BYD Opposes Import of Used Cars in Pakistan

BYD, a Chinese automotive importer specializing in new energy vehicles (NEV) in Pakistan, has voiced its opposition to the government’s proposal regarding the import of five-year-old used vehicles. The company argues that this measure could destabilize domestic manufacturers, harm the environment, and drive up the demand for foreign exchange needed to procure expensive petroleum oil.

During a recent media briefing held at their newly inaugurated ‘experience center’ in Karachi, BYD’s Vice President for Strategy and Sales, Danish Khaliq, stated that allowing the import of five-year-old used cars would make them available in Pakistan at significantly reduced prices due to depreciation allowances of 1% per month from their original value.

Impact on Local Market

Khaliq emphasized that this price advantage could be detrimental to the local market, particularly affecting the burgeoning NEV sector and potentially reducing sales for established Japanese automakers in the traditional combustion engine segment.

Proposed Government Measures

He suggested that any government consideration to reduce import duties on completely built-up units (CBUs) in the upcoming budget for 2025-26 should exclusively target NEVs. He cautioned that equating internal combustion engine (ICE) vehicles with NEVs in terms of duty reductions could lead to unfavorable outcomes for consumers.

  • Furthermore, Khaliq proposed that reduced duties in the automotive sector should be reserved for original equipment manufacturers (OEMs) demonstrating a commitment to investing in Pakistan.
  • These incentives should align with Pakistan’s broader objectives of industrial development and ensuring a sustainable transportation sector as the economy grows.

Khaliq further explained that importing older, oil-powered vehicles could exacerbate environmental issues, hinder the achievement of the United Nations’ Sustainable Development Goals, and negatively impact job creation.

Currently, Pakistan permits the import of used cars up to three years old.

BYD recently introduced two new electric vehicle models in the Pakistani market.

Mega Motor Company, BYD’s local partner, is constructing an NEV manufacturing facility in Gharo, Sindh, which is projected to begin operations next year with a production capacity of 25,000 vehicles annually, according to Khaliq.