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

Dawn reported that used car imports jumped in September after regulations were eased, with 2,276 vehicles arriving, according to Commerce Ministry data. Of these, 2,238 came in under the Gift Scheme. Monthly arrivals had been only 48 in May, before rising from June onward.

Local manufacturers have criticised the trend. Abdul Rehman Aizaz, chairman of the Pakistan Association of Automotive Parts and Accessories Manufacturers, said the imports cost local parts makers Rs3.4 billion in production and called the used car trade unregulated. Importers led by Mian Shaoib Ahmed argue that the business is legal and will bring more competition to the auto sector.

A senior auto industry executive linked the rise to a 20 to 25 per cent cut in duties on completely built units in the 2026-27 budget, which lowered import costs. An Engineering Development Board notification dated Sep 30 relaxed the criteria for used vehicle importers by removing the minimum capital requirement, while inspections will now run through PSQCA instead of the EDB.