Pakistan automobile policy prioritises affordable cars, electric vehicles, and USD 6 billion export target

Pakistan has announced a new automobile policy aimed at cheaper vehicles and wider electric vehicle use. The plan also seeks to cut production costs, increase exports, and expand local manufacturing. Adviser to the Prime Minister on Industries and Production Haroon Akhtar Khan shared the main points at a news conference with Information Minister Attaullah Tarar, Radio Pakistan reported.

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Khan said the policy was built on six pillars. These included affordable vehicles for middle and lower-middle groups, export growth, electric vehicles, localisation, vehicle safety, and transparency. Khan also said import duties were reduced to bring down manufacturing costs. Khan said this would make locally built vehicles more affordable for low-income buyers.

Pakistan automobile policy targets affordable vehicles and lower costs

At the briefing, Khan linked duty cuts to expected retail price changes. "You will see that prices of cars will come down … the manufacturing cost of automakers will come down…The prices of all vehicles, except luxury vehicles, will come down, he said.\" Khan added that vehicles with engine capacity below 1,300 cc were a key priority.

Khan said the prime minister placed special focus on lowering prices for vehicles under 1,300 cc. Khan said steps were also taken to raise the local share of parts and assembly. Khan added that the policy aimed to support automobile exports as well. A target of USD 6 billion in automobile exports was set for the next five years.

Pakistan automobile policy links exports and local manufacturing

Tarar said the policy aimed to lift local vehicle production and boost exports. Tarar also said it sought affordable, quality, and environment-friendly vehicles. Tarar described the measures as broad, and said electric vehicles would receive special incentives. Tarar said local manufacturing remained important for the policy’s wider goals.

Tarar said electric mobility was already spreading in daily travel. Tarar said girls and women were increasingly using electric scooters for schools, colleges, and offices. Tarar added that electric motorcycles and scooters were growing rapidly in use. Tarar said this shift could also cut Pakistan’s oil import bill.

Tarar said the cost of oil imports ultimately affected poorer people most. Tarar said wider electric vehicle use could reduce that pressure over time. Tarar also said the local automobile industry needed export-focused production to gain fully. Tarar said employment gains would depend on manufacturing vehicles for export and expanding output.

With inputs from PTI