Imported used cars cost local auto-parts sector up to Rs60 billion annually, says PAAPAM

Pakistan’s auto-parts manufacturers have warned that imported used cars are causing annual losses of Rs48–60 billion to the local industry, undermining domestic production and employment.

According to the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM), every imported used vehicle replaces roughly Rs1.5 million worth of locally produced components. The association said this loss directly reduces economic activity, tax revenue, and jobs.

“The government’s localisation and ‘Make in Pakistan’ vision cannot succeed if such large-scale displacement of domestic value addition continues unchecked,” said PAAPAM Senior Vice Chairman Shehryar Qadir.

He said that the domestic vendor base — the backbone of Pakistan’s auto industry — is under pressure as imported vehicles bypass local supply chains entirely. “Declining orders lead to idle capacity, financial distress, and eventual shutdowns of small and medium enterprises,” he added.

PAAPAM noted that the automotive parts industry employs around 300,000 people directly and over 2 million indirectly, more than any other manufacturing sub-sector. However, it warned that continued liberalisation of used car imports could force many vendors to close, reversing years of progress in localisation, skill development, and technology transfer.

Qadir said the government’s employment goals can only be achieved by strengthening manufacturing. “Countries that have built their auto industries did so by nurturing domestic production while gradually integrating with global markets,” he added.