Pakistan’s soaring used car imports pose a “serious” threat to local manufacturers, according to Indus Motor Co, the local joint venture of Toyota Motor Corp, reports Bloomberg.
The roughly 40,000 to 45,000 imported vehicles comprised almost one-third of the local automobile market in the 12 months through June, compared with less than 10 per cent in 2023, Indus Chief Executive Officer Ali Asghar Jamali said on Friday.
Commenting in a statement, Jamali was sanguine about the outlook for domestic vehicle demand due to declines in interest rates and inflation alongside the adoption of hybrid and electric vehicles. Sales of passenger cars and light commercial vehicles surged 43 per cent to nearly 148,000 units in the year through June, he added, citing data from the Pakistan Automotive Manufacturers Association.
Steps to ease restrictions on used car imports are reportedly part of several conditions imposed by the International Monetary Fund, as part of a broader $7 billion loan programme to help Pakistan recover from an economic crisis.
Local reports indicate the government is still considering stemming the influx of vehicles with levies that officials argue comply with IMF requirements.