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A Pakistani worker cleans a parked car in a showroom in Karachi told AFP.
People gather around vehicles parked in a car showroom in Quetta AFP.
The automotive market ISLAMABAD Pakistan has been dominated by Japanese manufacturers for decades, but a mini economic recovery looks set to attract new players from Europe and Korea in the mix.
Despite heavy taxes on imported vehicles, enthusiasm for owning a car in Pakistan remained undented thanks in part to transport underdeveloped in sprawling cities, but also the social status it brings.
Toyota, Suzuki car assembly factories and Honda are already working around the clock in the port city of Karachi and Lahore even Eastern customers can wait up to four months for new vehicles to deliver.
Now, the demand for cars in the South Asian giant's 200 million people still accelerates faster than economic growth reached its fastest pace since 2008 in a revival of investor confidence and inflation stimulated the easing in consumer spending.
Anxious to cash, a delegation of German auto giant Volkswagen visited the country in recent weeks, according to Pakistani officials and German diplomats.
The company's spokesman Christoph Adomat told AFP that if Volkswagen is constantly evaluating market opportunities globally, there are no decisions for an investment of Volkswagen side Pakistan.
Miftah Ismail, President of the Board of Investment of Pakistan who attended the talks, said Volkswagen was not the only company expressing interest.
There are a number of other companies in South Korea and Europe as we speak to think that the establishment of assembly plants in Pakistan, he said, without naming the companies.
More on VW beats Toyota to become the largest automaker.
US and European cars dominated the roads of Pakistan in the early years after independence from Britain in 1947.
But fuel prices have made their Japanese rivals compact, efficient and most popular of the 1960s manufacturers such as Toyota, Suzuki and Honda have gained a stranglehold on the market.
Fiat made a brief incursion of Italy in the 1990s, when the South Korean Hyundai and Chevrolet owned by Daewoo and tried failed to gain a foothold in the 2000s before the financial crisis forced them to leave.
Because Pakistan load heavy taxes on imported cars under three years, Japanese companies with operations in the country of assembly may set prices well above the regional average.
The low end Suzuki Mehran costs the equivalent of 6,300 in Pakistan, but sells for around 3,900 in neighboring India the most popular Corolla sedan starts March 1 Rs1 6 million 16,000, but buyers have to wait months or pay 1500 for fast delivery.
The news that Volkswagen is exploring options to enter the Pakistani market excited car lovers who are tired of the high prices and limited choice.
I think it is a good idea because the Volkswagen cars are value for money and reliability, said Romano Karim, a fan of the classic Volkswagen Beetles of the 60 and 70 which can often be seen on the roads Pakistan.
Haji Mohammad Shahzad, president of the All Pakistan Motor Dealers Association, added that Volkswagen has in the market would help drive costs down.
The monopoly of the big three could be broken if Volkswagen produces at least 20,000-25,000 cars a year, Shahzad told AFP.
Global auto giants are attracted to the thriving economy of Pakistan, the International Monetary Fund expects growth of 4 from 5 percent in the coming year.
Investor confidence in the average savings of 232 billion improved since a new government favorable to businesses headed by Nawaz Sharif took power in 2013, the Karachi share market among the 10 artists in the world last year.
The country is also experiencing a boom of the major building driven by Chinese investment after President Xi Jinping visited Islamabad in April to unveil a plan to invest 46 billion known as the Economic Corridor China-Pakistan.
Also read their car sales boom, cross 150,000 mark.
Car sales also boomed thanks to the growth of the car rental facilities and sales financing in the 11 months to May this year rose 30pc from a year earlier, according to the group of the automotive industry the Pakistan Association of manufacturers.
Baber Kaleem Khan, magazine editor, said Volkswagen would be well placed to take advantage of the low mid-range market.
Haven Pakistani automakers t really have much competition because their fields are well protected by monopolistic business practices, Khan told AFP.
But given the small impressive array of vehicles, the German automaker VW could take the market from the start of the ground and start working up.
Read also Pakistan's reform history as economist better than India.
Had great respect for AFP But such a part sluggish VW says that no decision of the VW side but the AFP to everyone in the new party like Suzuki and Toyota are now close tomorrow after reading part AFP Regardless of market dynamics, it can actually be a wow automotive expert and having millions of dollars invested Japanese fill a bucket of water in wells in Pakistan, I guess AFP should seriously consider referesher course for its reporting staff.
A very good idea, but at the same time the government must consider the practices of this Agreement and fine them heavily, and to ensure that 90 percent of the parts are manufactured in Pakistan, as well as technology transfer, otherwise these white units should be closed German manufacturers are my very good job and should have unrivaled access.
The competition helps consumers and the economy, I hope VW to set up a factory because German cars are well known for their quality and reliability, it is really good to hear that the government does its best to attract investment.
Ppl in Asian countries regret after buying vw they are not after-sales service is the vw guys confidence that they are conmen u want German car mercedes the only reliable German car BMW n vw are problematic.
VW cars are qualified as reliable, efficient and very popular in the UK If it does between Pakistan, which would be beneficial in Pakistan should also try to get the South Korean Hyundai and Kia cars, entering its market these brands produce very good and reliable cars and their popularity is growing rapidly worldwide.
I own several car dealerships and sold thousands of cars in the USA I can say with confidence that the cars are VW builds inferior compared to Toyota and Honda.
Here, we had to take Indian market lesson every time I visit there, it amazed me when I see the price of the vehicle and variety there as Scorpio and Tata sedan cars are a good example the Indian automobile industry recently, I was surprised to see a 4X4 version mahindara type CJ7 in the motorcycle industry if a young biker will visit India, he will be surprised to see their great models market for heavy bikes m did so wish when there would be good relations between India and Pakistan and we can import these bikes there.
Did Pakistan ever produce cleaner cars Thousands of the steel plant workers are not getting their salaries because there is no output because of incompetence Rulers r if no vision here tht thy spend billions on metros and even money is enough to add the car manufacturing plant in Pak SM is the same pencil and sharpners import from China, causing the stop of its own industries Each young pak pak thought to flee to feed ownself and family because it r n pak no possibility due to the decline of the industry.
Pak hv to say no to import things thatcan easily made here, go for the hydropower production and support its industry and motivate investors and narrowing induatrialist to launch more products import level and graph export.
Someone please save us from the tyranny of Pak Suzuki, Honda and Toyota Indus Atlast These three are overcharging us for quality cars below the government's approach each year to imported cars unaffordable here .
Both cars come with locally made manufacturing defects and minimum security features imported cars that cost less than half the price of locally made cars can not be imported because the car agreement Pakistan bribed the people involved in power each year.
Abbas Ali I think it's the other way, I would love me to have a German car but import duties staggering leave earned me do that Imagine if you could get a Volkswagen for a few more lakes I do not think anyone would want a Corolla and the whole is that imported cars are made too expensive that only the richest class can offer the rest of us juggle stuck between the three, Toyota, Honda and Suzuki .
Japanesedominated automotive market of Pakistan on point for newcomers in Pakistan, pakistan, market ready.