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 in Hanover, Germany.

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.

As per a local media outlet, Volkswagen will assemble Amarok, Transporter T-6, Caddy, and Skoda vehicles in the country. At the initial phase, around 28,000 units of Amarok and T-6 will be assembled and in the second and third production drives, the company will assemble Caddy and Skoda vehicles in Pakistan.

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 make an 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. 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

  4. Background is just a generic poster and it's a VW cargo van.
    Well even a base entry level A3 with limited features cost over 24000 GBP in UK, which is much bigger market. I don't see a PKDM Audi vehicles anytime soon. Even if they start production , it will not be in same price bracket of Corolla or Civic.. Audi is premium brand and no where their vehicles are sold as same price point as a economy sedans.. that's why they are called premium cars.

    A3 in India where its locally produced comes with base price of 3.5 Million before tax and registration for a petrol varaint. Just for a sake of simple calculations, it is almost over 6 Million PKR. Pakistan has a small market and companies like Audi also look at ROI, we have a huge middle class who cant even afford a mid 2.5 Million vehicle easily.
    We need to see market needs and dynamics and any new company will not just invest billions.

  5. First phase: caddy, transporter, t6 light commercial vehicles
    Second phase: Skoda passenger vehicles.

    From what I've got.

    Will take quite some time though.

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