Following years of speculation, Volkswagen has finally announced their entry into the Pakistani market.
The German automaker Volkswagen has signed a final legal agreement with their local partner Pakistan Premier Motors Ltd (PML). As part of the agreement Premier Motors will be setting up a production plant to assemble CKD units in Karachi under license from Volkswagen.
Volkswagen is one of the world’s largest automobile companies and this is a huge breakthrough for the Pakistani auto industry.
PML and Volkswagen had signed a letter of intent (LOI) back in June 2017. There had been hype in the sector about German automaker’s arrival as the market is currently saturated with Japanese automakers Toyota, Honda and Suzuki. The development means that the German company has finally decided to invest in Pakistan.
Volkswagen is expected to add competition to Pakistan’s autoindustry where the Japanese carmakers currently enjoy an oligopoly of sorts. For years, the Pakistani consumer has been forced into buying an inferior quality product at exorbitant prices.
The Pakistani car buyer will now have more choice in the form of quality German-engineered cars in what is positive news for the market.