Currently, the biggest issue the Pakistan auto industry faces is the scarcity of the US dollar. Due to this problem, the State Bank of Pakistan (SBP) is not issuing LCs to car companies to import CKD kits. Resultantly, the auto industry is at a virtual halt as companies face repeated production shutdowns. But on the other hand, the import of luxury cars, electric vehicles (EVs), and even heavy bikes seem to continue.
In the case of EVs, the government ended Regulatory Duty (RD) on their import in November 2022. After this decision, multiple media reports and economists highlighted that EVs parked in Dubai instantly got import clearance. The experts believed that over 300-400 EVs would be imported in these couple of months.
Import of Luxury Cars and EVs
And a recent tweet by the economist, Ali Khizar, proved this indication right. As per Khizar, “23 Land cruisers and Lexus and 20 EVs – mostly e-trons have been imported in December 2002.” Meanwhile, talking about the bike, he wrote 18 heavy bikes, including BMW Motorrad and Harley-Davidson, were also cleared last month.
“Last but not least, he concluded that over 300 used cars – including Vitz and Vessel were also imported during this period,” he concluded.
CBUs (including luxury cars & bikes) imports in Dec -22
23 Land cruisers and Lexus
20 EVs – mostly E-trons by Premier Motor
18 heavy bikes including BMW Motorrad and Harley-Davidson
Over 300 used cars – including VItz and Vessel
— Ali khizar (@AliKhizar) January 19, 2023
Amid this tough patch for the auto industry and for the country overall, clearing such expensive cars for import makes little or no sense. Because on the one hand, the government is telling the local car assemblers there is no dollar for LCs, while on the other hand, the import of such vehicles continues, leading to only one question, how? and the second question, why?
Hopefully, the situation will improve for the auto industry in the coming days so that production and sales can flow fully. And the SBP and the government need to check their policies regarding this, especially the import of luxury cars.
What do you think about the import of luxury cars in Pakistan despite the tough situation? Please share your thoughts in the comments section.
I can understand the import of few luxury car especially the ICE. Not the electric one with our market state.
What about the car we are exporting ? Aren’t we are assembling and exporting Changan oshan ?
Or was it just a marketing communication for the launch ?
@Waqas
It was a marketing stunt pulled off by corrupt and lying Chinese, who are bleeding Pakistan dry in shape of Thar coal project. By the way, I have seen this Oshan very closely, it looks like a box put together by an inept person.
@Khurram
A marketing stunt that’s what i thought. Changan isn’t sold in Australia and New zealand.
Now about Changan quality i don’t know a lot, but i found it ugly, the only good chinese brand available in the country is Cherry for me.
@Waqas
Agreed, my cousin owns Changan Alsvin since second half of 2021, its underside has got rust on it.