Govt’s New Auto Policy to End Monopoly of Big Automakers

As per the reports, the government is planning to formulate a new auto policy to end the monopoly of certain car companies in the local automotive market.

It also highlighted that the Auto Development Policy (ADP) 2016-21 will expire by 30 June, and that the Ministry of Industries and Production has stated that the new policy will allow for the import of cars.


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The policy provided numerous concessions and benefits to the automakers seeking to enter the Pakistani market.  Moreover, owing to the current ADP, numerous carmakers had either entered or made their comebacks to a warm reception by Pakistani consumers.

The report further states that the new policy will revoke the concessions given to entrants and that the rates of the taxes on the import of cars will be reduced. Additional concessions will be considered to encourage the import of cars.


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A few days ago, the federal government had directed the Ministry of Industries and Production (MoIP) to begin an investigation of the automotive firms to determine the details of their inability to increase production capacity.

The automakers’ inability to meet the demands of the local market has given rise to the illegal premium culture whereby certain dealerships add an additional amount over a car’s MSRP.

The introduction of the new policy for the auto industry is definitely a logical step forward. However, encouraging imports instead of country-based manufacturing is a questionable move as it goes against Prime Minister Imran Khan’s vision for a self-reliant and stable auto sector of Pakistan.

Via: 92 News


  • Price Control, Build Quality Checking, International Standard & Compulsory Features, :
    Profit Marging 10 to 20% of the Car Value should be;

  • On one hand I am against the low quality product in Pakistan by auto manufacturers and on the other against import. Import will hurt our economy. However the Govt needs to be strict on these auto manufacturers on quality. bring in NCAP style regime to ensure that the cars are at least 3 star and make laws that forces them to introduce new models every 5 years.


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