Used Car Business in Pakistan Is Growing Fast

Previous year no less than eighty thousand cars were imported in Pakistan, which is enough proof to state that Pakistan’s used cars import business is flourishing.

While conversing with a local media outlet Arshad Mehmood Awan—Chairman of Car Exporter Association of Pakistan (CEAFP) said that despite two hundred and three hundred duties and other taxes on the second-hand cars still the industry is booming and developing. He further told that there were eighty thousand automobiles imported in the year 2017 for the local commuters, however, still, there was a decrease of vehicles in the market, which could have been erased if the government has made much friendlier rules and regulations for import.

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It is important to be mentioned that the perception that owing to the importing of vehicles the local industry is in dismay, is an entirely wrong concept. For the past seven years, the local makers have increased their production by one hundred and seven percent with shipping around 285,248 units per year. Still, there is a huge gap in the demand, and that is of 450,000 units annually. Mr Awan informed that they are trying to fill the gap as best as they could.

IMC Toyota said that in near future they would further be increasing the production of their vehicles which is indeed a good initiative and would affect positively.

The Chairman said that the earnings per share and the growth of the local makers also have risen, which clearly indicates that there is no negative implication of the import of used carts on the local automobile industry, instead it brings variety to the local market and as well as competition.

It is important to mention that as per the stats of the FBR (Federal Revenue Board) used car import business is the second biggest contributor in GDP. It has almost contributed Rs 121.7 billion in the span of two years. Moreover, it is also worth mentioning that the used car import business contributed Rs 63 billion in GDP last year.

Pakistan is primarily dependent on used car market as the local car manufacturers despite putting their utmost efforts are unable to meet the needs of the local consumers. Another reason is the long delivery time, which is again not appreciated by many people. Also, people go for the imported cars for fulfilling their desire of cars with good features.

More Read: Used car imports in Pakistan: Unclear policy creates confusion for importers