You’ve heard the rumors: “Cars are getting cheaper,” “5-year imports are open,” “EVs will take over soon.”
But walk into any dealership today and you’ll hear the real sound of the market: crickets.
So what’s really going on?
To decode the madness, auto guru Suneel Munj sat down with renowned automotive analyst and economist Ali Khizar for a brutally honest podcast and let’s just say, they didn’t hold back.
Here’s everything that’ll make you go, “Wait… what?!”
Here is the complete Podcast:
6 Months of Silence and Counting
For half a year, Pakistan’s car market has been as lifeless as a parked hybrid with a dead battery.
Prices? Sky-high. Sales? Frozen. Consumer confidence? Missing in action.
And now, a new SRO says we can import 5-year-old used cars for commercial purposes. Sounds great, right?
Except… no one actually knows how it’ll work. Even the policymakers look confused.
“They opened imports just to please the IMF,” says Khizar. “But they haven’t decided what duties will apply. So no one’s daring to import anything.”
In other words, it’s a policy without a plan.
IMF: The Puppet Master or the Party Pooper?
The IMF is like that overbearing landlord who wants you to “fix the house” but only lets you use half your budget.
According to Khizar, the IMF is still stuck in a 1990s mindset — telling developing nations to cut tariffs and open markets, while the rest of the world (the U.S., China, and Europe) is doing the exact opposite to protect their industries.
“They’re asking Pakistan to drop tariffs just when everyone else is raising theirs,” he says. “We’re always late to the global party.”
So, while others are building cars, we’re still building “import policies.”
The Auto Industry’s Identity Crisis
Pakistan’s auto sector is in a tug of war built locally or imported freely?
Two policies are twisting the knife:
- National Tariff Policy (NTP) reduces duty gaps between local and imported cars to just 15% in three years.
- Commercial Used-Car Imports lets old imports back in (under IMF pressure).
Together, they’re a double-edged sword: they’ll make cars cheaper for consumers now, but could destroy local manufacturing later.
“We nurtured this industry since 2016,” says Suneel. “It finally started bearing fruit — and now we’re cutting down the tree.”
Enters the Dragon: China’s Auto Domination
Here’s the plot twist, China is the new Japan in Pakistan’s car scene.
Every new player — Haval, Changan, BYD, MG — is rolling in from China.
Meanwhile, Japanese brands (Toyota, Suzuki, Honda) are holding on to their pride — and losing ground.
Why? Because Chinese cars are simply cheaper.
In fact, importing a complete Chinese car (CBU) is now cheaper than assembling it locally (CKD).
“China controls the supply chain,” says Khizar. “They make it, price it, and can wipe competitors out overnight.”
So while we debate “policy,” China is quietly parking its cars in our driveways and our economy.
The Big Question: Should We Build or Just Buy?
Suneel hits the practical point:
“If it costs $150 million to set up a plant, and importing is cheaper — why bother?”
Khizar counters:
“Because without local manufacturing, we’ll become slaves to imports. China will dump cars, kill our plants, and set the prices forever.”
It’s the classic dilemma:
- Short-term convenience vs long-term control.
- Cheaper cars now vs a dying industry later.
There’s no easy answer but one thing’s clear: localization is the only way to survive.
EVs, Hybrids, and Everything in Between
Welcome to the alphabet soup of modern mobility:
EV, PHEV, REEV, NEV… What do they even mean anymore?
Here’s the cheat sheet:
- EV (Electric Vehicle): 100% battery-powered
- PHEV (Plug-in Hybrid): battery + petrol combo
- REEV (Range Extender EV): electric wheels, tiny engine generator
Now the fun part: PHEVs are winning.
Why? Because EVs are taxed 142%, while PHEVs pay just 42%.
“So guess what? Next year, every new launch will be a plug-in hybrid,” says Khizar.
BYD, Changan, even Haval — they’re all gearing up to ride this wave.
The EV Dream vs Harsh Reality
We love the idea of EVs clean, quiet, and futuristic until we try charging one.
Suneel, who reviewed the BYD Seal, tells it straight:
“At home, it cost me Rs. 10/km. On the highway, Rs. 30/km. Why? Because public chargers cost Rs. 150 per unit if they even work.”
The truth?
- Pakistan’s EV ecosystem is still in its toddler phase.
- Few charging stations.
- No nationwide network.
- And definitely no plan B if the charger’s “temporarily unavailable.”
So, for now plug-in hybrids are the real sweet spot between dream and reality.
“Sasti Import”? More Like “Fancy Headline.”
That trending “cheap import” news you saw? Pure clickbait.
The fine print says:
Yes, 5-year-old cars can be imported…
But with 40% extra duty which makes them more expensive than before.
“It’s just paperwork for IMF satisfaction,” says Khizar. “No one will actually use it.”
So, no you’re not getting a used Corolla from Japan for half price anytime soon.
The Road Ahead: Winners, Losers, and Wildcards
Let’s look into the crystal ball:
- Short term: Consumers win more options, more competition.
- Medium-term: Local manufacturers must localize quickly or risk vanishing.
- Long term: Plug-in hybrids dominate until the charging infrastructure matures.
- Real talk: The government’s short-term revenue obsession could choke long-term growth.
And the biggest wildcard? China.
They’re playing chess while everyone else is still learning checkers.
The Real Advice: Don’t Follow the Crowd
Suneel closes with a line every buyer should print out:
“Don’t buy a hybrid because I drive one. Don’t buy an EV because your neighbor did. Buy what fits your life.”
- Live in an apartment? Forget plug-ins.
- Drive mainly in the city? EV might work.
- Travel highways often? Stick to petrol or hybrids for now
It’s not about hype, it’s about habits.
The car market isn’t dead, it’s evolving. Chaotic, yes, but that’s how revolutions start.
For decades, Pakistanis begged for choice. Now we have it: local vs. imported, petrol vs. electric, Japanese vs. Chinese.
The question isn’t “what’s available?” anymore. It’s “what’s sustainable?”
And if you listen to this podcast closely, one truth roars louder than any engine:
The road ahead belongs to the bold — not the confused.
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