Used car import business booming in Pakistan

Last year Pakistanis imported no less than 80,000 cars into the country, which is evident enough to make a statement that Pakistan’s used car import business is thriving.

Arshad Mehmood Awan, the Chairman of Car Exporter Association of Pakistan (CEAFP), says that more than 80,000 vehicles were imported in 2017 alone by the association. He added that due to the huge demand, this number will continue to grow in the upcoming months. But still there was a shortfall of vehicles in the market, which we could have eradicated if the government had made import friendly rules and regulations.

It is to be noted here that the perception that due to importing cars the local market is in disarray, which is totally wrong. For the last seven years, the local manufacturers have increased their production by 107 percent with shipping 285248 units annually. However, there is still a big gap in demand, and that is 450000 units per year, and we are filling this gap as best as we can, he further asserted. IMC Toyota said that it will further enhance its production of vehicles in the near future, which is indeed a positive step.

The used car imports increased by more than 70% in just one year  from 2016 to the end of 2017. Around 38,676 units were imported in 2016 and that number has crossed 80,000 in value, the chairman said. The main reason behind strict import policy was to decrease the trade deficit. Another reason behind this, according to Arshad Mehmood, is that government thinks that local auto manufacturers suffer when car imports increase.

Pakistan is primarily a used car market because local car manufacturers despite putting full efforts are unable to meet the needs of local consumers. Another reason is the long delivery time, which is not acceptable by the people, as they cannot wait for months to get their hands on cars. Furthermore, people also import used cars from other countries to quench the thirst of the car with good features.