Pakistan plans low-cost small cars under new L6/L7 auto policy

Sources said the government is reviewing the introduction of a new L6/L7 vehicle category under the Auto Industry Development and Export Policy 2026-31. The plan aims to reduce the price gap between three-wheelers and entry-level 660cc cars.

Officials believe the move could help ordinary citizens buy safer vehicles at lower prices. The proposed cars are expected to be smaller, lighter, and more fuel-efficient than regular vehicles.

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According to sources, these vehicles will mainly be designed for daily travel in urban areas. Authorities say the cars may become a practical option for short-distance commuting inside cities.

Government officials said the proposal could encourage motorcycle users to shift toward safer transportation. First-time car buyers may also get a lower-cost option under the new category.

Experts said Pakistan’s current auto market has very limited affordable four-wheel vehicles. Due to this shortage, many people are forced to rely on motorcycles despite safety concerns.

Industry analysts believe the new category could support the growth of cheap personal transport in the country. The policy may also create investment opportunities in local car manufacturing and small vehicle production.

Officials clarified that the L6/L7 category proposal is still under discussion. No final approval or official decision has yet been announced by the government.

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Experts are calling the proposal an important possible development for Pakistan’s auto sector. Many people are now waiting to see whether the government formally approves the plan.

If approved, the new category could change the low-cost transport market in Pakistan. Affordable small cars may attract many motorcycle users looking for safer travel options.