Low localisation pushes up auto parts import bill

Dawn | Feb 19, 2021 at 8:42 AM
  • Massive imports of parts and accessories by new entrants under duty and tax incentives has caused a whooping jump of 79 per cent in arrival of completely and semi-knocked down (CKD/SKD) kits to $468 million in the first seven months of the current fiscal year (7MFY21).
  • Local automakers claim high localisation in various models, but new models and variants by existing assemblers are being rolled out with low localisation of parts which is also pushing up imports of parts and accessories.
  • As per the data of Pakistan Bureau of Statistics (PBS), a 42pc jump was also seen in import of CKD/SKD for local assembly of trucks, buses and other heavy vehicles to $163m in the 7MFY21.