Karachi, September 17, 2024 – Pakistan has witnessed a significant surge in car imports during the first two months of the fiscal year 2024-25, with total imports valued at $48 million.
This marks a notable 53% increase compared to the $31 million worth of cars imported during the same period last year, according to data from the Pakistan Bureau of Statistics (PBS).
The rise in car imports is primarily attributed to the surge in Completely Built Unit (CBU) vehicle imports, which saw an 85% increase during the first two months (July–August) of FY25. CBU imports amounted to $60 million, a substantial increase from the $39 million recorded during the corresponding period of the previous fiscal year. CBU vehicles refer to fully assembled cars that are imported rather than being assembled locally. The increasing demand for imported vehicles in Pakistan suggests a growing preference for foreign-manufactured cars, despite challenges such as fluctuating exchange rates and ongoing import restrictions in certain categories.
Furthermore, the data highlights a significant increase in the imports of buses, trucks, and other commercial vehicles. Imports in this category recorded a 63% rise, reaching $12 million in July and August of FY25, compared to $7.32 million during the same period last year. The increased demand for these vehicles could indicate growing infrastructure and transportation needs in the country, particularly as development projects and economic activities pick up pace after a period of slower growth.
However, in contrast to the rising imports of cars and commercial vehicles, motorcycle imports saw a sharp decline. During the first two months of FY25, motorcycle imports decreased by 43%, falling to $238,000 compared to $419,000 in the same period of FY24. This decline may reflect a shift in consumer preferences or a tightening of the motorcycle market due to economic factors, such as inflation and lower disposable incomes among the middle and lower-income groups.
The import trends observed in the first two months of FY25 suggest a mixed outlook for Pakistan’s automotive market. While demand for high-end imported vehicles appears to be on the rise, the decline in motorcycle imports and economic constraints indicate that the market remains sensitive to broader economic conditions. Nonetheless, the overall surge in vehicle imports highlights the increasing demand for mobility solutions in the country, driven by both individual consumers and businesses.
