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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

Comments

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samir sardana Apr 10, 2022 11:14pm
There is no dearth of 2nd car cars in North East Asia and North America With oil rates and environmental laws - they are a waste for those nations.Steel rates are at an all time high - and the only option, is to scrap the cars.Many of these nations,do NOT allow scrapping of these cars, in their nation,and have a time limit,to ship them out. Y produce autos,in Pak, at this juncture ? They will NOT,be sold The state will earn more by BCD and CVD, than by import duty on imported auto components.GST on cars made in Pakistan,will be earned only if the cars are sold ! Importing 2nd hand cars is the RIGHT SOLUTION at this time.The car makers in Pakistan, will close down operations, as they cannot even recover, their variable costs. If they shut down - there will be no GST revenues, in any case.dindooohindoo
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Altaf baig Apr 11, 2022 11:20am
@samir sardana, I just read artical related to import of used cars. Brother I must say that this article shows only ONE sided story. What Suzuki , Honda and Toyota is doing is good ? Also tell me when custom duty money is one of the most imported cause of dollar inflow then how it is hearting the Pak economy. I must say that Business Recorder should be not publish such substanderd / one sided or paid contents at the cost of your rapo. Regards, Altaf Baig
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Mumtaz ali shah Apr 11, 2022 01:04pm
Used cars are very good alternate for local cars. Local cars are taking pakistan money abroad. While imported cars are adding heavy taxes to pakistan economy. Govt should immediately allow upto 15 years old vehicles inorder to further save the nation money as well as save our nation from dirt of chingchi rikshaws
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Sami Apr 11, 2022 04:22pm
@Altaf baig, in Simple words Govt. Want Pakistan ka Chohay wala Samosa khawo but bahir ka samosa nh import nh kro.
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Habib Apr 11, 2022 10:31pm
Import of used cars especially small ones should be encouraged. Local auto industry is plundering money
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Salman Apr 12, 2022 02:13am
Make better cars at home to stop the imports. Kachra banao gy tau log import he kerain gy for better features and durability
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Elizar Apr 12, 2022 06:24pm
Imported Car are best value of your money . In our country Pakistan Toyota , Suzuki and Honda are playing very bad role . They are car mafias . They increase price crazily . Even Govt don't think about poor people and their families . In Pakistan no any car have price less then 05 lakh ( even 2nd hand ecxept Mehran ) . Compare to India you have lots of car variety under the price of 05 lakh.
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Zaheer Ahmed Apr 12, 2022 11:11pm
The local industry need no sympathy and pampering because they are producing very low quality and inflated price cars, which are nowhere in the world worth of buying even, If they are competent they should export these cars to uae and Europe,, local produced cars are substandard unsafe and with fake high price.. Same brand cars in India are in better quality and less than half price. Government should open import of 10 yeara old all cars. We need good quality and safe cars, value of our money,, not these monopolised useless low quality honda, toyota, and suzuki car which cannot compete any international standards.
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Usman Ansari Apr 12, 2022 11:21pm
If local cars are so poor quality and no longer represent value for money, why shouldn’t we be able to buy imports? Local cars are horrible and local manufacturers are looting the Pakistani people.
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Aamir Ali Shah Apr 15, 2022 01:12am
...add
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Naveed Apr 15, 2022 11:26am
Local auto industry increasing price and making difficultly to purchase ...
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Fahad Apr 16, 2022 06:06am
Local auto industries just focus on profit rather than quality That's y Pakistani go for used vehicles More Over local manufacturer making fools to it's customers as customers bear more cost than it has in actual job n the name of "Generation"
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