Pakistan’s automotive sector is witnessing simultaneous growth in locally assembled cars and imported used vehicles, according to data from the Pakistan Bureau of Statistics (PBS).
SKD/CKD imports for assembly jumped 123 per cent year-on-year to $628 million in the first four months of FY2026. CBU vehicle imports, including new and used cars, rose 31 per cent to $113 million from $86 million in the same period last year.
From FY2021 to 4MFY26, SKD/CKD imports totaled $6 billion, compared with less than $1.5 billion in CBU vehicle imports. Japanese locally assembled vehicles have 35-73 per cent local content, while Korean and Chinese models range between 10-35 per cent.
The market is being driven by recovering consumer demand, expanded model options, and the introduction of electric vehicles under a lower-duty regime. Rising auto leasing, supported by low interest rates, has further boosted sales of small, used, and locally assembled vehicles.
Both used and locally assembled vehicles are seeing strong demand, reflecting an overall expansion in the automotive market.
