Restoration of demand in the auto sector and increase in imports of new cars, sports utility vehicles (SUVs) and pick-ups through new candidates increased the total import bill of fully built-up unit (CBU) vehicles by 193% during the period from July to December 2020.
The import bill reached 94 million in the first half of the fiscal year 2021, up from 20 million to 32 million in the same period last year. According to the Dawn, total imports of these vehicles fell by 55% in the fiscal year 2020 to 99 million due to facilitating the sale of locally assembled cars and the environmentally friendly market.
To achieve its sales targets, the government decided to impose various new rules and regulations to curb the import of used cars to encourage newcomers to the auto sector. Talking to Dawn, a car assembler said that the government had allocated quotas for newcomers to bring brand new fully equipped unit (CBU) cars and other vehicles. Similarly, the interest rate cuts have boosted demand for cars and SUVs as buyers return to the market, with better economic indicators. Another reason for the increase in auto demand was the lifting of cars on cash, which pushed up prices for commodities and now has considerable liquidity.
Meanwhile, All Pakistan Motor Dealers Association (APMDA) HM Shehzad said that the statistics of Pakistan Bureau of Statistics (PBS) covered the CBU imports of both used and new cars which ranged from 600 to 1000cc has more than 90% stake. He said that with the introduction of a large number of imported SUVs and pick-ups, more new imported cars and SUVs would have had a major impact on the CBU’s import figures.
He claimed that between July and December 2020, 10,000 to 12,000 used cars, SUVs, pick-ups, etc. were imported, bringing the total imports for FY20 to 18,500 units, FY 19 to 55,000 units. Much less than the 82,500 units of 18 years. The chairman of APMDA said that after the decision taken by the government in January 2019, the import of used vehicles has shrunk because under its new rules.
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