Impact on Local Auto Industry

While lower tariffs benefit consumers, they create pressure on local assemblers.

Key Industry Effects

Area	Impact
Local Manufacturing	Increased competition
Localization	Push for higher local parts usage
Pricing Strategy	More competitive pricing required
Innovation	Faster shift towards EVs and hybrids

The government aims to strike a balance by encouraging local production while gradually opening up the market.

For EV adoption trends globally, refer to International Energy Agency reports.

Policy Reforms Beyond Tariffs

The Auto Policy 2026 is not just about duties. It also includes regulatory improvements.

Key Policy Measures

No new regulatory duties on imports
Gradual removal of additional customs duties
Introduction of the Motor Vehicle Development Act
Stricter rules on gift and transfer schemes
End of personal baggage vehicle import scheme

These changes aim to create a transparent and fair auto market in Pakistan.

What This Means for Car Buyers in 2026

For buyers, this policy could open up new opportunities:

More imported car options in Pakistan
Better pricing on used vehicles
Increased competition leading to improved features
Faster availability of electric vehicles (EVs)

However, buyers should stay cautious about hidden costs, including taxes, registration, and currency fluctuations.

For verified car insights and market trends, check Car Advisers’ own research and global databases like Statista.

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FAQs

Will car prices decrease in Pakistan after the new auto policy?

Prices may gradually decrease, especially for imported and used cars, but the impact will depend on exchange rates and taxes.

What is the new tariff rate for imported cars?

The maximum tariff is expected to be capped at 15% under the new policy.

Will used car imports become cheaper?

Yes, regulatory duties on used imports will be reduced to zero by 2030.

How will this affect local car manufacturers?

Local manufacturers will face increased competition and may need to improve pricing and features.

Is this policy good for EV adoption in Pakistan?

Yes, lower tariffs on EV components can accelerate electric vehicle growth.

Final Thoughts

Pakistan’s Auto Policy 2026 signals a long-term shift towards a more open and competitive automotive market. While the benefits will take time to fully materialize, the direction is clear: more choices, better pricing, and global alignment.

For buyers, this is the time to stay informed, compare options, and plan purchases strategically.

What do you think-will lower import duties actually make cars affordable in Pakistan?

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