The Audi assembly plant in Pakistan is ‘likely’ to give reduce prices


audi assemble plant in pakistan

This is yet another fruit of the newly implemented auto policy of Pakistan. The country’s automotive sector is surely on many international investors hawk eye. The latest development has come in the form of the Audi assemble plant in Pakistan.

This is expressed by Audi AG lately through its authorized importer. A letter to the Board of Investment (BoI) has already been received for the same.  Ali Khan is the head of Audi AG at the Premier Systems Private Limited. This is the authorized retailer for Audi Ag in Pakistan. Ali has confirmed the news for the Audi assemble plant in Pakistan. He adds that land for the same is already purchased in Korangi. Korangi is Pakistan’s biggest industrial estates area and this means investment reach more than $30 million already.

Pakistan is one of the 57 countries where Audi is represented through authorized importers. This May, Audi AG signed an MoU with the Sindh Board of Investment (SBI) for looking into Pakistan’s auto-market potential. Just after 3 months, a letter of intent for an Audi assemble plant in Pakistan was received.

The reasons of potential

Low interest rates, rising middle class, need for international brands has made Pakistan a very viable place. Many foreign investors are attracted now while Renault’s partnership with Ghandhara Nissan is already announced.  Audi says that people are hungry to see a new brand here while vehicles are more affordable due to low interest rates. There are 40,000 Audis imported already through the grey market. This obviously means there is a lot of room for Audi here. Currently it is selling 900 Audis each year in Pakistan. Ali, thus says that this will be higher once the Audi assemble plant in Pakistan is up.

The green signal is being waited by the BoI while there will also be a 5 to 10% price decrease is assembled here. Though all this, still depends on the governments offers, yet Ali says the decrease will surely come. He even adds that with heavier ones of over 1.8 L categories a 20% decrease can also be expected.


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