Used vehicle import unlikely to dent local sales: Sazgar

As the government moves to allow commercial imports of used vehicles, the Pakistan Automotive Manufacturers Association (PAMA) has expressed concern over the potential impact on local vehicle assembly. However, a leading Chinese assembler says it expects minimal disruption to its sales. PAMA Director-General Abdul Waheed Khan warned that the decision to relax restrictions on used car imports could flood the market with old vehicles, risking environmental harm and undermining local manufacturing. He also criticised the lack of infrastructure to enforce environmental standards and said the 40pc regulatory duty (RD) on used imports might be undermined by invoicing and valuation disputes. In contrast, Sazgar Engineering Works Ltd, one of Pakistan’s prominent four-wheeler assemblers, told Topline Securities in a corporate briefing that the 40pc RD on used cars up to five years old would mainly affect sedan imports and would not significantly impact its sales. The company expects this move to ease import pressures.