October 2022’s import data from the Pakistan Bureau of Statistics (SBP) shows that in Fiscal Year (FY) 2022-23, Completely Built-Up (CBUs) imports have fallen by 58.48% YoY.
Compared to $215,947 last year, auto-sector imports have fallen down to $89,659. The car and bike categories have seen a decline of 80% and 69% respectively, while the heavy traffic category has seen a decline of 28% in imports.
The breakdown of these imports is as follows:
|Category||July to October 2021 (In Thousand)||July to October 2021 (In Thousand)||Percentage Difference|
|Buses, Trucks & Heavy Vehicles||$215,947||$65,432||-27.9|
Local Car Industry Troubles
During the recent Senate Standing Committee (SSC) meeting last month, the attendees voiced their concerns about the rising car prices, delivery delays, and other pertinent industry-related issues in Pakistan.
According to a briefing from the Engineering Development Board (EDB), the reasons for rising car prices are as follows:
- Rupee-Dollar disparity
- Freight costs
- Input material costs in the local and international markets
- Cost of business
- Import restrictions
EDB also pinned the blame on “improvements in vehicle models” for the price hikes. It bears mentioning that the improvements in are only in a select number of high-end car models.
EDB’s briefing about car prices also suggests that more price hikes are ahead. Toyota Indus Motor Company (IMC) has already increased the prices of some of its cars and more price hikes are expected.