KARACHI: The Volkswagen, Europe’s largest auto maker, will likely to introduce one of its car brands in Pakistan soon, said Chief Executive Officer (CEO) of Engineering Development Board (EDB), Tariq Ejaz Chaudhary.
‘Good developments take times and go steadily, since Volkswagen is keen to invest in Pakistan so entry of new players in Pakistani auto market is a viable prospect and it will be materialized soon’, Chaudhary told Daily Times.
He said that bilateral relation takes time and after Brexit (UK’s exit form European Union), global business dynamics have been changed and things are now going in different direction.
‘Global action and events often drive the investment perspectives of multinational conglomerates while Pakistan has huge potential for international investors and the other auto giants like Audi are also showing interest in Pakistan’s auto sector’, Volkswagen is considering that what kinds of brands to introduce first in Pakistan with local partner’, the EDB’s CEO stated.
Chaudhary said new auto policy is already proving to be fruitful and country will have strong competition in auto market in the offing as incentives to new entrants with tax and duty benefits will yield. He criticized the local auto assemblers for not introducing modern technologies with reference to the safety measures adding that local assemblers are confined to outdated models. He said manufacturing of the four wheelers in Pakistan are running at under capacity utilization due to which the prices of locally manufactured vehicles and import of used cars are increasing.
Chaudhary also emphasized on the quality related issues and technological advancement so that we could also exports auto products to other countries besides meeting of local demand.
However, on the other hand , sources claimed that Volkswagen and French car giant Renault raised serious concerns over Pakistan’ three years old used car import policy due to which international car makers are indecisive over joint venture investment in Pakistan.
Sources said that Volkswagen has asked the government of Pakistan to revisit its used car import policy. They added that the manufacturers of German’s Pride Volkswagen and French’s dignity Renault were inclined to make joint ventures investment inPakistan, but the used car policy was the main reason to hinder the progress.
It is important to mention here that, earlier this year; the German premium automobile brand Audi AG signed a memorandum of understanding with the Sindh Board of Investment (BoI) in order to start a feasibility study to assemble their vehicles in Sindh,Pakistan. Under the MoU, the German carmaker will explore various aspects of investing in Pakistan including merits and demerits.
In neighboring country, India, the Volkswagen is represented by five brands including SKODA, Volkswagen, Audi, Porsche and Lamborghini while the Volkswagen is globally represented by 12 brands from 7 European countries, 11 automotive brands including Volkswagen passenger cars, Audi, Bentley, Bugatti, Lamborghini, Porsche, Scania, SEAT, SKODA, Volkswagen Commercial Vehicles (Volkswagen Nutzfahrzeuge) and MAN and 1 motorcycle brand Ducati.