Business

Pakistan Planning to Launch New Small Cars Category With Cheaper-Than-Alto Prices

The Government of Pakistan is considering introducing a new L6/L7 affordable small vehicle category as part of reforms being discussed under the draft New Auto Industry Development & Export Policy (AIDEP) 2026–31.

ProPakistani was informed that the proposed category aims to bridge Pakistan’s long-standing affordability gap between three-wheelers and entry-level 660cc cars.

The proposal targets lower-middle-income households, motorcycle users upgrading to safer transport, and first-time vehicle buyers priced out of conventional cars.

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Under the plan, L6/L7 vehicles would be smaller, lightweight, and fuel-efficient urban cars designed for city commuting. Sources said this segment could help expand car ownership while encouraging localized manufacturing and new investment in the country’s small-vehicle ecosystem.

Pakistan’s current car market lacks a true entry-level four-wheel option, which has forced many consumers to rely on motorcycles despite safety concerns.

If approved, the category could support affordable personal mobility, reduced urban congestion risks, expansion of domestic auto assembly, and broader documentation of transport activity.

Sources clarified that the proposal is still under review within the upcoming auto policy framework and no final approval has been issued yet.

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  • Do Pakistan go backwards? The world is moving fast towards green mobility. What's vision 2030? No shame?

  • Jb launch krni chahiye thi tb to ki nahi, ab jb puri Dunia green energy pe shift horahi hai AUR ab inko yaad araha hai. Wah kia planning hai.. Had hogayi....

  • Pro-people commitment makes things in easy reach of the people. Generally pro-people spirit is missing in Asia and Africa. One can have a little research in this deficiency!

  • EVs are complete failure.... globally (in UK alone, five Li-ion battery fire reported every day; Scooty, cars, SUVs). Pakistan needs its own raw materials (steel, aluminum), manufacturing (efficient ICE engines, transmission, suspension, electronics), indigenous R&D, designs to meet local conditions. Can collaborate with other south Asian countries & Japan for tech. transfer. Perhaps, one can also explore Velomobiles / four wheel cycles form Europe

  • Make extra lanes to make motorbikes and bicycles more safe instead of promoting mad race of travelling by cars

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Business Desk