KARACHI: Pakistan’s car imports have increased sharply during the first two months of fiscal year 2026-27, with the combined value of new and used motor car imports rising by 36% year-on-year to $81.4 million in July and August.
According to Pakistan Bureau of Statistics (PBS) data, motor car imports were worth around $59 million during the same period last year. The latest increase comes as new automotive entrants expand imports ahead of planned local assembly, while used vehicles continue to enter Pakistan through permitted import schemes.
Car Imports Rise Despite Changes To Used Vehicle Rules
The increase in imports comes after the government abolished the Personal Baggage Scheme for used vehicle imports in January 2026.
The government also introduced mandatory pre-shipment inspections for vehicles imported under the Gift and Transfer of Residence schemes.
Despite these changes, used vehicles continued to enter the country in significant numbers.
According to figures reported by Dawn, around 1,938 used vehicles were imported in July, followed by 1,445 vehicles in August. The Gift Scheme accounted for the majority of these reported imports.
Chinese EVs And New Energy Vehicles Add To Import Activity
Another major development in Pakistan’s automobile market is the growing arrival of new energy vehicles (NEVs).
Industry representatives quoted in the latest reports said leading Chinese companies were importing around 1,500 to 2,000 new energy vehicles per month as new entrants prepare for local assembly.
The increase reflects the growing presence of Chinese automotive brands and electric vehicles in Pakistan’s market.
Some new entrants are importing completely built-up vehicles before establishing local assembly operations, adding to the country’s overall car import bill.
Used Car Imports Reached Around 3,200 Units
Used vehicle imports also showed a significant increase after May.
Reported figures show that only 48 used vehicles arrived in May. The number increased to 843 in June, before reaching 1,938 in July.
Imports then declined to 1,445 vehicles in August.
Together, around 3,200 used vehicles were imported during July and August, according to figures cited by Dawn.
What Does This Mean For Pakistan’s Auto Market?
The rise in imported vehicles comes at a time when Pakistan’s overall automobile market is also experiencing stronger activity.
Passenger car sales reached 30,933 units during July-August 2026, compared with 17,192 units during the same period last year, representing an increase of about 79.9%.
Car production also increased by around 36.2%, reaching 30,574 units compared with 22,446 units during the corresponding period last year, according to Pakistan Automotive Manufacturers Association (PAMA) data reported by the Associated Press of Pakistan.
This means Pakistan’s auto market is seeing growth in both locally produced vehicles and imported cars.
Why Are Imported Cars Increasing?
Several factors are contributing to the changing automobile market.
One factor is the arrival of new automotive brands, particularly Chinese manufacturers, that are introducing new models before moving toward local assembly.
The growing availability of electric and other new-energy vehicles is another factor.
At the same time, used vehicles continue to enter Pakistan through the remaining permitted import channels despite the removal of the Personal Baggage route.
Concerns For Local Auto Parts Manufacturers
The increase in completely built-up vehicle imports has also raised concerns among local auto-parts manufacturers.
Industry representatives argue that imported vehicles can reduce demand for locally produced components because completely built-up vehicles arrive with their parts already installed.
According to figures cited by Dawn, several locally assembled vehicles have more than 50% local content by value, with locally produced components contributing around Rs1.5 million per vehicle.
Industry representatives have therefore raised concerns about the possible impact of rising CBU imports on local parts manufacturing and employment.
What Does This Mean For Car Buyers?
For consumers, increased imports could mean more choices in the Pakistani automobile market, particularly as more Chinese brands and electric vehicles enter the country.
However, buyers considering imported vehicles should look beyond the purchase price.
Availability of spare parts, after-sales service, warranty coverage, resale value, vehicle history and availability of charging infrastructure for EVs can all be important factors when comparing imported vehicles.
FAQs
How much did Pakistan’s car imports increase in July and August 2026?
The value of new and used motor car imports increased by 36% to $81.4 million, compared with around $59 million during the same period last year.
How many used cars were imported in July and August?
Around 3,200 used vehicles were reported as imported during the two months, with 1,938 in July and 1,445 in August.
Are Chinese electric cars increasing in Pakistan?
Industry figures cited in recent reporting indicate that leading Chinese companies were importing around 1,500 to 2,000 new energy vehicles per month as they prepare for local assembly.
Has Pakistan completely stopped used car imports?
No. The Personal Baggage route was abolished, but used vehicles continue to enter Pakistan through other permitted schemes, including the Gift and Transfer of Residence routes, subject to applicable requirements.
Are local car sales also increasing?
Yes. Passenger car sales rose to 30,933 units during July-August 2026, up about 79.9% from the same period a year earlier.
Conclusion
Pakistan’s automobile market is going through a notable period of change.
Car import values rose 36% to $81.4 million during July and August 2026, while Chinese new-energy vehicles and other new entrants continue to expand their presence.
At the same time, local car sales and production have also recorded significant growth.
The coming months will show how the growing presence of imported vehicles, particularly EVs and other new-energy models, affects Pakistan’s local automobile industry and consumer choices.
