Car imports rise 36 percent in July-August, PBS data shows

Imports of new and used cars into Pakistan rose 36 percent in July and August 2026, reaching $81.4 million compared with $59 million in the same period a year earlier, according to data from the Pakistan Bureau of Statistics. The two-month total covers newly imported and used motor cars.

The rise came in the first two months of fiscal year 2026-27 as new market entrants expanded vehicle imports ahead of local assembly. At the same time, auto parts manufacturers say used cars are still coming into the country through the gift scheme, months after the government abolished the baggage scheme for used car imports in January.

The government also made pre-shipment inspections mandatory for vehicles imported under the gift and transfer of residence schemes. Indus Motor Company said in its fiscal 2026 annual report that used vehicle imports fell to around 38,000 units in FY26 from 42,000 units in FY25 after the baggage scheme was abolished.

Former Pakistan Association of Automotive Parts and Accessories Manufacturers chairman Aamir Allawala said vendors believe used car dealers are still managing imports through different schemes. He said 48 used vehicles were imported in May, 843 in June, 1,938 in July and 1,445 in August, with the gift scheme accounting for most imports from June through August.

Allawala said leading Chinese companies are importing between 1,500 and 2,000 new energy vehicles per month, while total used car imports were around 3,200 units in July and August combined. He said several locally assembled vehicles had more than 50 percent local content by value, averaging around Rs1.5 million per vehicle.

Allawala said completely built-up vehicle imports, whether new or used, reduce demand for locally produced auto parts and affect employment in the vendor industry. He stressed that job creation and preservation of Pakistan's industrial base should remain government priorities.