Friday, August 22 2025

$131b regional auto trade at risk
Pakistan stands on the edge of a $131 billion regional automobile trade corridor, where even a 5% share could yield $6.5 billion in annual exports — 70 times higher than current levels. With its strategic geography and a vendor base already validated by leading Japanese, Korean and European automakers, Pakistan has the ingredients to become a significant player. Yet, a new report warns that abrupt tariff changes and the normalisation of used-car imports threaten to derail the progress made by the country's auto-parts ecosystem. Monsoon travel packages The report by the Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) highlights that Pakistan's auto-parts ecosystem has been built painstakingly over decades. It now consists of more than 1,200 Tier-1, Tier-2 and Tier-3 suppliers. The industry supports 1.83 million skilled jobs, including 300,000 directly in the sector, and anchors localised production worth more than Rs300 billion annually. These are savings the economy would otherwise lose to foreign exchange outflows.
Related news categories: auto-assembler business economic-indicators misc

Thursday, August 21 2025

Support pledged for auto sector
The government is taking steps to bolster the country’s industrial base and has called upon the auto sector to become more competitive, stated Haroon Akhtar, the Special Assistant to the Prime Minister (SAPM) on Industries and Production. Addressing the Auto Parts Summit 2025, organised by the Pakistan Association of Automotive Parts and Accessories Manufacturers (Paapam), Mr Akhtar outlined a vision for a thriving domestic automotive industry. “The new tariff policy coupled with a new industrial policy and regulatory reforms, along with the plan to revive certain sick industries such as the steel mills, will prove that the future of Pakistan’s automotive industry is bright,” he said. He assured local manufacturers that the government would stand by them, adding, “But we want you to be competitive, and we will help you.”
Related news categories: auto-assembler business economic-indicators misc

Monday, August 18 2025

Faceless clearance lifts vehicle imports, not revenues
The import of used vehicles jumped by nearly 41 per cent in the second half of FY25 following the introduction of faceless customs clearance, though revenue growth remained marginal, indicating limited fiscal gains despite higher volumes. Between Dec 16, 2024 and June 30, 2025, a total of 25,347 vehicles were imported under the new system compared to 17,958 units cleared during June 1 to Dec 15, 2024, under the old regime. Revenue collection in the post-faceless period stood at Rs62.94bn, barely above the Rs62.17bn collected earlier, reflecting an increase of just 1.22pc. The government allows imports of used cars up to three years old and other vehicles up to five years old under three schemes for overseas Pakistanis: personal baggage, transfer of residence, and gift. In the FY25 budget, commercial imports of used vehicles outside these schemes were permitted but subjected to higher duties and taxes.
Related news categories: auto-assembler business economic-indicators misc

Wednesday, August 13 2025

Auto sales see annual growth amidst monthly decline
After a 43pc surge during FY25, the new fiscal year FY26 began on a positive note, with sales of cars, light commercial vehicles (LCVs), pickups, and jeeps rising 28pc year-on-year in July to 11,034 units. However, sales were down 49pc month-on-month, largely due to the high base effect of June. Data released by the Pakistan Automotive Manufacturers Association (PAMA) showed significant momentum in the electric vehicle (EV) segment. The newly launched Honda ICON e EV scooter led the way, with production and sales at 313 and 303 units, respectively. United, traditionally a petrol bike manufacturer, also reported EV-bike production and sales of 229 and 270 units in July 2025, up from 88 and 74 units in July 2024. In the four-wheeler segment, combined sales of Honda Civic/City, Suzuki Swift, and Toyota Corolla/Yaris/Cross rose to 1,143, 522, and 2,418 units in July 2025, compared to 790, 502, and 1,106 units a year earlier — an increase of 45pc, 4pc, and 119pc, respectively.
Related news categories: auto-assembler business economic-indicators misc

Wednesday, August 06 2025

New car levy to power EV revolution
After imposing up to three per cent tax on gross sale value of conventional local and imported vehicles, the government approved a five-year subsidy scheme on Tuesday for the rollout of 116,000 electric bikes and 3,170 electric rickshaws/loaders, with an estimated cost of around Rs100bn. The scheme is part of efforts to encourage the adoption of electric vehicles (EVs) in Pakistan, reduce oil imports, and foster environmental sustainability. Prime Minister Shehbaz Sharif is expected to launch the initiative on Aug 14 formally. The decision was made at a meeting of the Economic Coordination Committee (ECC) of the Cabinet, which also discussed the New Electric Vehicle Adoption Levy (NEVAL). The levy is expected to generate Rs122bn, which will not only fund the subsidy scheme but also meet a key condition of the $1.4bn Resilience and Sustainability Facility (RSF) from the International Monetary Fund (IMF).
Related news categories: auto-assembler business economic-indicators misc