German auto manufacturing giant Volkswagen AG and Pakistan Premier Motors (PPM) have signed an agreement for manufacturing and assembling of Volkswagen commercial vehicles in Pakistan. The agreement between both parties is based on the licensing contract of CKD assembly in Karachi.
Volkswagen for the last 2 years, has been in talks to introduce its Amarok pickup and T6 multi-seat passenger van in Pakistan. In November 2017, Dr. Joseph Baumert, Member Volkswagen Board of Management, also met the then Prime Minister of Pakistan Shahid Khaqan Abbasi, who welcomed the decision of Volkswagen to invest and undertake business venture in Pakistan and assured all possible facilitation and support to the company.
The Auto Policy 2016-21 has opened up doors for several foreign automakers who have collaborated with local companies and are in process of setting up their vehicle manufacturing facilities in Pakistan.