Premier Systems Private Limited, the importer of Audi in Pakistan, is already in talks with Volkswagen Commercial Vehicles to start manufacturing Volkswagen in Pakistan. The company is set to launch two of its vehicles, for now, Amarok and T6 models.
Many were expecting Volkswagen to be competing in the cars category. However, Amarok will compete with the Toyota’s Revo and T6 is a multi-seat passenger van. Automotive experts believe that company’s interest in these segments is due to the CPEC where these vehicles are expected to be in high demand.
The company is coming to the Pakistan’s automotive market with high aims. Premier Systems Private Limited is expecting to develop 40 vehicle dealerships across Pakistan.
The Plant for Manufacturing Volkswagen
Volkswagen is planning to manufacture vehicles using the plant which Audi will develop in Korangi, Karachi. The plant will not only manufacture Audi cars but these two commercial vehicles from Volkswagen as well.
German car manufacturers are very particular about the products they launch. Volks-wagen will also test trials for these two vehicles to see how they perform in different Pakistani terrains and weather conditions. The data collected for the performance of these two vehicles will be sent back to Germany to make any changes if required.
Why Entry of Volkswagen is Good for Pakistan?
The automotive consumers in Pakistan have long blamed three car manufacturers for having a monopolistic control over the Pakistani auto industry. They believe that due to their monopoly consumers have been deprived of high-quality cars. Pakistani’s automotive market needs new entrants to its stagnant auto industry to deliver fresh products to the customers and help increase the overall standards.
There are many other car manufacturers rumored to be interested in coming to Pakistan. Nishat Mills has reportedly announced a joint venture with Hyundai to start making cars in Pakistan. Similarly, Lucky Cement is planning to launch cars in partnership with Kia Motors. Lastly, Ghandhra is establishing its car manufacturing plant to assemble Renault cars in Pakistan.
All these are good signs for the Pakistani automotive industry. The increased competition between automakers will not only help improve product quality but would also assist in reducing prices of overpriced vehicles.