Karachi, March 3, 2026 – Indus Motor Company Limited has urged the government to clearly define technical and regulatory parameters for imported vehicles, emphasizing the need to ensure safety standards and protect consumer welfare in Pakistan’s auto market.
During an analyst briefing, the company highlighted concerns regarding the commercial import of used vehicles and stressed that imported units should be subject to the same regulatory standards as locally assembled vehicles.
Demand for Clear Technical Standards
The call follows the government’s September 2025 policy decision allowing commercial imports of used cars up to five years old. Indus Motor stated that without clearly defined technical and compliance requirements, local manufacturers could face an uneven regulatory environment.
The company emphasized that specific safety, environmental, and quality benchmarks must be introduced for imported vehicles to maintain fair competition and safeguard consumers.
Auto Industry Policy 2026–31 in Focus
The government is currently formulating the Auto Industry Policy 2026–31, which will replace the existing framework set to expire in June 2026. The upcoming policy is expected to align with the National Tariff Policy under Pakistan’s IMF Extended Fund Facility (EFF), signaling a shift toward a more structured and market-driven auto sector.
Industry stakeholders, including Indus Motor, continue to advocate policy measures that support local vehicle assemblers and parts manufacturers. The company has recommended easing restrictions on auto financing up to Rs3 million, offering tax and duty concessions on vehicle exports, and rationalizing price-related taxes to enhance consumer affordability.
Outlook for Local Auto Demand
Despite regulatory concerns, Indus Motor anticipates steady growth in demand for locally assembled vehicles, supported by a stabilizing economy, manageable inflation, and consistent financing rates. However, the company noted that the potential economic impact of recent regional conflicts remains uncertain.
Call for Tax and Duty Reforms
The automaker also encouraged the government to restructure the duty and tax regime for completely knocked down (CKD) vehicles to ensure a level playing field. By making the taxation framework more sustainable, the government could stimulate higher production volumes and strengthen the auto sector’s contribution to Pakistan’s economy.
Industry observers believe that clear regulatory guidelines for imported vehicles and a balanced auto policy will be critical in shaping the future competitiveness of Pakistan’s automobile market.