Auto parts makers welcome sharp decline in used car imports

The Pakistan Association of Automotive Parts and Accessories Manufacturers has welcomed the sharp reduction in used vehicle imports, saying the government’s policy measures are supporting industrialisation and local manufacturing.

In a statement, the association said imports of used vehicles had dropped significantly after authorities tightened regulations on schemes that were previously being misused for commercial imports under facilities meant for overseas Pakistanis.

According to import data for April 2026, only 148 used vehicles were imported under various schemes, including 19 under the gift scheme, 120 under the baggage scheme and nine under the transfer of residence scheme.

The association noted that monthly imports of used vehicles had previously ranged between 3,500 and 4,000 units last year.

Paapam said the reduction in imports had shifted consumer demand toward locally manufactured vehicles, resulting in higher production by domestic assemblers and auto parts manufacturers.

The association stated that every locally assembled vehicle used local parts worth an average of ₨1.5 million.

According to Paapam, imports of used vehicles had caused annual revenue losses exceeding ₨60 billion for local auto parts manufacturers.

The association added that increased domestic production was contributing positively to large-scale manufacturing growth, which remains a key indicator of economic performance.