Restrictions on imports that were imposed in May and July of 2022 continued to have a negative impact on the country’s car industry for over a year. Car sales plummeted and there were frequent production shutdowns due to low inventory. However, there is now some hope on the horizon as the State Bank of Pakistan (SBP) has relaxed the restrictions on CKD kits.
As the automotive industry strives to recover, December 2023 marked an important milestone with monthly Completely Knocked Down (CKD) car kit imports exceeding $100 million for the first time since November 2022. This increase indicates a potential turnaround for the struggling car manufacturers in the coming year.
After mobile phone imports, car CKD imports are also picking up ✅✅
First time after November 2022, monthly imports of CKD car kits has crossed $100Mn in a month in december 2023.
2023 was a disasterous year for car manufacturers, 2024 expected to be a recovery year.
— Abdul Rehman (@AbdulRehman0292) January 20, 2024
The automotive industry faced a challenging year in 2023, dealing with supply chain disruptions, chip shortages, and global uncertainties. These difficulties led to a tough year for car manufacturers globally. However, the recent increase in CKD imports indicates a positive shift, suggesting a potential revival in the industry this year.
CKD imports are essential for the automotive sector, enabling manufacturers to assemble vehicles locally, promoting cost-effectiveness and efficiency. The $100 million milestone is not just an accomplishment, but also a symbol of resilience and adaptability in the face of adversity.
Car Sales Saw a 10% Increase Last Month
According to the latest report from the Pakistan Automotive Manufacturers Association (PAMA), there was a 10% month-on-month (MoM) decline in car sales last month, with 5,816 vehicles sold, compared to 6,475 units sold in November 2023.
When comparing year-on-year (YoY) data, there was a significant 66% drop, with car manufacturers only managing to sell 17,012 cars during the corresponding period last year.
In a similar fashion, two-wheeler sales experienced a notable decrease of 7% last month, with 82,362 units sold in Dec’23 compared to 88,493 units in November 2023.
What are your thoughts on the significant increase in CKD imports? Feel free to share your thoughts in the comments section.
