End of comfort for auto giants

The year 2025 finally delivered a long-awaited wave of locally assembled vehicles in Pakistan, spanning hybrids, SUVs, pickups, and electric models, following a series of government policy interventions aimed at revitalising the auto sector. While the expanded lineup has brought greater choice, improved technology, and renewed competition, the benefits have so far remained concentrated in the higher-income segment. Affordable options for middle- and lower-income buyers remain largely absent, raising concerns that the current progress has yet to meaningfully trickle down to the broader segments of society, limiting the inclusive impact of the industry's recovery. According to Mashood Ali Khan, an auto industry expert, the sector operated in a paradoxical environment throughout the year. "While sales recovered and consumer interest returned, deep structural weaknesses persisted," he said, citing policy uncertainty, high taxation, rising used car imports, and weak localisation as major constraints.