Imports of completely knocked down (CKD) vehicles into Pakistan increased by 116% during the first nine months of fiscal year 2025-26, indicating a rise in domestic automobile demand and higher levels of local assembly activity, according to official data released on Sunday, April 19th.

Data from the Pakistan Bureau of Statistics indicate that CKD car imports rose to US$ 1.47 billion during the July-March FY26 period, compared with US$ 680 million recorded in the corresponding period of the previous year.

This increase follows a recovery in Pakistan's automobile sector after a prolonged economic slowdown, supply chain disruptions, and import restrictions in earlier years.

Analysts state that the rise in CKD imports indicates increased production activity among local assemblers, who depend on imported kits for domestic manufacturing. The trend suggests higher consumer demand and a reduction in constraints associated with foreign exchange-related restrictions that were previously implemented to stabilise external accounts.

Sales data also indicate an increase. Local car sales rose by 43% year-on-year to approximately 144,000 units during the July-March period, according to estimates cited by Arif Habib Limited, a Karachi-based brokerage house. This change has been linked to stabilising inflation, improved availability of financing, and a gradual increase in consumer confidence.

Imports of completely built units (CBUs), which refer to fully assembled vehicles, also increased during the same period. CBU imports rose by 31% to US$ 263 million, compared with US$ 200 million in the previous year, indicating demand within premium and specialised vehicle segments.

Market observers note that, although CKD imports account for the majority of volumes due to local assembly operations, the increase in CBU imports indicates demand among higher-income consumers despite broader economic pressures.

Industry participants expect this trend to continue in the coming months, provided that macroeconomic stability is maintained and import regulations remain predictable. However, analysts caution that the sector remains sensitive to currency fluctuations, taxation policies, and import controls, which may affect future growth trajectories within Pakistan's automotive industry.