The auto industry of Pakistan is completely shattered as the situation further worsened with a decline of nearly 50% sales in the month of July 2019. The current circumstances of the local auto sector have matured in the wrong direction and don’t even seem to be coming back on track anytime soon. Under the prevailing policies of the government, the sales figures are expected to drop even further in the coming months which could be disastrous for the industry which is considered as the backbone of the country. The government of PTI has taken several steps in the recent past, which have turned out to be a nightmare for the auto sector itself and other associated small industries. The previous government introduced Auto Development Policy 2016-21 (ADP), offering several tax-based incentives to the new entrants in the country. It contributed immensely towards bringing huge amounts of foreign investment as several European and Korean auto giants made their way into the country by acquiring Greenfield status to assemble its cars at their respective production plants. However, it didn’t take long for the new government to change things dramatically against the existing as well as new players in the market. It imposed several high amounts of taxes and duties on the automobiles that adversely affected the sales. A majority of new entrants have introduced high-end cars to their line-up and as the prices went up for several reasons, selling them became an uphill task.