Imports of new and used completely built-up (CBU) cars increased in September 2026, prompting local automotive parts manufacturers to raise concerns about potential business losses, reduced production and job cuts.

Industry data show that new CBU imports increased more than sixfold in September compared with August. Used car imports more than doubled over the same period.

The BYD Atto accounted for the largest share of new vehicle imports, recording its highest monthly import figure to date. Among used vehicles, imports of luxury cars increased, along with those of compact and mini models, particularly the Suzuki Alto, Daihatsu Mira and Toyota Yaris.

Abdur Rehman Aizaz, Chairperson of the Pakistan Association of Automotive Parts & Accessories Manufacturers (PAPAAM), said the increase in imported vehicles posed a challenge for the domestic industry, which comprises approximately 1,200 parts manufacturers.

These companies manufacture seats, glass, doors, bumpers, headlamps, wiring harnesses, tyres, steering wheels and shock absorbers. Aizaz said locally manufactured parts account for up to 65 per cent of the component value of the Toyota Corolla.

CBU cars are imported as fully assembled vehicles and do not incorporate domestically manufactured components. Aizaz said imports could reduce business for local suppliers, lower production volumes and affect the economies of scale required to maintain competitive costs.

The industry estimates that locally manufactured parts account for approximately PKR 1.5 million (US$ 5,400) of the value of each locally assembled car. Based on this estimate, September's imports represent potential displaced demand for local parts worth approximately PKR 7.3 billion.

This figure is an industry estimate rather than a confirmed measure of lost revenue. The actual impact depends on the models imported and whether their buyers would otherwise have purchased locally assembled vehicles.

Aizaz said used vehicle imports provide consumers with a wider choice of vehicles at competitive prices, particularly those with a budget of around PKR 5 million. He added that the implications for employment across the supply chain, including raw material suppliers, component manufacturers and vehicle assemblers, should also be considered.

Lower production volumes can increase per-unit costs, affect competitiveness and discourage investment in machinery, technology and production capacity. These effects can also extend to suppliers of steel, plastics, rubber, glass and electrical components.

Aizaz questioned whether import policy should prioritise the needs of an upper-middle-class buyer seeking a used imported car or those of a factory worker earning PKR 40,000 per month. The increase in imports in September has renewed discussion about how Pakistan can provide consumers with a wider choice of vehicles while supporting domestic vehicle assembly and automotive parts manufacturing.