No VW & Skoda in Pakistan: Premier Motors Retracts Plans

31 Jul 2023

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No VW & Skoda in Pakistan: Premier Motors Retracts Plans

Reportedly, Premier Motors has decided to abandon its plan to introduce locally assembled Volkswagen and Skoda vehicles in Pakistan. Despite various reports on this matter, the company has not made any official public announcement confirming the decision.

The initiative to locally assemble Volkswagen cars began back in November 2018 when Premier Motors Limited (PML) signed an agreement with German auto manufacturing giant Volkswagen AG for manufacturing and assembling Volkswagen commercial vehicles in Pakistan. PML was granted the Greenfield status under the Auto Policy 2016-21, allowing them to proceed with the assembling and manufacturing as per the agreement with Volkswagen AG.

However, the project encountered numerous challenges, particularly in 2020 due to the pandemic. While other automakers were able to move forward, the VW project progressed at a very slow pace. Initially, it was anticipated that locally assembled VW vehicles would hit the roads in 2021, but the timeline was later postponed to 2023. Moreover, there were indications that Skoda vehicles would also be produced locally in the same facility.

Earlier this year, during a visit to the plant by the Consul General of Germany, Dr. Rüdiger Lotz, it was revealed that the facility would be completed by 2024, with an annual production capacity of 32,000 units. Nevertheless, recent internet speculation from various sources suggests that the launch of locally manufactured Volkswagen and Skoda automobiles in Pakistan is highly unlikely, especially considering the unfavorable economic climate and political uncertainty prevailing in the country.

The decision to shelve the project is likely influenced by uncertain and inconsistent government policies, as well as the challenging political climate, which often makes it difficult for companies to operate locally. However, until an official announcement is made by Premier Motors, we can only rely on speculations and reports circulating on the internet.

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