The federal government has decided to introduce a new auto policy from July aimed at strengthening Pakistan’s automotive sector, promoting electric vehicles (EVs) and making smaller cars more affordable for consumers.
Under the proposed policy, the government plans to bring the price of small cars down to between Rs2 million and Rs2.5 million, while expanding the country’s EV infrastructure. The proposal was discussed during a meeting of the National Assembly Standing Committee on Industries and Production.
Officials from the Ministry of Industries and Production informed lawmakers that the auto policy committee, headed by Federal Minister for Power Awais Leghari, is expected to finalise its recommendations this month following directions from Prime Minister Shehbaz Sharif.
According to the ministry, the policy seeks to reduce reliance on imported vehicles, strengthen local manufacturing and provide affordable transport options, particularly for middle-income families. It also aims to encourage the introduction of low-cost electric cars.
The government has set a target of establishing 3,000 EV charging stations across Pakistan by 2030 to support the growing adoption of electric vehicles. Officials also told the committee that around 160,000 electric motorcycles and 12,800 electric cars have been produced locally this year.
Committee members, however, raised concerns over the quality of locally manufactured electric motorcycles and their batteries. Some lawmakers claimed that batteries in several models lose performance within six months, stressing the need for stricter quality standards and improved manufacturing practices.
Members also questioned the transparency of the government’s Rs80,000 subsidy for electric motorcycles, with concerns that some eligible consumers had not benefited from the scheme. A parliamentary subcommittee was formed to investigate complaints regarding substandard vehicles, battery quality and the distribution of subsidies.
Separately, Proton informed the committee that it had refunded 93% of customers affected by delayed vehicle deliveries, returning Rs1.1 billion to 816 buyers, while the remaining cases are being processed.