In Pakistan, the local automobile industry is in the developing stage. As many advancements have been done but that is not comparable to the international market. If we take a look at the last few years, the auto industry in Pakistan is growing very fast. In 2019, the government announced the SRO for used imported cars which lead to a remarkable difference in a local car sale. Now the used car can be imported in many ways as such by gift scheme, transfer of residence, personal baggage.
The financial budget of the local is also increased in 2019-2020. This happened due to increased taxes on locally manufactured vehicles.
The government imposed federal excise duty (FED) on all vehicles in the year of 2019-2020. In the meantime, the money devaluation occurred, and the increased price of the dollar unstable the sales of local cars in Pakistan. However, automobile companies engaged in different promotions to stable the sales of cars and attract customers. If the comparison is done between the local car sales in the current year and previous years the situation is quite stable but the use of imported car sales is been low. Japanese cars are mostly imported because of advanced technology and availability at a low price.
The government has declared seven safety standards to be installed in locally manufacturing cars. By doing this government is ensuring the safety measures in local cars to compete with international technology cars. Ministry of science and technology has taken initiative to make all the local cars safe for drivers and as well as for passengers. And these safety measures are checked in all locally manufactured cars in Pakistan. The followings are the seven safety standards that the government has fixed.
2. High-quality brakes.
4. High-quality headlights.
5. High-quality wiper.
6. Lane assistance.
7. Parking brakes.
From the above-given safety standard, it is expected that rates of cars can get high. Because automakers will increase the prices of the car for installing all these features in a car. But it is confirmed from the ministry of science and technology that these features should be installed in cars without changing the price. So that new features are available at current prices. It is a good initiative taken by the government to ensure the safety of passengers and the driver.
In the last two years, in the Pakistan automobile industry, new automakers are entering and competing with the current market. In doing so these new auto manufacturers are offering cars at very low prices to compare the sales of their car with well-known automobile companies. These cars are not only at low prices but also with advanced features. Now people can buy new cars at the cheapest rate and modern features.
In Pakistan, local cars grow by the decline in used imported cars. The presence of no advanced features in local cars is a big reason for low sales. Most of the local automakers are pricing their cars at very high rates. By decreasing the prices, installing advanced features, and announcing promotions, the sales of local cars can be increased.