Currently Reading: Volkswagen Will Start Manufacturing Cars In Pakistan By 2022
VW group is the undisputed statistically largest car manufacturing group in the world with astounding numerical figures of production units every year. Volkswagen group is responsible for a multitude iconic and niche car brands such as Porsche, Bentley, Lamborghini, Audi and the list goes on. It is closely trailed by Toyota at second largest manufacturing status in the world.
Credits to the Automotive Development Policy (ADP) 2016-21, Volkswagen has made an agreement with Pakistani government according to the which VW will establish its factories in Pakistan and make vehicles for the local car market. Volkswagen will start manufacturing cars in Pakistan by 2022.
Volkswagen (#VW) has announced that it will start production of vehicles in Pakistan by 2022. Volkswagen’s entry into the Pakistani automobile market will give Pakistani consumers much-needed diversity.#Pakistan 🇵🇰 pic.twitter.com/l3ZvUggBpx
— Developing Pakistan (@DevelopmentPk) December 7, 2020
VW Vehicles To Look For In Pakistan
VW in its initial phase will produce two types of vehicles for the local car market in Pakistan. The first car is Volkswagen Amarok which is commonly regarded as one of the extremely robust 4X4 vehicles in the world. The Amarok will pose competition to Toyota Hilux in the local market.
In addition to the Amarok, Volkswagen group will start to churn out VW Transporter in 2022. This is a heavy duty car which is exponentially more feature rich than any other car of its class, especially in Pakistan. It will pose competition to Suzuki Bolan, Grand Carnival from KIA and Hyundai Grand Starex.
Volkswagen group acquired the greenfield status under ADP according to which it will be allowed to produce vehicles. Its assembly plants are estimated to have the capacity of feeding the local market with 28,000 vehicles every year. It is unfortunate however, that the report states that the setting up and commencement of the plant has been delayed by 8 months due to the pandemic.
Pros And Cons
One of the biggest advantages to the local customer will be the fact that the car market will soon become extremely diverse. When markets become diverse, competition increases and companies push each other to their limits in an attempt to make their product as feature rich as possible in the most economical way possible.
It should be kept in mind, however, that Volkswagen is most often regarded to as a premium brand with quite high prices, even in competitive markets.
On one side the inclusion of VW group in Pakistan’s local car manufacturing industry can help in breaking the monopoly established by Toyota and Suzuki for years. On the other hand, if VW follows its tradition to maintain high prices for its products, it can give margin to Toyota and Suzuki to boost their prices as well, just below VW as to have a numerical lead.
What are your thoughts on this? Let us know in the comments.