Karachi, November 17, 2023: Pakistan has experienced a significant surge of 186% in car imports during the first four months (July – October) of the current fiscal year 2023-24, according to official data released on Friday by the Pakistan Bureau of Statistics (PBS).
The country imported Completely Built Units (CBU) cars amounting to $67.83 million during this period, compared to $23.72 million in the corresponding months of the previous fiscal year.
The notable increase in car imports is attributed to a relaxation in the foreign payment policy by the State Bank of Pakistan (SBP), facilitating the inflow of vehicles into the country. The total import of CBU motor vehicles, however, recorded a 3% decline, amounting to $87 million during the review period, compared to $89.67 million in the same period of the previous fiscal year.
Conversely, the import of CBU buses, trucks, and other heavy vehicles experienced a substantial decline of 71.39%, dropping to $18.72 million from $65.43 million. The cost of importing CBU motorcycles also reduced by 12.57%.
On the other hand, the import of Completely Knocked Down (CKD) cars witnessed a decline of 41.39%, totaling $208.47 million during the first four months of the current fiscal year. This is in contrast to $355.69 million in the corresponding period of the previous fiscal year. The total import of CKD motor vehicles registered a 45% decline, reaching $279.54 million during July – October 2023-24, compared to $506.88 million in the same period of the previous fiscal year.
The fall in CKD motor vehicle imports can be attributed to several factors. Plant shutdowns of locally assembled motor vehicles played a role in the decline, reflecting disruptions in production. Additionally, the high prices of vehicles and the associated costs of car financing have contributed to a reduced demand for CKD cars in the market.
The surge in CBU car imports indicates a robust demand for fully assembled vehicles, potentially influenced by consumer preferences, availability, and the ease of importing completely built units. The decline in CKD car imports suggests challenges in the local automotive industry, highlighting the impact of various factors on both production and consumer demand.
As the automotive landscape undergoes these shifts, industry analysts anticipate adjustments in market dynamics. The government and relevant stakeholders may consider evaluating policies and measures to address the challenges faced by the local automotive sector and ensure its resilience in the face of changing economic conditions.
The data underscores the importance of monitoring import trends and economic indicators to make informed decisions for sustainable growth in the automotive sector. The coming months will be crucial in assessing the trajectory of car imports and understanding the broader implications for the domestic automotive industry.
