Auto assemblers’ CKD, SKD imports surge 92% to record $2.12 billion in FY26

Pakistan’s imports of semi- and completely knocked-down vehicle kits reached an all-time high of $2.118 billion in FY2025-26, up 92% from $1.101 billion a year earlier, amid strong automobile sales and concerns over limited localisation, Dawn reported. 

Car sales stood at 155,631 units during FY26, while sales of sport utility vehicles, pickups, vans and jeeps totalled 50,814 units.

The previous record for parts and accessories imports by local assemblers was $1.7 billion in FY2021-22, when car sales reached 234,180 units and sales of SUVs, jeeps and vans stood at 45,087 units.

Pakistan’s total CKD and SKD import bill has exceeded $6 billion between FY2021-22 and FY2025-26.

The industry is awaiting a new automotive policy after the previous framework expired on June 30, along with tax and duty changes introduced through the 2026-27 federal budget. Auto sales are expected to remain strong in the coming months.

Established assemblers claim localisation levels of between 50% and 70%, but vendors maintain that locally manufactured content in several new models is below 50%.

Some newer Korean assemblers claim localisation of 35% to 40%, while Chinese companies have not disclosed their localisation levels.

Under the previous automotive policy, Korean and Chinese original equipment manufacturers were allowed to operate under a 25% tariff regime. However, some parts importers claimed that these companies had neither developed new local vendors nor sourced sufficient parts from existing manufacturers.