Tuesday, September 16 2025

Auto sector warns draft law may ‘criminalise’ business
The country’s auto sector has raised strong objections to the draft Motor Vehicles Industry Development Act 2025, warning that instead of promoting growth, the proposed law risks stifling investment, inflating costs, and even criminalising legitimate business practices. Industry leaders argue the legislation was drafted without consulting stakeholders and hands sweeping powers to bureaucratic bodies, particularly the Engineering Development Board (EDB). They warn that vague and punitive provisions could discourage investors at a time when the government is seeking stability and foreign capital. One of the most contentious elements is the classification of routine matters — including recalls and warranty disputes — as cognisable offences enforceable by the Federal Investigation Agency (FIA). Automakers say this equates manufacturers with criminals and will undermine confidence.
Related news categories: auto-assembler business economic-indicators misc

Wednesday, September 10 2025

Yamaha discontinues bike assembly
In a significant development for Pakistan’s organised auto sector, Yamaha Motor Pakistan Ltd (YMPL) has announced the discontinuation of its motorcycle assembly operations. The decision comes as part of a change in the company’s business strategy. According to a letter posted on the company’s website and sent to its authorised dealers, Yamaha will continue to supply spare parts through its authorised network, ensuring adequate stock to meet dealer requirements. The company also reiterated its commitment to providing warranty services and customer support under the existing warranty scheme. YMPL had been producing four models with prices ranging from Rs429,500 to Rs493,500. The Yamaha YBR125, initially launched at Rs129,400, saw its price rise to Rs471,500 due to the devaluation of the rupee and escalating production costs.
Related news categories: auto-assembler business economic-indicators misc

Monday, September 08 2025

Removing the auto sector’s training wheels
Though we have celebrated 78 years of independence, our economic independence falls short with every new International Monetary Fund (IMF) programme. Under the National Tariff Policy 2025–30, Pakistan plans to gradually flatten its customs regime by normalising commercial imports of used vehicles, liberalising trade and reducing protection for industries that failed to scale. Under this new liberalisation programme, automakers are particularly agitated. The auto industry’s recent protests against imported used cars are justifiable, but how long can we cradle a baby that refuses to grow up? The industry has enjoyed some of the highest effective rates of protection in the region, yet prices remain among the highest in Asia, volumes are stagnant, exports are negligible, and sales are sliding.
Related news categories: auto-assembler business economic-indicators misc

CORPORATE WINDOW: A legacy of unachieved auto goals
With the current auto policy soon expiring in June 2026, it is unfortunate that targets fixed under it between 2007 and 2025 have remained largely unmet owing to multiple reasons, but primarily due to the lack of consistent implementation by the government of its own policies. As per a report prepared by the Pakistan Automotive Parts and Accessories Manufacturers Association (Paapam), the low demand of vehicles, dwindling share of the auto sector in the gross domestic product (GDP), inconsistent policies, misusing the used-car import scheme, slow employment growth and exports were some of the main issues that were targeted and never achieved by successive governments.
Related news categories: auto-assembler business economic-indicators misc

Friday, August 22 2025

$131b regional auto trade at risk
Pakistan stands on the edge of a $131 billion regional automobile trade corridor, where even a 5% share could yield $6.5 billion in annual exports — 70 times higher than current levels. With its strategic geography and a vendor base already validated by leading Japanese, Korean and European automakers, Pakistan has the ingredients to become a significant player. Yet, a new report warns that abrupt tariff changes and the normalisation of used-car imports threaten to derail the progress made by the country's auto-parts ecosystem. Monsoon travel packages The report by the Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) highlights that Pakistan's auto-parts ecosystem has been built painstakingly over decades. It now consists of more than 1,200 Tier-1, Tier-2 and Tier-3 suppliers. The industry supports 1.83 million skilled jobs, including 300,000 directly in the sector, and anchors localised production worth more than Rs300 billion annually. These are savings the economy would otherwise lose to foreign exchange outflows.
Related news categories: auto-assembler business economic-indicators misc