Automobile industry remains uncompetitive: CCP

Pakistan’s automobile industry remains structurally uncompetitive due to high entry barriers, inconsistent policies, and market distortions, the Competition Commission of Pakistan (CCP) warned in its automobile sector study. These challenges are limiting investment, innovation, and consumer welfare, the report notes. The study highlighted that market contestability - the ease with which new firms can enter and compete — is constrained by restrictive import policies, shifting tariffs, strict localisation requirements, and limited access to technology and financing. Macroeconomic instability, supply chain disruptions, and the absence of a predictable long-term industrial policy have further increased business risks, discouraging new entrants.