After several delays due to the COVID-19 pandemic, construction of the Volkswagen plant in Pakistan will officially commence within this quarter. This new entry in the Pakistani automobile market will significantly contribute to growth within this sector.

In 2018, Volkswagen AG signed the final legal agreement for manufacturing commercial vehicles with Premier Motors Ltd in Hanover, Germany. This agreement was a major breakthrough in the automotive sector of Pakistan.

According to this agreement, Volkswagen would invest $135 million to set up an assembly unit in Pakistan. While the company had initially planned to start production in 2021, the construction of the plant was delayed due to the global pandemic.

It is important to note that this plant will have the capacity to produce 28,000 vehicles annually.

The automaker also plans on manufacturing its Amarok Truck and Transporter Van in Pakistan, which will compete with Toyota Hilux and KIA Grand Carnival in the Pakistani market, respectively.

According to reports by Pakwheels.com, the construction of this plant will take approximately two years to complete.