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Breaking monopoly: Volkswagen to plant its feet in Pakistan?

Surprised they are not there already

List of Volkswagen Group factories - Wikipedia, the free encyclopedia

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Volkswagen is pretty much everywhere and they are very successful.

However Volkswagen has had a bit of a bad rep in the USA due to some crappy quality cars in the 1990's. They haven't been able to break into the top 20 model sales since.
Team USA | Page 80

This was just published today
VW exec tackles quality woes

"The VW brand was fourth from the bottom in this year's J.D. Power Initial Quality Study."
 
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atleast now Mehran crap will now try to improve to stay in competition.
 
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It is always good to see healthy competition. Volkswagen is going to break the monopoly but it's certain not going to be the cheapest model in Pakistan. It does come with quality however so expect better designs, safety features and performance from the rivals
 
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That will be a great thing when it happens. If we can persuade them to set up an assembly plant to start with that will be awesome. We/They can always build from there. This will not only bring in foreign investment but will also create job opportunities and most importantly, give the stupid Toyota, Honda and Suzuki a TOUGH competition. These are milking our public selling stupid crappy cars for hefty prices. A mehran in 900000 is as unfair as it may get.

On a personal level, it will make me use my Cultus for another year or two hoping i can get the choice of VW by that time, :P was just about to change the car
 
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That will be a great thing when it happens. If we can persuade them to set up an assembly plant to start with that will be awesome. We/They can always build from there. This will not only bring in foreign investment but will also create job opportunities and most importantly, give the stupid Toyota, Honda and Suzuki a TOUGH competition. These are milking our public selling stupid crappy cars for hefty prices. A mehran in 900000 is as unfair as it may get.

On a personal level, it will make me use my Cultus for another year or two hoping i can get the choice of VW by that time, :P was just about to change the car

Only feature that has changed from a 1300cc option since I bought my car in 1996 is ABS brakes. If I sell this margalla I couldn't even buy a new mehran. VW is a good option but it will definitely be as over priced when compared to the local junkers. Having more options is always a good thing but does not mean everyone will change how they do business. Different cars are built for different segments of society.
 
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That will be a great thing when it happens. If we can persuade them to set up an assembly plant to start with that will be awesome. We/They can always build from there. This will not only bring in foreign investment but will also create job opportunities and most importantly, give the stupid Toyota, Honda and Suzuki a TOUGH competition. These are milking our public selling stupid crappy cars for hefty prices. A mehran in 900000 is as unfair as it may get.

On a personal level, it will make me use my Cultus for another year or two hoping i can get the choice of VW by that time, :P was just about to change the car

Suzuki Cultus is about 647880 INR.... that's expensive for an ugly *** looking car.... no offence bro....
VW will probably get Polo & Vento..... happy driving....
 
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Suzuki Cultus is about 647880 INR.... that's expensive for an ugly *** looking car.... no offence bro....
VW will probably get Polo & Vento..... happy driving....
It surely is an ugly looking car, why would i be offended when you are stating a universal truth :P
was planning to change it this year but no VW news is making me pause a bit, to be true, the auto mobile brand i LOVE is VW and Audi,, for me, personally these are the two best automobile manufacturers. Making tough, reliable cars in exquisite deigns.

Only feature that has changed from a 1300cc option since I bought my car in 1996 is ABS brakes. If I sell this margalla I couldn't even buy a new mehran. VW is a good option but it will definitely be as over priced when compared to the local junkers. Having more options is always a good thing but does not mean everyone will change how they do business. Different cars are built for different segments of society.
It wont be a game changer for sure as far as the overall market is concerned but it will be a good step forward for Pakistan and will also be good for the consumers. Will surely have some positive impact from consumers point of view. Competition will at least make Suzuki offer mehran with some half decent features. Otherwise in current options, i was thinking about going for the refurbished Japanese options, there are some good models available in that section and would have opted for one of those. In local assembles, Honda City is a relatively better option as far as i have worked
 
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It surely is an ugly looking car, why would i be offended when you are stating a universal truth :P
was planning to change it this year but no VW news is making me pause a bit, to be true, the auto mobile brand i LOVE is VW and Audi,, for me, personally these are the two best automobile manufacturers. Making tough, reliable cars in exquisite deigns.

Yes VW is wonderful.... We have a Polo in the family....
But, I am little more inclined towards Honda in Asian markets..... besides the fact that I drive one.....
Honda is present in Pak.... what models do you get there?
VW is worth the wait.... the new Polo & Vento have such timeless classical design....

Audi is in a diff league altogether :woot:... would love to own one...someday....
 
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This is really a welcoming NEWS, this development will further restore investors confidence in Pakistan and will help get in more investors....
 
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ISLAMABAD: The incumbent government has gotten a rare opportunity to break the decades’ old monopoly of local car assemblers as world-renowned auto manufacturer, Volkswagen, is keen to introduce its brands in Pakistan.

Germany’s biggest and the world’s second largest automobile manufacturer in terms of market share, Volkswagen, wants to do business in Pakistan, said an official of the Board of Investment (BoI).

A 14-member business delegation of Germany businessmen is visiting Pakistan including representatives of automobile company, Volkswagen, said Dr Cyrill Nunn, German Ambassador to Pakistan on Tuesday. He was addressing a press conference to share details of what he described as a “highly important” visit.

According to Pakistani officials, Volkswagen was keen to do business and the government also wanted at least one European brand to set up a plant in the country to break the monopoly of local car assemblers. They said the three local assemblers have colluded and resultantly, on average, a locally-assembled car is roughly Rs500,000 expensive.

In allowing the new manufacturer to set up plants, the government has to amend its existing automobile policy, said Pakistani officials. They added that the government has decided, in principle, to amend the automobile policy and will add medium-knocked down (MKD) units in the definition. The German officials had requested the government to accommodate semi-knocked down and MKD units in the automobile category.

The Volkswagen is said to be engaged in negotiations with prospective local partners, said Pakistani officials.

In the next two years, the government will try to introduce at least one European brand – German or Italian – said Miftah Ismail, BoI chairman, while talking to The Express Tribune. Ismail welcomed the German delegation, hoping that it will help strengthen bilateral economic ties.

“To get such a delegation into Pakistan, you have to persuade them and once they are in Pakistan they realise it’s a huge country,” said Dr Nunn.

Other areas of interest

Meanwhile, a multi-billion Euro energy giant, Voith, is also part of the business delegation. The company has won the contract for providing machinery and equipment for Dasu Hydropower Project and is now eying the Diamer-Bhasha Dam. Companies dealing in consumer goods and transportation are also part of the delegation, said the ambassador.

The delegation will hold meetings with Minister for Commerce, BoI, Chief Minister Punjab, besides meeting the business community leaders in Karachi.

The visiting delegation will be keen to know the steps the government was taking for economic reforms, reducing energy shortages and investment opportunities in Pakistan, said Dr Nunn.

Dr Nunn said that Pakistan’s decision to allocate funds for Diamer-Bhasha dam and two Liquefied Natural Gas-fired power plants in the new budget offers business opportunities and German companies will be bidding for these projects.

In 2014, Pakistan’s exports to Germany went up by 20% on the back of the Generalised System of Preference Plus scheme, said the ambassador. However, Germany’s exports to Pakistan plunged by 3.2% and this is also a reason behind the delegation’s visit, said the ambassador.

“The volume of bilateral trade, currently standing at €2.1 billion, is far less than the potential and even lower than Germany’s trade with countries like Bangladesh,” said Dr Nunn.

Breaking monopoly: Volkswagen to plant its feet in Pakistan? - The Express Tribune
Good we need lot more companies to come this would help reduce prices of cars in Pakistan and increase their quality.
 
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Yes VW is wonderful.... We have a Polo in the family....
But, I am little more inclined towards Honda in Asian markets..... besides the fact that I drive one.....
Honda is present in Pak.... what models do you get there?
VW is worth the wait.... the new Polo & Vento have such timeless classical design....

Audi is in a diff league altogether :woot:... would love to own one...someday....

Yes honday is good, among the best available here. My first choice to replace this Cultus of mine was to gor for some refurbished Japanese options but then i studied all the details, initial costs, fuel consumption, spare parts and off course, the car itself, looks and luxury/comfort and Honda City was the best i could find. In fact i was quite set to go for Honda City
Gray-Honda-City-Price-in-Pakistan-2015-New-Model-Features-Specs-Shape-Pics.png

However as i mentioned, the news about VW is great as it may not only offer a better alternative but may also effect current market prices. So thinking to wait for sometime.
 
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Surprised they are not there already

While Pakistan may have a large population, its car market is actually quite small in absolute numbers. That may explain why VW has not yet considered it for a plant until now.
 
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While Pakistan may have a large population, its car market is actually quite small in absolute numbers. That may explain why VW has not yet considered it for a plant until now.

I remember visiting Mexico in 1994ish and 99% of the cars on the road there (mostly taxis) were Volkswagens. I always thought they were the first ones into a market when they see a consumer demand brewing. Not sure how Suzuki and others beat them to Pakistan. I think Volkswagen got into China early.
 
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It is always good to see healthy competition. Volkswagen is going to break the monopoly but it's certain not going to be the cheapest model in Pakistan. It does come with quality however so expect better designs, safety features and performance from the rivals

Union amongst industrial units is GOP policy failure, not the fault of manufacturer's. In other countries even at the hint of collusion amongst manufacturers means millions of dollars in fine.

We lost Mercedes Benz investment, because of the vested interest parties made a lot of noise with the help of Retarded Pakistani media, to make sure they and only they can control pakistani market. If and when government polices are changed then and only then you will see investment other wise Suzuki of the 60s.

Want more investment Punish the culprits, make it impossible for the manufacturers to sit together, punish them with penalties for price fixing.
 
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