China's BYD says it is against import of 5-year-old used vehicles

Business Recorder

a day ago

A Chinese automobile importer in the fast emerging new energy vehicle (NEV) market in Pakistan, BYD has opposed the government's proposal to allow the import of five-year old used cars. It believes the step would not only disrupt local manufacturers but would also hurt the environment and increase demand for more foreign exchange to import expensive petroleum oil.
Speaking at a media briefing at its recently opened 'experience center' in Karachi on Thursday, BYD Vice President for Strategy and Sales Danish Khaliq said the five-year old used cars will be available at up to 60% depreciated prices in Pakistan, as the import of second-hand cars allows depression at 1% a month from its actual price.
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This, he said, is not good for the local price sensitive market. It would not only impact the fast developing NEV market but would also shrink sales of old Japanese players in the oil-run engine segment in the country.
He proposed that the government consideration to cut duty on import on CBU (imported cars) in the upcoming budget 2025-26 'should be limited to NEVs only - equating ICE (oil-run engine) with NEVs would create adverse selection for customers. '
Moreover, he said the auto sector duty reduction should be limited to those OEMs (automakers) willing to invest in Pakistan, and should dovetail into Pakistan's vision for both industrial development and sustainability of the transport sector in a growing economy.
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He added that the import of upto five-year old oil-run cars would cause environmental degradation and interrupt meeting United Nations' Sustainable Development Goals, while also hurting job creation.
Pakistan is already importing upto 3-year old cars at present.
BYD has recently launched two electric vehicles in Pakistan.
Mega Motor, its local partner in Pakistan, is setting up an NEV manufacturing plant in Gharo, Sindh. It is expected to come online next year with an installed capacity of 25,000 cars a year, Khaliq said.