Months after the rumors of its arrival, Volkswagen, the German automaker has finally decided to enter the Pakistani market.
Prime Minister of Pakistan, Shahid Khaqan Abbasi while talking to Joseph Baumert, Volkswagen Board of management member on Wednesday welcomed the company and said that due to the improved security situation, both local and foreign investors will reap benefits from investing in Pakistan’s fast-growing economy.
Pakistan for long has been dominated by three big automakers who more likely have created a monopoly in the market. Thankfully the tide is changing due to the Automotive Development Policy (ADP) 2016-21 that has given major incentives for the foreign companies to start local assembly and manufacturing in Pakistan.
In June 2017, three companies got the official go-ahead by the government to establish manufacturing plants in Pakistan including; Nishat Group, KIA-Lucky Motors and United Motors Private Limited. AT that time it seemed that the European auto manufacturer is hesitant to enter the country as Volkswagen didn’t submit their application to set up a plant in Pakistan.
The entry of a renown European auto giant is a major win for the Pakistani economy especially for the auto industry which will receive a new flavor and hopefully affordable prices of automobiles as well.