The federal government is preparing a major revival plan for the Car Industry in Pakistan. The plan is part of the draft Auto Policy 2026–31.
The policy aims to boost production, increase exports, and support electric vehicle adoption. It is designed to rebuild the Car Industry over the next five years.
Officials have set an ambitious target of 500,000 cars annually by 2031. This is a major increase compared to recent production levels.
The Car Industry had previously faced a sharp decline. Production dropped to around 56,000 units in FY2022-23. It had earlier peaked near 300,000 units in FY22.
The government says the new policy is focused on reversing this downturn. It aims to restore manufacturing strength in the sector.
Another key target is export growth. The Car Industry is expected to generate $1 billion in exports under the new plan.
This shift is important for a sector that has mostly focused on domestic demand. Officials believe exports can strengthen long-term stability.
Electric vehicle adoption is also a major part of the roadmap. The policy sets a target for New Energy Vehicles to reach 30 percent of total sales by 2031.
NEVs include electric and hybrid cars. This move is expected to modernize the Car Industry and reduce fuel dependency.
To support this transition, the government plans to install 3,000 EV charging stations nationwide. This will help improve infrastructure for electric vehicles.
The Car Industry policy also includes the agriculture sector. The government aims to produce 100,000 units annually for farm machinery.
This step is expected to improve mechanization and boost agricultural productivity across the country.
Officials say the new Auto Policy will help rebuild the Car Industry after years of decline. It focuses on growth, exports, and sustainability.
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Experts believe the plan could significantly transform the Car Industry if fully implemented. They say success will depend on strong execution and investment support.
