Are you tired of old fashioned car brands and looking forsomething new? Yes right? Then let us surprise you with good news about thelaunch of Volkswagen in Pakistan.
German automotive giant Volkswagen has decided to influxinvestment in Pakistan. According to the management member Dr. Joseph Baumert,Volkswagen Commercial Vehicles has collaborated with Premier Systems toestablish a manufacturing plant in Karachi. A meeting is conducted with the PremierCompany who assured him that German government will assist the company ingetting all the required facilities and assistance.
Pakistani Prime Minister Shahid Khaqan Abbasi alsoenlightened the director about the significant infrastructure developed inPakistan under CPEC- China Pakistan Economic Corridor. He also emphasized thatPakistan is a land of opportunities and investment in the auto sector woulddefinitely be fruitful as government offers lots of incentives to new entrants.It was also reported back in February that the company might set up amanufacturing plant for its Amarokand T6 vehicles in the country.
Audi Plants Will Be Used for Volkswagen
Audi AG, is owned by Volkswagen is all set to use the sameKorangi Industrial Area plant that was launched last year for Audi’sassembling. Two models Amarok and T6 are the two transporter vehicles that areconsidered to enter initially, later passenger car range will also make anentry in future.
Pakistani counterpart, PremierSystems will manage arrangements in Pakistan. As a result, both auto giantscould smoothly enter the new market.
Test drives of both vehicles will beconducted on Pakistani roads, as a standard practice before any new launch. Thistest drive will be conducted by German drivers who will give feedback and willmake suggested changes accordingly.
With the availability of high qualitydiesel in Pakistan, Volkswagen made the decision to enter in the market thisyear. Heavy vehicles cannot run on any other type of fuel than diesel.Pakistani refineries have decided to produce diesel which is now a necessityfor meeting emission standards for heavy engines. This would be a great step toreduce the quantity of imported fuel and heading towards self production.
Foreign Direct Investment Increases
Straggler export growth, rising tradeand current account deficits and depreciating currency have been just a fewissues faced by Pakistani economy. Under such circumstances, an arrival offoreign direct investment is indeed an encouraging step for the economy.According to the economic analysts, foreign investments will surely reduce thecurrent economic hurdles and boost growth. The establishment of Audimanufacturing plant brought an investment of $30 million in Pakistan.Definitely, the numbers could go higher if Volkswagen decides to set up its ownplant.
Auto Sector will Get a Boost
Apart from the two auto giantsventuring into Pakistan, there are reports of many local companies to joinhands with auto manufacturers. Nishat Textile Mills has entered in an agreementwith Hyundai to assemble cars in Pakistan. Furthermore, a renowned player inthe cement industry, Lucky Cement has sealed a deal with Kia Motors. Gandharahas also found its auto mate ‘Renault’ for using its plant for assembling carslocally.
Apparently, the competition in theauto market has risen tremendously. Lets’ see how Volkswagen is received inPakistani market!