KARACHI: The import of used cars has been gaining momentum once again despite the government’s resolve to curb this menace that hurts the local auto industry and the national economy.
According to import data, over 21,000 units were imported in FY 2021. However, the import of used vehicles has increased by 46% as over 20,000 units have only been imported during July-February, 2022.
Considering this huge import of used cars, it is projected that more than 30,000 cars will be imported by the end of this financial year, market sources said, adding that around 80% increase has been witnessed in the import of used cars in the past two months. In January this year, some 2,083 units of used cars were imported while the data has shown that 2,778 units were imported in February.
The analysis of the data of used car imports show that over 4,000 units of economy segment have been imported till date with around 21% share in the total imports. Around 7,000 units of the small segment with 35% share have been imported till date while 502 vans (15%), 2874 SUVs (14%), 82 small buses, and 2863 others (14%) were also imported.
At the same time, the prices of used cars are also quite expensive making it really difficult for the customer to afford them in the current recessionary time.
On the other hand, a total 150 units of various models of BMW, Mercedes Benz, Audi, Suzuki and other CBUs were also imported in February.
“This double import of both CBUs and used cars in huge quantities is proving very damaging to the local auto industry,” said S M Ishtiaq, CEO S M Engineering.
He added that these imports are in complete violation of the government’s policy regarding the imports of vehicles in Pakistan.
“This situation needs immediate attention of the policy makers as this would be a double blow to the local auto industry and the national exchequer as well,” reasoned Ishtiaq.
Copyright Business Recorder, 2022