Import restrictions inflicted in May and July of 2022 continued to hurt the country’s car industry for more than a year. Low car sales and back-to-back production shutdowns in the face of low inventory was a norm. However, there is a glimmer of hope on the horizon after the State Bank of Pakistan (SBP) has eased the restrictions on CKD kits.

As the automotive industry strives to bounce, December 2023 marked a significant milestone with monthly Completely Knocked Down (CKD) car kit imports surpassing $100 million for the first time since November 2022. This surge signals a potential recovery for the beleaguered car manufacturers in the year ahead.

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 landscape faced a tumultuous ride in 2023, grappling with supply chain disruptions, chip shortages, and global uncertainties. These challenges resulted in a disastrous year for car manufacturers worldwide. However, the recent uptick in CKD imports presents a positive shift, hinting at a revival in the industry this year.

CKD imports play a crucial role in the automotive sector, allowing manufacturers to assemble vehicles locally, promoting cost-effectiveness and efficiency. Suffice it to say, the $100 million milestone is not merely an achievement but a symbol of resilience and adaptability in the face of adversity.

Car Sales Increased by 10% Last Month

As per 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, as opposed to the 6,475 units sold in November 2023.

Comparing year-to-year (YoY) data, a significant 66% drop is observed, as car manufacturers managed to sell only 17,012 cars during the corresponding period last year.

Similarly, two-wheeler sales experienced a significant decrease of 7% last month, selling 82,362 units in Dec’23 against 88,493 units in November 2023.

What do you think about the staggering uptick in CKD imports? Drop your thoughts inn the comments section.