Considering the imports of motor vehicles in the first four months of the current financial year, the numbers have dropped significantly compared to the same time period of the previous financial year. The plunge in imports is approximately 54%, which is substantial.
Considering imports in dollar value, the imports decreased from $245,430 million to $ 108,350 million, a drop of $137,080 million while comparing the five months (July-November) of the current financial year with the same five months of the corresponding year. Such a decrease in imports has led to a decrease in the trade deficit, which is good for the economy. However, this decrease in imports has also adversely affected the businesses of car dealers and the transport sector of Pakistan.
Furthermore, from the period of July to November 2019, the imports of CKD (completely knocked down) and SKD (semi-knocked down) units decreased from $205,041 million to $92,229 million, a decrease of 62.69% compared to the same period in 2018. The imports of CBUs (completely built units) decreased from $36,805 million to $12,588 million, a drop of 67.45% compared to the same period in 2018. Both of these decreases are massive and show skewness towards the reduction of imports.
The imports of buses, trucks, and other heavy-duty vehicles dropped from $10,287 million to $6,932 million, a decrease of 40.94%. This decrease has adversely affected the transportation sector, and buses, trucks, and other heavy-duty vehicles are not being manufactured in large numbers in Pakistan. Moreover, consumers also have less variety of these locally-manufactured vehicles. Commercial vehicles like trucks are important for the industry to expedite the transportation of raw materials and finished goods. Buses are also crucial for people frequently commuting between cities for work, education, or leisure.
The imports of motor cars have seen the second-largest dip compared to the last fiscal year. The decrease is from $26,300 million to $5,553 million, a drop of 77.70%. The imports of motorbikes have also decreased substantially from $218 million to $103 million, a dip of 82.11%. In the short-run, this massive decrease in the import of cars and motorbikes has been detrimental for car dealers. These car dealers pulled in a significant chunk of their total revenues from the sales of imported cars.
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