Pareesa Afreen 
Nov 23, 2025
Pakistan’s automotive market is undergoing a sharp rebound, driven by surging demand for both locally assembled and used imported vehicles.
According to recent government data, semi-knocked-down (SKD) and completely knocked-down (CKD) imports have seen a significant uptick, while completely built-up (CBU) shipments have also seen strong growth, a reflection of renewed momentum across the sector.
SKD/CKD imports, which form the backbone of local vehicle assembly, have surged by 123% year-on-year to $628 million during the first four months of FY2026.
In comparison, CBU imports of new and used vehicles increased 31% to rise from $86 million to $113 million during the same period last year.
The longer-term picture suggests that the dominance of local assembly is still evident. Pakistan imported close to $6 billion worth of SKD/CKD kits against less than $1.5 billion in CBU vehicles between FY2021 and the first four months of FY2026.
Moreover, Japanese brands currently have the highest level of local content, which ranges between 35% and 73%, while for Korean and Chinese models, it lies between 10% and 35%. Major variations are apparent in the localisation efforts of different manufacturers.
Industry analysts attributed the market's expansion to a combination of returning consumer confidence, wider model availability, and a steady influx of electric vehicles taking advantage of lower-duty incentives.
Higher auto financing, corresponding to lower interest rates, also helped the rise in sales, particularly in the small-car and used-vehicle segments.
