Local automakers voice concerns as imports of used cars surge in Sept

ISLAMABAD: Imports of used cars surged in September after easing of regulations, inviting criticism from local manufacturers while importers claim that the move will bring competition in the auto sector. After a brief decline due to the government abolishing the Pers­onal Baggage Scheme and applying restrictions to control misuse of used car schemes for overseas Pakistanis, imports of used cars have started surging again. In the month of September, a total of 2,276 vehicles were imported under the Gift Scheme as the strict restrictions under the Baggage Scheme continue, according to data from the Commerce Ministry. The figures show that in May, only 48 used cars were imported mainly through the baggage scheme. However, the situation started to change from June onwards. In June, a total of 843 vehicles were imported, including 806 under the Gift Scheme.

The figure reached 1,938 in July, with 1,876 cars under the Gift Scheme. August saw a total of 1,445 vehicle imports, while 2,276 vehicles were imported in September, with 2,238 under the Gift Scheme. A senior executive of the auto industry noted that the reduction in duties on completely built units (CBUs) by 20-25 per cent in the 2026-27 budget has reduced the import cost. “We have reports that a one-year restriction on transfer of ownership is not being implemented in some cities, due to which this business is flourishing again, but at the cost of the domestic auto industry which consists of 13 assemblers and over 300 auto parts manufacturers,” the executive added. Auto parts vendors expressed their concerns too, claiming that auto production had finally begun to show an increase after a gap of three years, which was also contributing to Pakistan’s growth in the large-scale manufacturing (LSM) sector . “Locally…