Friday, December 12 2025

Auto sales fall 11% in November
Pakistan's automotive market experienced a sharp monthly slowdown in November, with total car sales plummeting 11% to 15,442 units from October's 17,333, according to the Pakistan Automotive Manufacturers Association (PAMA). Despite the monthly dip, year-on-year figures paint a brighter picture, up 592% from November 2024's 10,163 units, buoyed by lower interest rates and moderating inflation that are gradually thawing consumer demand. According to data compiled by Topline Securities, the strong annual growth was supported by easing inflation, lower interest rates, and the arrival of new entrants that strengthened overall market competitiveness. While the MoM decline in auto volumes was primarily driven by customers delaying vehicle deliveries to next year to benefit from new-year registration, AHL viewed. Moreover, an 11% contraction in PSMC's sales also added to the overall decline, driven by lower volumes in models that have been phased out, including Ravi, Bolan, Every, and Wagon R.
Related news categories: auto-assembler business economic-indicators misc

Wednesday, December 10 2025

ECC bans baggage car imports, approves circular debt management plan
The government on Tuesday banned the import of used cars under the baggage scheme and tightened restrictions for the other two schemes, including a minimum three-year stay abroad, restricting competition for foreign firms in breach of commitments made to the International Monetary Fund (IMF). The Economic Coordination Committee (ECC) of the Cabinet, which tightened the conditions for car imports, also allowed the Power Division to add Rs522 billion to the flow of circular debt under the newly approved Circular Debt Management Plan 2025-26. The Rs522 billion addition in the flow will be offset using taxpayers' money to keep the overall circular debt at last year's level. Finance Minister Muhammad Aurangzeb chaired the ECC meeting. According to another approval by the ECC, Rs2.5 billion of taxpayers' money will be used to pay pensions and medical bills of Pakistan International Airlines (PIA) employees. The Rs2.5 billion is over and above the Rs31.7 billion that the government has already budgeted to pay interest on PIA's legacy loans.
Related news categories: auto-assembler business economic-indicators misc

Friday, December 05 2025

Govt decides to regulate used car imports
After months of serious pressure by local automobile manufacturers, the government has decided to regulate used car imports as the local auto industry sounded alarms over 120,000 imported vehicles within a year, which had pushed the local industry to the verge of collapse. The decision was taken here on Thursday during a high-level meeting chaired by Special Assistant to the Prime Minister on Industries and Production, Haroon Akhtar Khan, with the delegation of the auto industry. The participants of the meeting were informed that the Prime Minister of Pakistan has directed all the relevant quarters, including the Ministry of Industries and Production, to devise a new framework on the subject of used car imports to protect local manufacturing units. According to the officials of the Engineering Development Board (EDB), the share of used car imports in Pakistan has jumped from 7.5 percent in 2020-23 to 20 percent in 2025, which is posing a serious threat to local manufacturing, investment, and employment.
Related news categories: auto-assembler business economic-indicators misc

Tuesday, December 02 2025

Auto Industry claims Rs50b loss from car imports
Pakistan's auto industry has expressed its dismay over the rising import of used cars, which is said to have caused a loss of Rs50 billion during the last one year. Pakistan is the only auto manufacturing country in Asia where used vehicles swallow a significant part of the market, accounting for nearly 25% of domestic sales between December 2024 and December 2025. In comparison, the share of used cars remains negligible in regional peers: India has virtually zero used car inflows, Vietnam has 0.3% used car share and Thailand has 1.2%. Industry analysts say the contrast underscores a clear policy divergence. While regional economies have restricted used car imports to safeguard their automotive value chains, Pakistan has charted an opposite course, especially after Notification 1895 issued by the Ministry of Commerce on September 30, 2025, which allowed imports of up to five-year-old vehicles.
Related news categories: auto-assembler business economic-indicators misc

Wednesday, November 26 2025

Import of used cars: Continued policy of encouraging may destabilise automotive sector
Pakistan’s auto manufacturing industry — a sector that contributes 2 percent to the national GDP, sustains 2.5 million direct jobs, and supports nearly 5 million livelihoods across its vast vendor and dealership network — is warning that the continued policy of encouraging import of used cars may destabilise one of the country’s most important industrial pillars. In FY25 alone, the automotive sector paid Rs 700 billion in taxes, amounting to about 6 percent of the total national revenue, and has attracted an estimated USD 5 billion in foreign direct investment (FDI) over the past two decades. Through localization efforts, the industry also saves about USD 150 million annually in import substitution. Despite these contributions, the sector finds itself at the centre of the government’s latest tax and tariff overhaul, shaped by Pakistan’s commitment to the International Monetary Fund (IMF).
Related news categories: auto-assembler business economic-indicators misc