Summary of the Dawn Article: Pakistan Auto Industry Concerns over Used Vehicle Imports (December 5th, 2025)
This Dawn article details concerns raised by local vehicle assemblers in Pakistan regarding the increasing import of used vehicles, and the government’s response. Here’s a breakdown of the key points:
The Problem:
* Surge in Used Vehicle Imports: Nearly 22,000 used vehicles entered Pakistan between july and November 2025 via the baggage scheme, representing 25% of the market share. This is projected to exceed 50,000 units for the year.
* Unfair Competition: Used vehicles are imported with considerably lower duties and taxes due to outdated customs valuations, creating an unfair advantage over locally manufactured cars.
* Safety & Quality Concerns: Imported used vehicles are not currently being checked for compliance with UN safety regulations, unlike locally manufactured cars. This poses a risk to consumers and the public.
* Impact on Local Industry: The influx of used vehicles is hindering local production (currently running at 35% capacity), investment, job creation, and technology transfer.
* Outdated Justification: The original rationale for allowing used imports (lack of affordable new car options) is no longer valid, as there are now 16 new players offering modern vehicles with financing options.
Government Response & promises:
* Commitment to a Fair Playing Field: The government assures local manufacturers of its commitment to a competitive environment.
* valuation Review: The Federal Board of Revenue (FBR) and Customs Valuation will address undervalued customs assessments. Fixed valuations and Import Trade Prices (ITPs) for used vehicles will be updated and reviewed annually.
* Stricter Regulations: New legislation and regulatory frameworks will be introduced to ensure all imported vehicles meet strict safety and environmental standards. Only compliant vehicles will be allowed entry.
* Pre-Shipment Inspections: Safety and quality standards of imported vehicles will be verified through pre-shipment inspections.
* Commercial import Rules: For commercial imports, three years of overseas residency and one year of registration under the owner’s name will remain mandatory.
* Prioritizing local Manufacturing: The Ministry of Industries will continue to prioritize local manufacturing, job creation, and a progressive auto policy.
Key Industry Representatives’ Statements:
* nadeem Malik (Master Changan Motors): Highlighted the duty/tax imbalance.
* Babar S. Khan (Lucky Motor Corporation): Emphasized the lack of safety compliance checks on imported vehicles.
* Sohail Nawaz (Hyundai Nishat Motors): Pointed out the low capacity utilization of local plants.
* Aqib Zulfiqar (NexGen Auto): Stressed the economic benefits of local manufacturing.
* Mian Ali Hameed (Sazgar Haval): Argued the original justification for used imports is obsolete.
the article portrays a situation where the local auto industry is seeking government intervention to level the playing field and protect its investments, citing safety concerns and economic disadvantages caused by the increasing influx of used vehicle imports.
