A final legal agreement has been finalized between Pakistan Premier Motors Limited (PML) and the largest automotive group of the world—Volkswagen (VW), for the making of commercial automobiles.
The deal has been inked for the making of commercial automobiles under the licensing contract of a completely knocked down assembly (CKD) in the provincial capital of Sindh. This deal is a significant mark in the automotive sector of Pakistan.
This project would prove to a great add-on in the automotive industry of Pakistan and would assist to fill the void of vehicle supply in the nation.
VW would be building 4 kinds of vehicles instead of two and that too in three phases.
As per the reports of local media, Volkswagen in collaboration with the Premier Systems Private Limited—the authorized dealer of Audi vehicles in Pakistan, would be assembling Transporter t-6 Skoda and Amarok in Pakistan.
Earlier, in collaboration with Al-Futtaim and new South Korean, French automobile maker entered into the Pakistani market. The Chinese competitors are expected to break the dominion of the 3 Japanese assemblers that have so far remained unsuccessful in localizing car production in the span of last 3 decades.
As per the details shared, VW project at its full potential is expected to produce up to five hundred million euros yearly in exports and two hundred million euros in duties and taxes for Pakistan.
But these figures indicate that the world’s largest automotive group is keen in exporting vehicles to the regional nations from Pakistan.
According to the officials, in the initial phase, VW would be manufacturing 28,000 units of Amarok and T-6 light commercial vehicles (LCVs).
This project is expected to generate five thousand and four hundred jobs including one thousand four hundred direct jobs.
Volkswagen has the target of having at least 40 dealerships in Pakistan. The car maker has got the aim of making use of the same plant that Audi plans to build for assembling its own automobiles in Karachi.