Volkswagen Car Launch in Pakistan Cancelled

03 Aug 2023

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Volkswagen Car Launch in Pakistan Cancelled

The prevailing economic unrest and political hostility in Pakistan have not only impacted existing market players but also hindered the plans of new car companies entering the country. Premier Motors Limited (PML) had initially signed an agreement to bring German giant Volkswagen to Pakistan for assembly. However, due to various delays and unfavorable economic policies, the plan has been shelved indefinitely.

Pandemic and Policy Hurdles Slow Down Volkswagen's Entry

The story began in November 2018 when Premier Motors Limited (PML) and Volkswagen signed an agreement for assembling Volkswagen commercial vehicles in Pakistan. The pandemic hit, causing significant delays that affected the project's progress. Despite being granted Greenfield Status under the policy 2016, the plan faced numerous obstacles.

Multiple Delays Raise Doubts on Volkswagen's Future in Pakistan

The Volkswagen project experienced a series of delays, while other car assemblers managed to proceed without major setbacks. Initially, the plan aimed to have Volkswagen cars operational on the streets by 2021, which was later pushed to 2023. The same facility was also intended for the local production of Skoda vehicles, but progress remained sluggish.

Uncertain Future for Volkswagen and Skoda in Pakistan

Despite announcements of the project being on track to finish by 2024 and boasting a production capacity of 32,000 units annually, the prevailing economic conditions and political uncertainty make the likelihood of Volkswagen and Skoda cars hitting the local roads highly implausible.

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