Govt. to Make New Auto Policy to End Monopoly of Big Automakers


Now Reading: Govt. to Make New Auto Policy to End Monopoly of Big Automakers

Reportedly, plans for a new auto policy are being made by the government, with the aim of ending the monopoly of certain big car companies in the local automotive market. The details of the reports are highlighting the fact that the Auto Development Policy (ADP) 2016-21 will expire by 30 June, and that the Ministry of Industries and Production has also mentioned that the new policy will allow for the import of cars.

The reports added that the policy had provided various concessions and benefits to the automakers that sought to enter Pakistan’s automotive market. Moreover, owing to the currently implemented ADP, numerous carmakers had either entered or made their comebacks to a very warm reception by the consumers in Pakistan.

Keeping this fact in mind, the report further states that the new policy will be revoking the current concessions given to new entrants and that the rates of the taxes on the import of cars will get a reduction. Aside from this, additional concessions will also be considered in order to encourage the import of cars.


A few days earlier, the Ministry of Industries and Production (MoIP) had been directed by the federal government to begin an investigation of the automotive firms in order to determine the details of their inability to increase their production capacities. This is because the automakers’ inability to meet the demands of the local market has ended up giving rise to the illegal premium culture whereby certain dealerships charge an additional amount over a car’s MSRP.

It is important to note that while the introduction of the new policy for the auto industry is definitely a logical step moving forward, its is also undoubtedly true that encouraging imports instead of country-based manufacturing goes against Prime Minister Imran Khan’s vision for a self-reliant and stable auto sector of Pakistan. So depending on how it is looked at, it might end up going south. Hopefully, that is not the case!


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