The All Pakistan Motor Dealers Association has warned that a handful of local car assemblers completely control the market. It destroys competition and makes vehicles unaffordable for common citizens.
Pakistani car buyers continue to face artificially high prices because of a monopoly in the local automobile industry. According to the chief of the All Pakistan Motor Dealers Association (APMDA), a small group of existing car companies completely control the local supply. They dictate market rates without facing any real competition.
The association highlighted that even though new global brands entered Pakistan under past government auto policies, the market remains heavily dominated by a few traditional assemblers. This lack of an open playing field means that car prices have stayed completely out of reach for middle-class families, even during periods when the local currency remains stable.
Key Issues Hitting Local Car Buyers
The association pointed out several structural issues that are directly damaging the interests of ordinary consumers across the country:
- Local companies have failed to achieve full “localization.” It means they still import expensive core components from abroad instead of manufacturing them inside Pakistan.
- Because buyers have very limited choices. Assemblers frequently raise retail prices without any solid justification, passing their operational inefficiencies onto the public.
- Due to controlled production numbers, buyers are often forced to pay unfair hidden premiums (“Own Money”) just to get their vehicles delivered on time.
Call for Policy Reforms and Open Imports
The APMDA chief strongly urged the federal government to break this corporate monopoly by updating the national automotive framework. Dealership representatives suggested that the government should relax heavy duties on imported used cars. It will give consumers immediate alternative options.
Market experts agree that true competition will only come when international manufacturers are forced to compete openly with imported vehicles. Breaking the current monopoly is the only way to drive down prices, improve vehicle build quality, and ensure modern safety features are standard in every local car.
