Imports of new and used completely built-up (CBU) cars rose sharply in September 2026, prompting local auto parts manufacturers to warn of lost business, reduced production and job cuts.
Industry data show new CBU imports rose more than sixfold to 2,407 units in September from 391 in August. Used car imports more than doubled to 2,454 units from 1,185. Combined imports totalled 4,861 units for the month.
The BYD ATTO led new vehicle imports with more than 1,500 units, its highest monthly figure to date. Among used vehicles, imports of luxury cars increased, along with compact and mini models, notably the Suzuki Alto, Daihatsu Mira and Toyota Yaris.
Abdur Rehman Aizaz, Chairperson of the Pakistan Association of Automotive Parts & Accessories Manufacturers (PAPAAM), said the rising volume of imported vehicles threatens a domestic industry of about 1,200 parts manufacturers.
These firms produce seats, glass, doors, bumpers, headlamps, wiring harnesses, tyres, steering wheels and shock absorbers. He said locally made parts account for up to 65 per cent of the component value in the Toyota Corolla.
CBU cars arrive fully built and do not use domestically manufactured components. Aizaz said each imported vehicle therefore represents lost business for local suppliers, lowering production volumes and weakening the economies of scale needed to keep costs competitive.
The industry estimates that local parts make up about Rs1.5 million of the value of each locally assembled car. On that basis, September’s 4,861 imports represent potential displaced parts demand of around Rs7.3 billion.
The figure is an industry estimate, not confirmed lost revenue, and the actual impact depends on which models were imported and whether those buyers would otherwise have purchased locally assembled cars.
Aizaz acknowledged that used imports give consumers wider choice at competitive prices, particularly buyers able to spend around Rs5 million. He said this should be weighed against the effect on employment across the supply chain, from raw material suppliers and component makers to assemblers.
Lower production volumes can raise per-unit costs, reduce competitiveness and discourage investment in machinery, technology and capacity. The effects can also reach suppliers of steel, plastics, rubber, glass and electrical components.
Aizaz questioned whether import policy should favour an upper-middle-class buyer seeking a used imported car or a factory worker earning Rs40,000 a month. The September surge has renewed debate over how Pakistan can widen vehicle choice for consumers while protecting its local assembly and parts manufacturing base.