BYD is not in favor of government plan to import used vehicles

Chinese automobile brand BYD have opposed the Pakistan government’s plan to allow the import of used vehicles, warning it would strain foreign exchange reserves and undermine policies promoting new energy vehicles.

BYD Vice President for Strategy and Sales, Danish Khaliq, told Nukta that the government’s Finance Bill 2025-26 is expected to permit the import of used vehicles aged five to 10 years.

These vehicles could be sold in Pakistan at up to 60% depreciated prices, as the policy allows a monthly depreciation rate of 1% from the original price.

Khaliq said the influx of used vehicles would put immense pressure on foreign exchange reserves and the domestic currency. Increased imports could also worsen the balance of payments situation.

He added that while the government aims to reduce petroleum product imports, allowing five-year-old vehicles would increase the import bill. The move could also harm Japanese auto assemblers in Pakistan and shrink their domestic sales.

Another concern, Khaliq noted, is that the policy would counter the government’s efforts to reduce carbon emissions. According to the International Monetary Fund’s latest report, Pakistan is among the world’s top 20 greenhouse gas (GHG) emitters. In 2021, the country contributed about 1% of global GHG emissions—totaling 488 million tons—placing it alongside major emitters like Iran and Saudi Arabia in the MENAP region.