ISLAMABAD – Pakistan Suzuki Motor Company (PSMC) has raised serious concerns over the potential easing of restrictions on used vehicle imports, warning that such a move could severely harm the domestic auto industry, reduce employment, and undermine environmental goals.
In a recent high-level meeting with government officials, PSMC executives highlighted that used cars already account for nearly 25% of the market share, while local vehicle production is operating at just 40% capacity. They cautioned that any increase in used car imports would further destabilize the auto sector, putting over 2.5 million jobs at risk.
Suzuki emphasized that the influx of used vehicles, often lacking modern safety and emissions standards, could flood the market with substandard and unsafe options, directly affecting consumer welfare. The company also warned that such imports could derail the country’s climate objectives by increasing the number of older, high-emission vehicles on the roads.
The automaker urged the government to reconsider any proposals under the upcoming Import Policy Order and the National Tariff Policy 2025–30 that would facilitate large-scale import of used vehicles. They specifically called for stricter control over imports in the small engine segments (below 1,300 cc), which are particularly vulnerable due to favorable duty structures.
PSMC also expressed concern that sudden policy changes could discourage investment in the local manufacturing sector, hinder localization efforts, and destabilize supply chains and dealership networks across the country.
Industry representatives called on the government to provide long-term policy consistency and a supportive framework to foster growth in local manufacturing and vehicle exports, rather than opening the floodgates to used vehicle imports which, they argue, would reverse years of progress in the domestic auto sector.
