Industry raises concerns as imported used cars account for 20% of market share in Pakistan

Pakistan’s domestic automotive sector is raising concerns over the rapid increase in used car imports, as new data from the Engineering Development Board (EDB) and industry associations shows that the market share of imported used cars has surged from an average of 7.5% between 2020 and 2023 to 20% in 2025.

Auto industry claims that rising trend of used cars imports could severely undermine local manufacturing, jobs, and the country’s compliance with international financial standards.

According to the Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM), the local auto parts industry is losing an estimated PKR 48 billion to PKR 60 billion annually due to reduced demand for locally manufactured components.

If current trends continue, experts warn that the share of imported used cars could rise to 50%, meaning half of all cars sold in Pakistan could be used imports. This would drastically affect domestic assembly lines and shrink local production capacity.

Each imported vehicle displaces around PKR 1.5 million worth of locally produced auto parts, experts say. This is having a detrimental effect on small and medium-sized enterprises (SMEs) that supply the auto sector, leading to idle capacity, financial strain, and potential closures.

The impact on jobs is also significant. The auto parts manufacturing sector directly employs around 300,000 workers and supports an additional two million indirectly—making it the largest manufacturing sub-sector in Pakistan. Industry officials call for structural reforms to protect local manufacturing and safeguard jobs.