Premier Motors Shelves Plans to Launch Volkswagen & Skoda Vehicles in Pakistan

Premier Motors have reportedly shelved the plan to introduce locally assembled Volkswagen and Skoda vehicles in Pakistan. Although this is being reported by various sources, the company has not yet issued a public announcement.

The chapter of locally assembled Volkswagen cars began way back in November 2018 when German auto manufacturing giant Volkswagen AG and Premier Motors Limited (PML) signed an agreement for the manufacturing and assembling of Volkswagen commercial vehicles in Pakistan. PML was then awarded the Greenfield status under the Auto Policy 2016-21 for assembling & manufacturing under this agreement with Volkswagen AG.

The project hit several speed bumps particularly in 2020 due to the pandemic. However following that, while other automakers were able to kick off their proceedings, the VW project continued to proceed at a turtle pace. First, it was reported that locally assembled VW vehicles will hit the roads in 2021, then the date was shifted to 2023. By this time it was also being reported that Skoda vehicles will also be produced locally in the same facility.

VW hub

Then earlier this year, when the Consul General of Germany, Dr Rüdiger Lotz visited the plant, it was informed that the facility will be completed by 2024 with an annual production capacity of 32,000 units. However, the launch of locally made Volkswagen and Skoda automobiles in Pakistan, according to recent sources speculating on the internet, appears to be exceedingly implausible, especially given the deteriorating economic climate and political uncertainty.

Uncertain and inconsistent government policies, as well as the hostile political climate of the country, which makes it difficult for most companies to operate locally, are among the vulnerable causes behind such types of decisions. That being said, we will still have to wait for an official announcement from Premier Motors in this regard.

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