Used car imports have once again come under the radar of the local auto industry & its stakeholders. Auto sector vendors said they are facing tough challenges due to low production and a surge in the import of used cars, and urged the government to ensure policy consistency, stating that the supply and demand crisis in the local auto industry has led to frequent plant shutdowns for original equipment manufacturers (OEMs), negatively impacting vendors overall.
The suppliers voiced concerns about their substantial expenditures being underutilized in the upgrading of their facilities for comprehensive localization, which includes acquiring the equipment and tools needed to produce metal and non-metal products locally. They went on to say that because of low capacity volumes and supply chain interruptions, the factories were currently running at less than 60–70% capacity, meaning that the large investments made in the newest infrastructure and technology were underutilized.
Related: PAMA Says Used Cars Fill the Market Vacated by Locally Assembled Vehicles
According to vendors, from July to January in the current fiscal year FY24, more than 21,874 used cars were imported, whereas in the same period last year, only 2,990 used cars were imported.
It is interesting to note that the local vendor industry has once again failed to see that the import of old automobiles presents an opportunity to maintain their operations and make use of their investment and technology. Local vendors have an amazing opportunity to supply components that are highly sought after by JDM customers by producing parts linked to famous imports like the Daihatsu Mira, Nissan Dayz, Toyota Vitz & Aqua, among others.
Related: Local Assemblers and Their Allergy to Used Car Imports
Strangely, however, the vendors prefer to biblically stick to serving the local assemblers & their obsolete offerings despite sales plummeting to 20-year-old levels with no improvement in sight. Perhaps it’s about time they stop lamenting the limited import of used cars and explore ways to utilize their investments made in the newest infrastructure and technology.
A computer animation professional with over 23 years of industry experience having served in leading organizations, TV channels & production facilities in Pakistan. An avid car enthusiast and petrolhead with an affection to deliver quality content to help shape opinions. Formerly written for PakWheels as well as major publications including Dawn. Founder of CarSpiritPK.com
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