After the auto industry in Pakistan has seen a dramatic rise in vehicle imports, leaving stakeholders debating the reasons behind this surge. Some attribute the spike to the influx of used cars, while others highlight the growing popularity of new vehicles, particularly electric vehicles (EVs), hybrids, and plug-in hybrids.
CBU & CKD Imports on Rise
Recent data from the Pakistan Bureau of Statistics (PBS) reveals that imports of completely built-up (CBU) cars increased to $124 million in the first half of FY25 (IHFY25), compared to $108 million during the same period last year. The entry of high-end hybrid vehicles and EVs, introduced by assemblers to gauge consumer interest, has been a significant factor in this growth.
The import of completely knocked-down (CKD) and semi-knocked-down (SKD) kits for vehicle assembly has also seen an uptick, rising from $379 million to $402 million during the same timeframe. This increase reflects strong sales activity in recent months and signals continued demand as 2025 progresses.
Key Drivers
Several factors have fuelled this demand. A relatively low interest rate of 13% has made auto financing more accessible, while attractive financing offers and declining inflation have further encouraged buyers. Additionally, the significant rise in remittances has indirectly boosted car sales, as funds often directed into real estate create a ripple effect across other sectors, including automotive.
Low Localisation Levels – Criticism
Heavy vehicle imports have also seen significant growth, with CKD/SKD kit imports for buses and trucks climbing to $156 million, up from $83 million. The Sindh government has further fueled demand with plans to add 8,000 electric buses to its fleet under the Peoples Bus Service initiative.
This surge in vehicle imports reflects the evolving dynamics of Pakistan’s auto market, driven by changing consumer preferences and government initiatives. The coming months will reveal whether this growth will translate into long-term stability and innovation within the industry.
