Pakistan’s local automotive industry is in the developing stage. As we have achieved many advanced technologies but still we are far behind international auto technology. Pakistan auto industry growing very fast from the last few years. In2019 government has announced the new SRO for used imported vehicles that are highly affected by the local car sale. Under the new used car import policy, the used vehicles can be imported by:

  • Personal Baggage
  • Gift Scheme
  • Transfer of Residence

The person who lay in the above mention condition can import used cars. The government has strictly applied this law to all over Pakistan. After the SRO 52 (1) 2019 Pakistan local manufactured car sale increase. But after the Financial Budget 2019-2020 local car prices hugely increase because the government has imposed new taxes on all locally manufactured vehicles.


Also Checkout: Suzuki Alto 9th gen is All Set to Reveal in December 2020

Budget 2019-2020 for local Cars Tax

In the budget speech, the 2019-2020 government has imposed Federal Excise Duty (FED) on all vehicles. On the other side, the unstable situation of dollar strength also impacts the sale of Pakistan’s local cars. After FED Tax and increase of dollar rate impact the car prices. After decreasing sales auto manufacturers announced different promotions to engage customers with the sale. However local car sales are stable rather than in previous years and it’s just because of the low import of used cars. In Pakistan Japanese used cars are imported at a high level because these are available at very low prices and offer advanced features as compared to the locally manufactured cars.

Budget 2019-2020 for local Cars Tax

Also Checkout: Honda City 7th Generation Soon To Launch in Pakistan

Safety Standards for Local Cars

The government has fixed 7 safety standards for locally manufactured cars. The government has to try to compete with local cars with international manufactured cars. Ministry of Science and Technology has confirmed that all Pakistan local cars will manufacture under the new safety standards and never be improved without these safety features. The government has announced new standards to make sure that the vehicles provide full security to passengers and drivers. Here are the safety features announced by the Ministry:

  • Air-Bags
  • High-Quality Brakes
  • Windscreen
  • High-Quality Head Lights
  • High-Quality Wiper

Its expected that after the announcement of new standards automakers will increase the prices of vehicles but Ministry has confirmed that automakers should adjust new features in the current prices. After any new announcement by the government, automakers increased the car prices but this time government has ensured that the prices will remain the same. The government will never allow any relaxation in safety standards.

Safety Standards for Local Cars

Also Checkout: Toyota Corolla Cross Soon To Launch In Pakistan

The entrance of New Auto Makers

Over the last two years, the Pakistan auto industry has welcome many new automakers. The entrance of new auto manufacturers increases the competition for cars in Pakistan. The new car manufacturers offer cars at very low prices to compete with the market and old auto manufacturers. The entrance of new car makers offers new and advanced vehicles at very low prices. Previously there were few automakers in Pakistan and we haven’t more options to choose a vehicle. Now we have many options to buy the cheapest car prices with advanced features.

The entrance of New Auto Makers

Also Checkout: BAIC Launches D20 Hatchback With Cheapest Price Tag

How Pakistan local Cars Grow

This is a great opportunity for local automakers to grow up and increase the sale because the import of used cars hugely declines in the country. Unfortunately, the lake of advanced features decreases the value of local cars but now local automakers have a chance to develop their vehicles and engage customers with sales. Local cars sale can grow up if automakers provide relief to customers. Here are some essentials things that our automakers should adopt:

  • Prices of Pakistan local cars are very high automakers should decrease car prices.
  • The lake of advanced features discourages people to buy local car automakers should provide advanced features.
  • Different types of promotions attract customers if automakers announced promotions they can increase car sales.
How Pakistan local Cars Grow

Also Checkout: Massive Hike in PAK Suzuki Car Prices! Up To Rs 1Million


However, our car industry needs many improvements in which the lake of advanced features is top of the list. Cars sale can only increase if the prices will down. A large number of people in Pakistan looking for cheap prices cars and unfortunately car prices are very high. Sometimes automakers increase car prices without any reason like after COVID-19 and budget speech 2020-21. Even the government has never imposed any new taxes in budget 2020-21 but automakers increase car prices. The local automotive industry can be the biggest reason for government income if the sale increase.in this part government also give relief to them in term of auto parts custom duty.

Recent Articles: