Pakistan’s auto parts manufacturing sector has welcomed a sharp decline in used vehicle imports, saying recent government policies are helping strengthen local production and support industrial growth.
Industry representatives believe the stricter rules are encouraging buyers to shift toward locally assembled vehicles instead of imported used cars.
According to recent import data for April 2026, only 148 used vehicles entered the country under different schemes. These included 19 vehicles under the gift scheme, 120 under the baggage scheme, and 9 under the transfer of residence scheme.
This marks a significant drop compared to previous years, when monthly imports ranged between 3,500 and 4,000 units.
The Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) said the decline is the result of tighter regulations that reduced misuse of import schemes, which were previously used for commercial import activity.
The association added that the reduction in used vehicle imports has directly increased demand for locally manufactured cars. As a result, domestic car assemblers and auto parts producers have seen higher production levels and improved business activity.
Industry data shows that each locally assembled vehicle uses around Rs. 1.5 million worth of locally produced components, which supports the wider manufacturing ecosystem.
PAAPAM also estimated that imports of used vehicles previously caused annual losses of over Rs. 60 billion to local auto parts manufacturers.
Officials from the association said the shift toward local production is a positive sign for Pakistan’s industrial sector.
They believe stronger demand for locally made vehicles will help create jobs, increase investment, and strengthen the supply chain for auto parts manufacturing.
Experts also note that growth in large-scale manufacturing is an important indicator of economic stability. The ongoing trend is expected to support long-term development in Pakistan’s automotive industry and reduce reliance on imported used vehicles.