24 Jun, 2024

Restrictions on import of used cars relaxed

Restrictions on import of used cars relaxed

Restrictions on import of used cars relaxed

ISLAMABAD: The Ministry of Commerce made revisions to the Import Policy 2022 on Thursday, easing restrictions on the import of used and unregistered vehicles.

According to the updated policy, the government now permits the importation of used cars with a mileage of up to 2,000 kilometers, contrasting with the previous regulation which restricted imports to vehicles with a maximum mileage of 500 kilometers.

Under the revised import policy, vehicles with mileage not exceeding 2,000 kilometers will be classified as “new,” as outlined in the ministry’s notification.

It’s noteworthy that imports significantly impact the country’s economy, primarily because payments are predominantly made in foreign currency, affecting foreign exchange reserves.

Previous administrations, including caretaker setups and the Pakistan Muslim League-Nawaz (PML-N)-led Pakistan Democratic Movement (PDM) coalition government, had imposed stringent restrictions on car imports to safeguard dwindling foreign exchange reserves.

In February of this year, the State Bank of Pakistan (SBP) relaxed regulations concerning advance payments for imports, permitting authorized dealers to make full advance payments without prior approval.

Earlier reports from The News, citing data from the Pakistan Automotive Manufacturers Association (PAMA), indicated a 30% increase in car sales in January compared to the

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Retail prices stabilizing as used sales growth returns

Consumer demand, speed of sales and transactions in the used car market all rallied in February, according to the latest data from Auto Trader.

Despite such favorable market conditions and robust underlying market health, average retail prices were down -8.3% year-on-year (YoY), marking the sixth consecutive month of decline.

There are signs, however, of retail prices stabilising, with February recording the lowest rate of month-on-month (MoM) contraction (-0.6%) since October 2023.

Demonstrating the strength of the used car market, Auto Trader recorded circa 81.7 million cross platform visits to its marketplace in February, which was a 9.4% increase on the same period last year.

This increased engagement on site is being fueled by the robust levels of consumer demand; Auto Trader’s data shows that demand was up 8% YoY in February, which was an uptick on the 6% recorded in January.

Reassuringly, Auto Trader’s consumer research points to sustained demand, with around 80% of in-market car buyers surveyed claiming to be as confident in their ability to afford their next car as they were last year; nearly a third (31%) said they were ‘much more’ confident.

Current demand is further highlighted by the current speed at which used cars are

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