In a major move to regulate vehicle safety, the government has finalized a new legal structure for the automobile sector. The “Motor Vehicles Industry Development Bill, 2025” has already received cabinet approval and is slated to be tabled in the National Assembly during the upcoming session.
The bill mandates safety, environmental, and quality standards for two-, three-, and four-wheel vehicles, amid rising concerns about manufacturing faults and consumer risk.
According to officials at the Engineering Development Board (EDB), the bill requires all assemblers and importers to hold licenses, be properly incorporated, and meet capital thresholds set by the federal government.
The legislation proposes firm penalties: a fine of up to Rs2 million or three years in jail for companies failing to recall or correct defective vehicles. The bill also allows the government to name and shame violators.
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Secretary Saif Anjum highlighted that enforcement against automakers had previously been weak. He added that even long-established foreign firms had not always complied with safety obligations.
The auto industry currently produces around 1.8 million vehicles each year, most of which are motorcycles and rickshaws. Cars, pickups, and trucks make up the remainder.
Other key aspects of the bill include mandatory certification, provisions for after-sales support, and protection of buyers from post-booking price changes. Vehicle inspections may also be outsourced to improve efficiency.
The EDB will lead the regulatory process, with help from provincial governments.