Karachi, September 17, 2025 – Indus Motor Company Limited on Wednesday expressed concern over the government’s reported plan to liberalize the import of used vehicles.
The proposal under discussion includes extending the permissible age limit of used cars from three to five years and allowing their commercial imports.
According to Indus Motor, such measures could trigger a heavy influx of used imported vehicles into the domestic market. This, the company warned, would undermine the local automotive sector, discourage fresh investment, and potentially lead to deindustrialization of Pakistan’s car industry.
While the broader economy has shown encouraging signs of recovery in FY2025-26 – with easing inflation and lower interest rates – challenges remain. These include external financing needs, policy uncertainty, rupee volatility, and climate risks. The auto industry, being a major contributor to employment and revenue, is seen as particularly vulnerable if policy decisions favor imports over local production.
Indus Motor also highlighted the recent floods that damaged infrastructure and disrupted supply chains across the country. These events have dampened consumer purchasing power and are expected to weigh on vehicle demand in the near term.
The company pointed out that the National Tariff Policy 2025-30 has already paved the way for gradual reduction in customs and regulatory duties on imported vehicles and parts. While this benefits trading businesses, it could hurt local assemblers. Indus Motor urged the government to rationalize duties on CKD (completely knocked down) kits and relax financing conditions to support demand for locally manufactured cars.
Despite the policy and economic headwinds, Indus Motor reaffirmed its commitment to long-term growth through efficiency, cost control, after-sales support, and customer service.