automobile industry

Pakistan's automobile industry faces a policy dilemma as the government considers lower tariffs, with manufacturers warning of plant closures and critics highlighting past issues like high prices and limited consumer choice. The industry has developed some capabilities but flawed goals like localisation and job creation have hindered progress toward global competitiveness.

The Centre has released another draft of CAFE-III regulations, offering special recognition to ethanol and biofuel cars. Industry stakeholders have until August 6 to respond, as the proposed norms have caused division between manufacturers of smaller and larger vehicles.