The Automotive Development Policy (ADP) 2016-21 has helped a great deal in creating a fair degree of competition in the local market, with several big names expressing interest to start doing business in Pakistan. It was revealed last year that one of such names is Volkswagen.
In a significant development shared by Pakwheels.com, the construction of the Volkswagen assembly plant is set to begin on the 10th of May, 2021, in Hub, Balochistan. The construction contract has been awarded to Ittefaq Building Solution Ltd.
As per the report, one of the officials from the construction company stated that this is a sizeable project, with an estimated investment of around Rs. 4-5 billion. The official added that the plant shall span over 900,000 square feet, and shall take approximately two years to complete.
Volkswagen shall be operating in Pakistan in partnership with Premier Motors, a subsidiary of Premier Systems, which has been selling Audi passenger vehicles in Pakistan for over a decade. The automaker has acquired the greenfield status under the Automotive Development Policy (ADP) 2016-21 and will begin producing vehicles under that policy.
The assembly plant will have the capacity of producing 28,000 vehicles on a yearly basis. Originally, the plant construction was supposed to begin earlier last year, but that got delayed by 8 months due to the outbreak of COVID-19.
It has been reported that Volkswagen will produce the Amarok Pickup Truck and the Transporter Van in Pakistan. The Amarok will compete with the Toyota Hilux, Isuzu D-Max, and possibly the MG Extender, whereas the Transporter Van will go up against the likes of Kia Grand Carnival and Hyundai Grand Starex.
Volkswagen is one of the most prolific automakers in the world at the moment with a fantastic lineup of cars that is deemed desirable by every market. With that said, Volkswagen’s arrival in Pakistan is definitely a piece of promising news.