The Government of Pakistan is considering introducing a new L6/L7 affordable small vehicle category as part of reforms being discussed under the draft New Auto Industry Development & Export Policy (AIDEP) 2026–31.
ProPakistani was informed that the proposed category aims to bridge Pakistan’s long-standing affordability gap between three-wheelers and entry-level 660cc cars.
The proposal targets lower-middle-income households, motorcycle users upgrading to safer transport, and first-time vehicle buyers priced out of conventional cars.
Under the plan, L6/L7 vehicles would be smaller, lightweight, and fuel-efficient urban cars designed for city commuting. Sources said this segment could help expand car ownership while encouraging localized manufacturing and new investment in the country’s small-vehicle ecosystem.
Pakistan’s current car market lacks a true entry-level four-wheel option, which has forced many consumers to rely on motorcycles despite safety concerns.
If approved, the category could support affordable personal mobility, reduced urban congestion risks, expansion of domestic auto assembly, and broader documentation of transport activity.
Sources clarified that the proposal is still under review within the upcoming auto policy framework and no final approval has been issued yet.
