Imports of vehicle assembly kits in Pakistan have surged 123% compared to last year, driving increased activity in the local auto market, official data shows.
According to the Pakistan Bureau of Statistics (PBS), local car manufacturers imported $62.8 million worth of assembly kits (SKD/CKD) during the first four months of the current fiscal year, up from the previous year.
Meanwhile, imports of fully built new and used vehicles (CBUs) also rose by 31%, reaching $11.3 million compared to $8.6 million during the same period last year.
Industry observers say both new locally assembled cars and used vehicles are drawing strong interest from consumers, reflecting a broader shift in market demand.
The Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) recently raised concerns during the Pakistan Auto Parts Show (PAPS) 2025, warning that the growth of used car imports could threaten $5 billion in investment, 1,200 factories, and 2.5 million jobs in the local automotive sector. The association described the use of informal payment channels such as hundi in the used car trade as damaging to the national economy.
Local car makers have echoed these concerns, noting that the market share of used cars has jumped to 25–30%, up from less than 10% a few years ago.
Analysts suggest that while the surge in assembly kit imports indicates growth for the domestic auto industry, rising demand for imported used vehicles could undermine long-term investment and local manufacturing incentives.
