Compared to the same period last year, the first half of the current fiscal year has seen a 684 percent increase in the importation of old cars.
Compared to the around 2,100 used automobiles imported in the fiscal year 2022–2023; an exponential increase of almost 16,500 units of used cars were imported between July and December 2023.
The significant rise in used automobile imports was ascribed by Abdul Rehman Aizaz, Chairman of the Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM), to the government budget for the fiscal year 2023–2024 eliminating regulatory tariffs on used cars up to 1800cc.
Although this legislative reform was meant to revitalize the automotive industry, Mr. Aizaz emphasized that it has had a negative effect on the local auto industry.
Local vendors run the prospect of having to close their doors after suffering an estimated loss of PKR 36 billion.
Upon analyzing the different car classes, it was discovered that the import of smaller, more affordable, and compact models had surged dramatically, amounting to about 9,900 units.
Furthermore, there was an increase in the importation of commercial vehicles, SUVs, vans, and luxury cars totaling almost 6,600 units.
Because of the healthy rivalry this fosters, numerous local assemblers are compelled to enhance the characteristics of their variations.
The client is the ultimate authority in today’s quickly evolving technology world, and local customers—especially those who reside in first-tier cities—tend to favor foreign cars.
The rise in imports of used cars presents both opportunities and challenges for policymakers and the automotive sector. Thorough policy reevaluation is necessary to guarantee local industry support and sustainable growth.
