The Government of Pakistan is considering the introduction of a new L6/L7 small vehicle category as part of broader reforms under the draft Auto Industry Development & Export Policy (AIDEP) 2026–31.
According to sources, the proposed segment is designed to address the country’s long-standing affordability gap between three-wheelers and entry-level 660cc cars.
The initiative is primarily aimed at lower-middle-income households, motorcycle users seeking safer transport options, and first-time buyers who are currently unable to afford conventional passenger cars.
Under the proposal, L6/L7 vehicles would consist of compact, lightweight, and fuel-efficient urban cars tailored for short-distance city travel. Officials believe the new category could help expand vehicle ownership while also attracting investment in local manufacturing and strengthening Pakistan’s small-vehicle production ecosystem.
At present, Pakistan’s auto market does not offer a true entry-level four-wheeler, which has left many consumers dependent on motorcycles despite safety and comfort concerns.
If implemented, the new segment could improve access to affordable personal mobility, reduce reliance on two-wheelers, ease urban transport challenges, and increase formal documentation within the transport sector.
Sources emphasized that the proposal is still under review as part of the upcoming auto policy framework, and no final decision has yet been made.
