021 in order to break the monopoly of the three Japanese assemblers in Pakistan’s automotive sector.


  • Ali

    We should stop buying Japanese cars as they dont fully manufacture in Pak.

  • Raza

    The Japanese cars sold in Pakistan are substandard

  • Sajjad

    And they are coming to Pakistan because Europe is going to get rid of these polluted junks and switching to electric cars.

    • Jalil Jahanzaib Khan

      hmmm..

    • Abu Zar Chughtai

      You don’t know then diesel is less pollutant than petrol… and coming to your electric…. if you produce electricity 100% through hydro, wind and solar then you can say electric is good… in a country like Pakistan we are getting 80% energy through thermal i.e fossil fuel. So in this way electric is more pollutant than diesel or petrol.

  • Abu Zar Chughtai

    Have you confirm with the sources that transporter T6, amarok, caddy and skoda are in the lists. And skoda is not a car… it’s a brand run by VW group.

    • saad

      lol thats what i was thinking… mtlb copy paste krdo khuch bhe 🤣

      • Afnan

        guys even I thought the same but they have mentioned in the article Skoda Vehicles which means the all Skoda cars are coming I hope so