Volkswagen signs CKD assembly contract with Premier Motors Ltd.


On 7th November 2018, the renowned automotive venture Volkswagen AG and Pakistan Premier Motors Ltd (PML) signed the final legal agreement for manufacturing commercial vehicles.

The agreement between both the parties is based on the licensing contract of CKD Assembly in Karachi. This venture will prove to be a great addition in the automotive sector of Pakistan and would help fill the gap of vehicle supply in the country.

Volkswagen

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There was a great hype back in 2017 when Volkswagen and Premier Motors Ltd signed a Letter of Intent on 22nd June. The company has decided to influx investment in Pakistan. The Board Member of Management of German Automaker Volkswagen Dr. Joseph Baumert met the premier at his office, and the premier assured him that the government would make sure that the company gets all the facilities and help it needs.

After the Auto Policy 2016-21, many foreign automakers have collaborated with local companies to build vehicle manufacturing plant in Pakistan. The government strives to facilitate the new entrants in every possible way.


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Notable Replies

  1. super cool now I hope they also sign audi assembly contract too

  2. It seems it's a commerical vehicle contract not passanger cars.. Audi dont have commercial vehicles..

    Anyways good start..

  3. capsat says:

    with currency disparity & tariff anamolies it is going to be very hard before we see any roll out of locally assembled new brands i.e german / korean before 2022.

    based upon the assembly license these brands name can launch CBU units 12-18 months ahead of 1st locally assembled unit. like Indus launched imported CBU units in 1988 Starlet (1000cc) & Corolla (1300 cc) EE-90 before the PKDM Corolla (1300 cc) AE-101 booking was announced

  4. from the background pic it looks like passenger cars. Audi A3 and A4 are cheap if assembled locally will give tough competition to Corolla and civic

  5. capsat says:

    volkwagen is targetting cargo van, minibus & mini-van market which is untapped to date since Mazda & Shehzore have vanished, The sedan, hatch & suv segment is in 2025 plan

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