Toyota mulling entering used car import market

IMC seeks EDB guidance as policy shift pushes company to explore new avenue

KARACHI: Indus Motor Company (IMC), the local assembler of Toyota vehicles in Pakistan, is weighing the option of importing used cars commercially in response to the government’s new vehicle electrification and liberalised import policy.

Pakistani officials and the International Monetary Fund (IMF) have agreed to abolish two tax-free car import schemes and tighten regulations on the third scheme as part of efforts to curb misuse and improve transparency in the import regime.

The two sides reached a consensus to discontinue the baggage and gift schemes. While stricter controls will be imposed on the Transfer of Residence scheme, which allows overseas Pakistanis to import vehicles when returning to the country.

Company insiders said the move comes amid a rising influx of imported vehicles under the gift, transfer of residence, and baggage schemes. A trend that has squeezed sales of locally assembled cars.

To navigate the new regulatory environment, IMC has formally approached the Engineering Development Board (EDB) for guidance on documentation, compliance protocols, and procedural formalities required to begin commercial imports.

In its communication with the EDB, IMC stressed that its primary focus remains on strengthening domestic CKD (Completely Knocked Down) operations — a segment that supports employment, localisation, and value addition to the national economy.

The company noted that the evolving policy landscape has compelled it to explore commercial imports of used vehicles to stay competitive in the market.

Indus Motor Company says:

IMC highlighted that its extensive nationwide network of 58 dealerships, equipped with skilled engineers and technicians. they can ensure consistent aftersales service and uphold customer satisfaction even within the used vehicle segment.

The automaker also reiterated its commitment to adhering to all regulatory requirements and requested a clear and transparent procedural roadmap from the EDB.

This development follows the Ministry of Commerce’s issuance of SRO 1895(I)/2025 on June 30, which permits the commercial import of used vehicles under HS Codes 8702, 8703, 8704, and 8711.

The directive signals a major shift in Pakistan’s automotive policy and could reshape the competitive balance between local assemblers and used car importers in the coming months.

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