Audi is interested in started an assembly plant in Pakistan.
Presently, Audi sells its cars through an authorized importer in the country. The authorized importer has been contacted by Audi to submit a letter on the company’s behalf to the Board of Investment (BoI) for consideration.
Ali Khan, Head of automotive at Premier Systems Private Limited (the authorized importer for Audi AG in Pakistan) confirmed by saying, “Audi AG has expressed the interest via its authorized importer in Pakistan to set up an assembly plant in Pakistan.”
Head of automotive at Premier Systems Private Limited also informed that land for the plant has been purchased in Korangi, near one of Pakistan’s biggest industrial estates. The company plans to invest nearly over $30 million in order to setup the new assembly plant.
Audi generally uses authorized importers as representatives or manufacturing plants in different countries around the globe. Pakistani customers have shown interest in Audi branded vehicles, resulting in the call for investment. Currently, Pakistan is one of the 57 countries where Audi AG is represented by an authorized importer.
Ali Khan said, “Audi AG first signed a memorandum of understanding with the Sindh Board of Investment (SBI) to consider Pakistan as a potential market in May this year. We studied the automotive policy (approved by the government in March) to see if it’s a viable case. After three-and-a-half months, we, on behalf of Audi AG, sent the letter of intent to BoI, expressing that we would like to assemble vehicles in Pakistan.”
Audi currently sells around 900 vehicles in Pakistan every year, a number which is expected to increase once local assembly begins. The company also expects the prices for lower engine cars to be condensed by around 5% to 10% after local assembly starts. Heavier engine models could see a decrease of up to 20% in price. In other words, a car like A3 could cost between Rs. 3.6 million and Rs. 3.8 million down from Rs. 4 million.