LAHORE – Local automakers witnessed a slight improvement in their sales in the month of February 2024, but, on the other hand, the imports of used cars have witnessed over 600 per cent increase in the same month.
“The growth in the sales of the local auto industry, which has been under pressure since July 2022, after the gap of 19 months is being nullified by the heavy surge in the imports of used cars,” said Aamir Allawala, Chief Executive Officer, Tecno Auto Glass Limited.
As many as 3213 units were imported in February 2024 alone, against 396 units imported in the same month in the FY 2023, amounting to a staggering 713 per cent increase.
“Improved agri-income from better cotton crop and buying ahead of elections were the key triggers behind the sales pick-up in Jan-Feb 2024, but this cannot be sustained amid a huge influx of used cars being imported into the country,” reasoned Allawala.
He added that the ray of hope for the local auto industry in the 3rd Quarter of the Financial Year 2023-24 could not stay for long, as the imports of used cars have been continuously increasing, which is evident from the last nine months of the current financial year. He said that a boost in economic activity will provide the much-awaited recovery in demand growth for the local auto industry, only if the newly formed government works towards curtailing the imports of used cars.
Due to increasing imports of used cars into the country, their share has already increased to 30 per cent in the current Financial Year 23-24, up from 4 per cent in the entire Financial Year 22-23.
Data show that car sales in the first nine months (July-Mar) of the ongoing fiscal year (FY 23-24) recorded at 59,699 units, down 41 per cent YoY, compared to 101,426 units sold in the same period last year.
