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Volkswagen to Set Up a Construction Plant in Balochistan

A new addition to Pakistan’s automobile industry

German auto manufacturer Volkswagen has decided to set up an auto manufacturing and assembly plant in Balochistan. Construction was to begin in 2020 but was delayed due to the Covid 19 pandemic and the lockdowns that ensued. According to the sources provided, the land has been acquired for the construction of the plant, which is to begin in the next few days. This plant will span over 900,000 square feet and will take approximately 2 years to complete with an estimated investment of $135 million. The assembly plant will initially have the capacity to produce 28,000 cars on an annual basis. 

Volkswagen will operate in Pakistan in partnership with Premier Motors, a subsidiary of Premier Systems, which is the only distributor of Audi cars in Pakistan for more than 10 years now. This is the aftermath of the ‘category-A Greenfield Investment status’ being awarded to this Karachi-based company under the Automotive Developmental Policy(ADP) 2016-2021, in its agreement with Volkswagen. 

Volkswagen is the parent company for Volkswagen, Audi, Bentley, Bugatti, Lamborgini, Porsche, SEAT, SKODA, Ducati, MAN, and SCANIA. PakWheels reported that the automobile manufacturer will produce its famous Amarok Truck and Transporter Van in Pakistan. The Amarok Truck competes with Toyota’s Hilux and Isuzu D-max while the Transporter Van with Hyundai Grand Starex and KIA Carnival in the local market.

Volkswagen is one of the most prolific automakers in the world with an amazing line of cars that are considered desirable by every market. Moreover, this new development will provide Pakistanis with much-needed diversity in the automobile industry and stimulate competition among other automobile industries in Pakistan. Similarly, the construction of this plant will create more jobs and benefit the local population in the area. After the quality checking of the firms, The Engineering Development Board(EDB) will issue the manufacturing certificates and a list of importable components which will allow the investor to make good quality cars. There is no information as to when or if the automaker will compete in the passenger car segment of Pakistan but the beginning of this advantageous development will prove fruitful for our country.

Written by: Imaaz Nadeem

Reported by: Ehtisham Majeed

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