After a massive influx of Chinese carmakers and a huge rise in the demand for crossover SUVs, it appears that European carmakers have also set their eyes on the Pakistani car market.
Following the entry of the French automotive giant, PSA Groupe into Pakistan, the Volkswagen Group has now penned an agreement with Premier Motors Limited to begin assembling its passenger cars and SUVs in the country.
Premier Motors Limited announced in an official statement that it will set up an assembly plant for the vehicles in Hub, Balochistan, where the Volkswagen and Skoda vehicles will be assembled for the Pakistani car market.
The company broke ground for the establishment of the local assembly plant in July, and will have an annual production capacity of 30,000 vehicles per annum. It has also brought AKD Securities onboard as a third-party financial adviser that will ensure the close of the local assembly plant project, for which, the consortium has earmarked $100 million.
About three months ago, it was revealed that a delegation of Skoda Motors had met with the Pakistani ambassador in Prague and had expressed an interest in entering the Pakistani market.
The ambassador had apprised the company representatives of the recent developments in the Pakistani car market. The representatives had acknowledged the progress made in recent years and had shown willingness to be a part of Pakistan’s quickly growing market.