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.