Used car imports fall sharply

Used car imports into Pakistan have declined after the government scrapped the baggage scheme in January and made pre-shipment inspections compulsory for gifted and resident-transferred vehicles, according to Dawn. Indus Motor Company, in its annual report for FY26, put used vehicle imports at roughly 38,000 units, down from 42,000 units the year before. The company expects the same policy steps to keep reducing such inflows, which would help local plants use more of their capacity.

Used vehicles still make up 19 per cent of total sales, based on figures from the Pakistan Automotive Manufacturers Association, and the sector is running below half of its installed capacity. Indus Motor also pointed to 31 brands and over 100 locally assembled models, saying better utilisation would add value, create jobs and deepen localisation. APCDIA Patron-in-Chief Mian Shoaib Ahmed told Dawn that no units have arrived since the baggage ban, while new-car imports are climbing.

Pakistan Bureau of Statistics data show completely built-up vehicle imports rose 36 per cent to $377.7 million in FY26, from $278m a year earlier, as new entrants brought in new models, particularly electric vehicles, ahead of shifting toward local assembly. In July, CBU imports eased to $57m from $70m in June, though they were $33m in July 2025.