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Will Volkswagen give competition to Toyota in Pakistan?

It's set to start production in 2022

SAMAA | - Posted: Dec 4, 2020 | Last Updated: 3 months ago
Posted: Dec 4, 2020 | Last Updated: 3 months ago
Will Volkswagen give competition to Toyota in Pakistan?

Volkswagen will start manufacturing vehicles in Pakistan in 2022. It is the biggest car maker in the world with regard to total number of cars produced in a year ahead of Japanese giant Toyota.

The German car maker has several renowned brands under its wing including Lamborghini, Porsche, Audi and Bugatti.

The company will initially be producing pickup Amarok, which comes with single and double cabins like Toyota Hilux Revo and a Transporter van similar to Suzuki APV, according to a representative of Volkswagen Premier Motors.

Volkswagen had a delay of eight months in the establishment of its plant at Hub due to the coronavirus pandemic.

A source said the company has finalized Amarok and Transporter for now but passenger cars are also on the cards.

Volkswagen will assemble automobiles in Pakistan under green-field status, which it received following the government’s Auto Development Policy (ADP 2016-21). The company has a capacity of 28,000 vehicles per annum.

Related article: Guide to buying used cars in Pakistan, tips and advice

Premier Motors was established two years ago and is a subsidiary of Premier Systems, which has been selling Audi cars for the last 15 years, according to the company source. It sells around 700 to 800 vehicles annually.       

The government launched the policy to attract foreign investment and help increase competition in the auto sector, which had been dominated by three Japanese car makers – Honda, Toyota and Suzuki – for a long time. But competition has now been increasing as nearly a dozen new manufacturers have entered Pakistan’s auto fray after the ADP.

The ADP 2016-21 policy ends in June 2021 and the models introduced by new companies will be considered for duty relaxations.

All new entrants have been trying to launch as many models as they can before the policy ends. A government official said that Volkswagen’s plans to make its plant functional within the stipulated period were disturbed due to the pandemic and they have requested the government to extend the timeline for them to avail the incentives under the policy. The relevant government authorities were looking into it.

In the aftermath of the ADP, Kia, which has already been selling Sportage, Picanto and Carnival, has plans to launch three to four new cars that may include Cerato, Sorento and Niro.

Related article: Kia may launch three more cars: Cerato, Sorento and Niro

Hyundai has successfully launched Tucson while MG Motors have revealed its plans to launch MG HS SUV and claims it has already got orders for 10,000 units. Master Motors Changan, which has already launched a minivan Karvaan, is expected to soon launch Pakistan’s cheapest sedan Alsvin.

Related article: MG Motors receives 10,000 orders for its Rs5.5 million SUV

Bike-maker United Motors has launched Bravo hatchback and is now planning to launch another hatchback, Chery QQ, while Regal Motors have also introduced a hatchback, Prince Pearl.

Related article: Why are cars more expensive in Pakistan than India?

Apart from passenger car makers, some commercial vehicle makers such as JW Forland have also entered the Pakistani market.

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