Volkswagen to Invest $135mln in auto plant in Pakistan – Research Snipers

Volkswagen to Invest $135mln in auto plant in Pakistan

Volkswagen, the leading German automaker is planning to make $135 million in Pakistan to set up the auto plant. The aim is to manufacture and assemble Volkswagen vehicles in the country by collaborating with the local partner.

The ministry of industries and production official revealed that the ‘category-A Greenfield investment status’ was granted to a Karachi-based Premier Motor Limited for manufacturing and assembling Volkswagen vehicles under its contract agreement with the automaker.

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The auto plant will be set up in Balochistan and for this purpose land has been acquired already. As the Greenfield status has been granted, the company would begin the construction of the site.  By 2021 the plant would become operational. Initially it would manufacture vans and double cabin vehicles.

It was confirmed by the Engineering Development Board (EDB) Deputy General Manager Asim Ayaz that the Greenfield status was granted to the Premier group by the ministry of industries and production. It is the only distributor of Audi car in Pakistan.

According to Ayaz, there are many known companies including Kia, Hyundai, Renault, Changan that are planning to invest in the auto sector. It is expected that Kia and Changan will launch their vehicles by July 2019. Due to the intro of new auto policy, it has become easier for different local and foreign automakers to invest in Pakistan and locally produce vehicles.

13 companies have been given the Greenfield status and two have been given the Brownfield status. Auto companies from France, Germany, Korea, Japan, China and UAE are investing in Pakistan.