Volkswagen is finally going to start work on its production plant in Pakistan after considerable delays due to the pandemic situation. As per the market news, construction work on the site will officially begin this quarter. This new development is expected to significantly contribute towards the Pakistani automotive market.

In 2018 Volkswagen AG signed a definitive legal agreement for the production of commercial vehicles with Premier Motors Ltd in Hannover, Germany. This agreement marks a major breakthrough in the automotive sector in Pakistan.

Under the agreement, Volkswagen will invest $ 135 million in an assembly plant in Pakistan. Although the company tentatively planned to start production in 2021, construction of the plant was delayed due to the global pandemic.

It is important to note that the capacity of this plant will be 28 thousand vehicles per year.

The automaker also plans to produce Amarok and Transporter Van vehicles in Pakistan, which will compete with Toyota Hilux and KIA Grand Carnival in the Pakistani market.

As per analyst’s estimate, the plant will be operational in roughly two years.

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