Pakistan car imports rose sharply in the first two months of fiscal year 2026-27, with imports of new and used vehicles increasing as new automakers expanded shipments ahead of local assembly and auto vendors raised concerns over continued used car imports.
According to Pakistan Bureau of Statistics (PBS) data, imports of motor cars, including new and used vehicles, increased 36 percent to $81.4 million in July and August 2026, compared with $59 million during the same period last year.
The latest figures point to a renewed increase in car imports in Pakistan, even as the government has introduced measures aimed at restricting some channels used to bring second-hand vehicles into the country.
Pakistan Car Imports Increase Despite Used Vehicle Restrictions
The rise in vehicle imports comes after the government abolished the baggage scheme for used car imports in January and introduced mandatory pre-shipment inspections for vehicles imported under the gift and transfer of residence schemes.
The policy changes were intended to tighten controls over used car imports in Pakistan.
Indus Motor Company said in its FY26 annual report that used vehicle imports fell to around 38,000 units in FY26, from 42,000 units in FY25 following the abolition of the baggage scheme.
However, industry representatives say used vehicles continue to enter Pakistan through other available import schemes.
Used Car Imports Remain a Concern for Auto Vendors
Former Pakistan Association of Automotive Parts and Accessories Manufacturers Chairman Aamir Allawala said auto vendors believed used car dealers were still managing imports through different schemes.
According to Allawala, 48 used vehicles were imported in May, followed by 843 in June, 1,938 in July and 1,445 in August.
He said the gift scheme accounted for most used vehicle imports in June, July and August.
The figures have added to concerns within Pakistan’s auto parts industry, where vendors argue that a sustained increase in completely built-up vehicle imports could reduce demand for locally manufactured components.
Chinese EV Imports Add to Vehicle Inflows
Allawala said leading Chinese companies were importing between 1,500 and 2,000 new energy vehicles per month, while used car imports totaled around 3,200 units in July and August combined.
The increase in Chinese electric vehicle imports comes as new entrants continue to establish a presence in Pakistan’s automotive market ahead of plans for local assembly.
Allawala also highlighted the level of localisation achieved by some locally assembled vehicles. He said several vehicles had more than 50 percent local content by value, with the average local content amounting to around Rs. 1.5 million per vehicle.
Local Auto Industry Warns of Job Impact
Allawala said imports of completely built-up vehicles, whether new or used, were reducing demand for parts produced by Pakistan’s local auto vendors.
He warned that lower demand for locally manufactured components could affect employment across the automotive vendor industry, particularly if imported vehicles continue to gain market share.
The issue also comes as Pakistan seeks to expand local manufacturing and increase the domestic value added in its automotive sector.
Allawala stressed that job creation and preservation of Pakistan’s industrial base should remain government priorities while the country manages vehicle imports and encourages local assembly.
For consumers, the latest Pakistan car import data for FY2026-27 points to a changing automotive market, with traditional local manufacturers facing competition from imported vehicles and new energy vehicles while the government continues to balance consumer choice, import controls and the development of domestic auto manufacturing.
