Imports of car assembly kits surge 123pc
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Pakistan Auto Market Sees Rising Imports,Increased Competition in Late 2025
Table of Contents
Published November 23rd,2025,in Dawn
overview: A resurgent Auto Market
Pakistan’s automotive market is experiencing a period of recovery and growth,fueled by increased consumer demand,new model launches,and a surge in both CBU (Completely Built-Up) and KD (Knocked Down) imports. Data from the Pakistan Bureau of Statistics (PBS) indicates a meaningful increase in imports related to vehicle assembly and finished vehicles.
Import Figures: KD vs. CBU
Imports of semi and completely knocked-down (SKD/CKD) kits, used by local assemblers, rose by 123% year-on-year (YoY) to $628 million in the first four months of Fiscal Year 2026 (4MFY26), according to PBS data. This substantial increase suggests a renewed commitment to local vehicle assembly. However, assemblers note that KD imports are more foreign exchange intensive per vehicle compared to CBU imports.
Concurrently, imports of completely built-up (CBU) new and used cars have also risen, further contributing to overall import volumes. this dual increase highlights a consumer appetite for both locally assembled and imported vehicles.
| Import Category | 4MFY26 Value (USD) | YoY Change |
|---|---|---|
| SKD/CKD Kits | $628 million | +123% |
| CBU (New & Used Cars) | Data not specified in source | Data not specified in source |
Factors Driving Market growth
Several factors are contributing to the auto market’s recovery:
- Recovery from Downturn: The market is rebounding from a prolonged period of decline, returning to more normal demand levels.
- New Model Introductions: both established automakers and new entrants are launching new models, expanding consumer choices and stimulating sales.
- Electric Vehicle Imports: New entrants are increasingly offering electric vehicles (evs) as CBUs,benefiting from a lower duty regime. Dawn news reported on the growing trend of EV imports.
- Used Vehicle Imports: A rise in used vehicle imports is also contributing to increased overall volumes.
- Auto Leasing: Rising auto leasing, notably for small, locally assembled, and used cars, is being driven by low interest rates, boosting consumer confidence.
Competition Intensifies
The increased activity in the auto market is leading to heightened competition among assemblers.All manufacturers are actively working to secure a larger share of the market,particularly considering the growing number of options available to consumers.