After years of resisting the import of used cars, Indus Motors has made a surprising shift in strategy. The automaker is now preparing to take advantage of the government’s new policy that allows the commercial import of used vehicles. The move signals a major turnaround for the company, which has long dominated Pakistan’s automobile market through local assembly.
The decision comes as the country’s auto market undergoes a major transformation. Three months into FY26, sales data show a strong rebound, led by SUVs and light commercial vehicles (LCVs). These segments have grown rapidly, outpacing passenger cars both in sales and market share. According to industry figures, SUV and LCV sales surged 72 percent year-on-year in the first quarter, compared to a 46 percent rise in passenger cars. Together, SUVs and LCVs now make up 31 percent of total industry volumes.
While total sales are still below the FY22 peak, demand for premium and high-end models is at an all-time high. Brands like Haval have gained traction, signaling a lasting shift toward more expensive vehicles. In contrast, mid-range models such as Suzuki Alto, Wagon-R, and Toyota Yaris are losing ground. Sales for Suzuki Alto — once the top-selling model — have dropped 28 percent from their peak, reflecting growing affordability issues for middle-class buyers.
The used cars debate has reignited due to these structural changes. Assemblers have long complained that imported vehicles hurt local production, but analysts argue that the industry’s neglect of affordable models created a gap in the first place. With financing costs high and car prices soaring, used cars are becoming a practical alternative for many consumers.
By embracing the used cars policy, Indus Motors appears to be making a strategic adaptation. The company’s new approach could help it stay competitive as the market continues shifting toward premium segments while lower-income buyers increasingly turn to imports.
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