'Big gamble as used car imports rise'

H2 Consulting report warns that influx of old vehicles harms environment, keeps buyers in dark about true condition

LAHORE:

Buying a used imported vehicle in Pakistan - over 90% of them from Japan - remains a gamble for consumers.

"They might get lucky and the car runs without trouble for many years, or it may break down a day later and be no better in value than scrap metal," stated a report by H2 Consulting, a management consulting firm. The report said while the government seeks ways to meet demand for affordable and reliable mobility, flooding the market with questionable used cars is not the answer.

"The most important reason is to stop the migration of vehicular population from developed countries such as Japan to ours. It has been well documented since 2022 that Pakistan is among the countries most affected by climate change through no fault of its own. Every policy must therefore put the environment at its centre," the report stressed.

It added that although local manufacturers present challenges for buyers, used car imports have not served consumer interests. The report pointed out that the specifications of imported vehicles are often uncertain, with buyers receiving cars that differ from what was promised. In addition, the lack of maintenance records means severely damaged vehicles are being imported without consumers knowing their true condition.

"On top of that, spare parts are expensive and must be imported. Even if available, local technicians are not well trained for maintenance and often botch up the job," the report noted. The report recommended that the government encourage local manufacturers to compete by lowering tax slabs for similar-sized vehicles and offer incentives for technology upgrades to better capture market share.

"Like all industries, the automotive sector contributes to GDP and provides jobs. While the trajectory of the industry may be less than desired, the progress made cannot be ignored. The government may not want to continue giving unconditional support to the industry, however, abandoning it means wreaking havoc on our environment – which is not a choice that should be made," concluded the report.