ISLAMABAD: Pakistan has recorded a significant and unprecedented rise in the import of automobile parts and assembly kits, reflecting a notable acceleration in activity across the domestic auto sector.
Fresh data released by the Pakistan Bureau of Statistics indicates that imports of SKD and CKD assembly kits used by local automobile manufacturers have risen by 123% compared to the previous year, highlighting a strong resurgence in production-related demand.
During just the first four months of the current fiscal year, the value of assembly kit imports reached an impressive $628 million, underscoring the scale of the increase.
In parallel, imports of completely built units (CBU)—which include both new and used vehicles—also experienced robust growth of 31%, climbing to $113 million, compared to $86 million recorded during the same period last year.
At the Pakistan Auto Parts Show 2025, the Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) issued a strong warning regarding the continued rise in used-car imports.
The association cautioned that the growing inflow of used vehicles could jeopardize nearly $5 billion in industry investment, threaten the stability of 1,200 manufacturing units, and put approximately 2.5 million jobs at serious risk.
PAAPAM also emphasized that the import mechanism for used cars frequently enables the involvement of undocumented, irregular, and illegal financial channels, including hawala and hundi, which collectively undermine the national economy.
Local automobile assemblers reinforced these concerns, noting that the market share of used vehicles has surged dramatically to 25–30%, whereas only a few years ago it stood at less than 10%, posing a major challenge to the sustainability of the domestic industry.
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