These Clauses Should be Included in AIDEP 2021-26 Framework

Pakistan introduced its first-ever Auto Policy in 2016, the aim of which was to break the monopoly of 3 Japanese automakers in the market, generate healthy competition between players, shorten the delivery period, eliminate own/ premium, increase localization, bring down car prices and improve the quality of products offered to the customers.

Various automakers stepped into the business as a result of Auto Policy 2016-21, however majority of newcomers preferred dodging the competition while never trying to compete against the existing players by launching a product for volume buyers, and remained focused on offering premium priced products targeted towards those with strong purchase power.

Automakers don’t find it right to introduce products which target the mass market buyers, perhaps from a business point of view, profit margins on smaller and medium sized hatchbacks & sedans are thin and require more effort to compete. However like they say since rich are becoming richer, most of the products that have been introduced so far as well as those currently in the pipeline are offered for those with deep pockets. In most cases these expensive 4-wheelers actually cost more than a residential property.

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Some say the Musharraf era without an auto policy had much more to offer for mass market buyers. Chevrolet, Hyundai, Kia, Adam, Fiat, Mitsubishi, Proton, Nissan, Chery, Geely, Gonow were all offering cars that were well within the reach of masses and would directly compete against the existing options.

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