Understanding Markets in Afghanistan: A Study of the Market in Second-hand Cars

Case Study Series

UNDERSTANDING MARKETS
IN AFGHANISTAN
A Study of the Market
in Second-hand Cars

Anna Paterson

Funding for this research was October 2005

provided by the UK Department
for International Development (DFID)

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Understanding Markets in Afghanistan: A Study of the Market in Second-hand Cars

© 2005 Afghanistan Research and Evaluation Unit. All rights reserved.

The views and opinions expressed in this report do not necessarily reflect the views of AREU.

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 Understanding Markets in Afghanistan: A Study of the Market in Second-hand Cars

About the author

Anna Paterson is a researcher on political economy and markets at the Afghanistan
Research and Evaluation Unit. Previously, she worked at the UK Foreign and
Commonwealth Office as a research analyst, on Moldova and Ukraine, and on the
terrorist threat in Russia, the Caucasus and Central Asia. She also worked for two
years as a research analyst on the former Soviet Union and Afghanistan for a business
intelligence company.

About the Afghanistan Research and Evaluation Unit

The Afghanistan Research and Evaluation Unit (AREU) is an independent research
organisation that conducts and facilitates action-oriented research and learning that
informs and influences policy and practice. AREU also actively promotes a culture of
research and learning by strengthening analytical capacity in Afghanistan and by
creating opportunities for analysis and debate. Fundamental to AREU’s vision is that
its work should improve Afghan lives.
AREU was established by the assistance community working in Afghanistan and has a
board of directors with representation from donors, UN and multilateral agencies
and non-governmental organisations.
Current funding for AREU is provided by the United Nations Assistance Mission in
Afghanistan (UNAMA), the European Commission (EC), the United Nations High
Commissioner for Refugees (UNHCR), Stichting Vluchteling (SV), the World Bank, the
United Kingdom Department for International Development (DFID), and the govern-
ments of Sweden, Switzerland, Denmark and Canada.
Funding for this case study was provided by DFID.

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Understanding Markets in Afghanistan: A Study of the Market in Second-hand Cars

Acknowledgements
This study was researched by Anna Paterson, Shah Wali and Asif Karimi (researchers
at AREU) and Lorenzo Delesgues. The report also draws heavily on the work of Jamal
Khan (consultant). Many thanks to all of the above for their contributions. Thanks
also to Sarah Lister (senior researcher at AREU) for valuable input and to Hugo
Desjardins, who took some of the photographs contained in this report.

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 Understanding Markets in Afghanistan: A Study of the Market in Second-hand Cars

Contents
1. Introduction 1
2. Vehicle use in Afghanistan 3
3. Main players in the second-hand car market 6
3.1 Importers 6
3.2 Used vehicle-trading markets 8
3.3 Second-hand car “bargainers” 9
3.4 Customers 10
4. Prices and types of vehicles on the market 13
5. Import routes 16
5.1 The Japan/Korea–Dubai–Iran–Afghanistan route 18
5.2 Trafficking of vehicles and spare parts over the
Pakistani border 20
Vehicles 20
Spare parts 20
5.3 Imports from Europe, Russia, China and Central Asia 21
Cars 21
Motorbikes 22
5.4 Transport of vehicles 22
6. Government regulation 23
6.1 Customs 23
6.2 Registration 24
6.3 Customs and registration process reported by INGOs 24
6.4 Quality, testing and pollution 25
6.5 Steering 27
7. Conclusions and recommendations 28
7.1 Harnessing trade and traders 28
7.2 Standards and public health 29
7.3 Private sector development 29
References 31

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Acronyms
ADB Asian Development Bank
ANSA Afghanistan National Standardisation Authority
AREU Afghanistan Research and Evaluation Unit
ATTA Afghan Transit Trade Agreement
INGO international non-governmental organisation
MoC Ministry of Commerce
MoE Ministry of Economy
MoF Ministry of Finance
MoI Ministry of Interior
NEPA National Environmental Protection Agency
PAH poly aromatic hydrocarbon
SUV sports utility vehicle
UAE United Arab Emirates
UNEP United Nations Environmental Programme
WHO World Health Organization

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 Understanding Markets in Afghanistan: A Study of the Market in Second-hand Cars

Executive summary
This study is the fifth in a series of six case studies that aims to enhance under-
standing of the role of markets in affecting prospects for growth, and the distri-
bution of the benefits of growth, in Afghanistan. The studies explore the structures
and functioning of markets in Afghanistan, with a view to assisting in the formulation
of policies to enhance broad-based growth and poverty reduction in a market
environment.
The purpose of this study on the market in second-hand cars was to gain insight into:
the experiences of Afghan dealers in the vehicle market; numbers of players; where
the greatest margins were made; what connections there were between market
players; and what, if any, barriers were faced by new entrants.
The study found that:
• Vehicle use has grown dramatically in Afghanistan since 2002. The number of
passenger cars registered in the country in 2003 was 340,000, an increase of 94%
from the previous year (this increase in registration is also the result of a greater
drive to register vehicles by the Ministry of Transportation). This growth is
expected to continue in the medium term, albeit from a low level of car
ownership by international standards. 1.4% of the Afghan population currently
owns a vehicle, and this number is projected to grow to 4% of the population by
2015. [Section 2: Vehicle use in Afghanistan, pp. 4–6]
• There are signs that the import vehicle market is not as vibrant as it was in
the immediate post-Taliban period. Trade has been affected by the ban on
right-hand drive vehicles in mid 2004, and the increase in demand for vehicles
may have slowed. Most traders reported that the vehicle import trade was at its
most profitable during the Taliban period, when right-hand drive vehicles were
imported into Afghanistan for re-export to Pakistan. [Section 2: Vehicle use in
Afghanistan, pp. 4–6 and Section 3: Main players in the second-hand car market,
pp. 7–13]
• Many Afghans rely on vehicles to make a living through provision of private
transport services. Availability of affordable vehicles is important for
livelihoods and for economic growth. There is a balance to be struck between,
on one hand, improving regulation of vehicle standards and removing dangerous
vehicles from circulation, and on the other hand, protecting access to affordable
cars. [Section 2: Vehicle use in Afghanistan, pp. 4–6, Section 4: Prices and types
of vehicles on the market, pp. 14–16 and Section 5.4: Quality, testing and
pollution, pp. 26–28]
• During the conflict period, vehicles became popular as a form of small-scale
investment after other assets such as real estate and agricultural land became
insecure. Vehicles are still used as a store of value in the absence of an effective
banking system. There is some anecdotal evidence that the car and motorbike
trade may be used as a means of laundering money. The purchase of electronic
appliances, spare parts or vehicles, which can be procured with little or no
scrutiny from official bodies, might represent a way of moving significant
amounts of money and disguising its origin. [Section 3.4: Customers, pp. 11–13]
• The current difficulties experienced by the vehicle business illustrate how
unreliable such commodities are as a means of investment. Afghans who have
bought vehicles as a store of value may now be facing a reduction in the value of
their investment. An effective and reliable banking system would provide a sound

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means of investing money that would also benefit the broader Afghan economy.
[Section 3.4: Customers, pp. 11–13]
• Importers of vehicles were often from traditional trading families with a
history of trading different commodities along different routes, depending on
the constraints and opportunities of demand and of geopolitics. Japanese
vehicles are currently imported largely via second-hand car markets in Dubai,
from where they are shipped to Bandar-e-Abbas in Iran and driven overland to
Islam Qala near Herat. Some traders buy vehicles in Germany and transport them
overland to Afghanistan – a route made popular in the 1970s. There are older
vehicles from the former Soviet Union on the market, and Russian and Central
Asian vehicles continue to be imported to Afghanistan. [Section 4: Prices and
types of vehicles on the market, pp. 14–16 and Section 5: Import routes, pp. 17–
23]
• The ban on import and registration of right-hand drive vehicles appears to
have been successful enough to significantly reduce the previously vibrant
import of vehicles destined for re-export to Pakistan. This suggests that
government regulation can be enforced and can have an effect upon markets.
The trade in spare parts transiting from Afghanistan to Pakistan remains active.
[Section 6: Government regulation, pp. 24–28 and Section 5.2: Trafficking of
vehicles and spare parts over the Pakistani border, pp. 20–22]
• There is ample scope for streamlining cross-border procedures, including the
process of clearing vehicles through Afghan customs and registration –
reducing waiting times and minimising the potential for corruption and bribe-
taking. Such streamlining, coupled with reduction of informal charges paid by
traders and negotiation of favourable trade agreements with neighbouring
countries could help to harness cross-border trade as a driver of growth in the
formal economy. [Section 6: Government regulation, pp. 24–28]

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1. Introduction
This study is the fifth in a series of six case studies conducted under the Afghanistan
Research and Evaluation Unit’ Political Economy and Markets research stream. The
first three case studies were produced in mid 2004, and dealt with three important
sectors in the Afghan economy: raisins, carpets and construction materials. The
current set of studies deal with three key import markets: petroleum fuel, second-
hand cars and pharmaceuticals. The aim of the studies is to enhance understanding
of the role of markets in affecting prospects for growth, and the distribution of the
benefits of growth, in Afghanistan. They explore the structures and functioning of
markets in Afghanistan and thereby aim to assist in the formulation of policies to
enhance broad-based growth and poverty reduction in a market environment. Each
study is designed to stand alone, but the series can be read together to gain a fuller
picture of markets across a range of sectors. A briefing paper was produced after the
first three studies, which provides discussion and preliminary analysis of overall
findings.1 A longer synthesis paper drawing together and analysing the findings of the
six studies will be produced on their completion.
The purpose of this study, like that of the previous studies, was to investigate the
real structures of markets in Afghanistan. Researchers attempted to gain an insight
into the experiences of Afghan businessmen in the used vehicle market: how
numerous the players are, where the greatest margins are made, what connections
there are between market players and what, if any, barriers are faced by new
entrants. Semi-structured interviews were conducted with importers, large and
small retailers, some groups of customers, international agencies and relevant
government bodies. Research was conducted in: Kabul; Mazar-i-Sharif and Heiratan;
Herat, Islam Qala and Turgundi; Zaranj; Quetta; Kandahar; Peshawar; and Jalalabad
from April to May 2005. In Herat and Kabul, repeated visits were made to the large
vehicle markets on the outskirts of the city, where owners of vehicle shops and
“bargainers” working on their sites were interviewed. Second-hand vehicle shops,
motorbike shops and smaller vehicle markets and spare parts markets based in town
were visited in all locations. Vehicle and spare parts traders were also interviewed
at border areas. Certain groups of customers were interviewed, including procure-
ment officers in large organisations, individual car owners and professional drivers,
as well as groups of mechanics in the workshops of two large organisations.
The second-hand vehicle trade in Afghanistan has been a vibrant one since Taliban
times. In fact, there is some suggestion that the trade was even more vibrant in
Taliban times, stimulated by the transit of vehicles through Afghanistan into
Pakistan. The internal market for vehicles in Afghanistan has grown since 2002, and
vehicles have become more available and affordable for Afghan consumers. Vehicles
often provide livelihoods for Afghans involved in private transport services, and they
are also used as a form of investment by Afghan consumers. However, there is some
concern over the quality of vehicles available in Afghanistan. Many vehicles are very
old and may have been involved in accidents, while others have steering on the
right-hand side or have had the steering altered in sub-standard workshops. Some
vehicles on the market may even have been stolen in their country of origin. There
are indications that the vehicle market in Afghanistan has become less profitable as
the number and type of vehicles on the market are outstripping demand. The
regulation of vehicle imports needs to strike a balance between preserving the

1
S. Lister and A. Pain, 2004, Trading in Power: The Politics of "Free" Markets in Afghanistan, Kabul:
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affordability of vehicles for Afghans whose livelihoods depend on them, and ensuring
the quality and safety of goods sold to Afghan consumers, especially given that those
consumers have little recourse to guarantees or insurance.
This study looks first at the use of second-hand vehicles in Afghanistan, then at the
different market players involved in the supply chain for these vehicles. Prices and
types of vehicles on the market and the main import routes for these products are
then considered, after which the report turns its attention to government regula-
tion. Finally, possible means of ensuring the openness, quality and competitiveness
of the market are discussed.

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2. Vehicle use in Afghanistan

The number of vehicles on the roads in
Afghanistan has increased dramatically since
2002. According to the Afghanistan Statistical
Yearbook, the number of passenger cars regis-
tered in the country in 2003 was 340,000,
compared to 175,000 in 2002: an increase of 94
percent.2 This increase in registration is the
result both of an increase in imported vehicles
and of a greater drive to register vehicles by
the Traffic Department of the Ministry of Transportation (many vehicles in
Afghanistan are likely to remain unregistered). The growth in vehicle use in
Afghanistan is set to continue in the medium term, albeit from a very low level of
vehicle ownership per capita by international standards. In 2003, the number of
vehicles owned per 1,000 people in Afghanistan was 14, or 1.4 percent. This number
is expected to rise to 27 in 2010, and 40 in 2015.3
There is a general pattern of growth in vehicle use across the developing world.
While in 1990, only one fifth of all kilometres driven were in developing countries,
by 2030 it is estimated that this share will have risen to one half.4 Much of this
growth in developing countries (generally) and in Afghanistan (specifically) is fed by
second-hand cars, which are within the reach of those who cannot afford a new
vehicle. There are key implications of this growth in terms of public health and
environmental pollution. The substances emitted from car exhausts aggravate heart
and respiratory diseases such as asthma, bronchitis and emphysema. Old vehicles
produce more harmful emissions than the more technologically advanced newer
models. In Mexico, where 60 percent of kilometres are travelled by cars more that
10 years old, these old vehicles account for 90 percent of all hydrocarbons and
carbon monoxides, and for 80 percent of all nitrogen oxides emitted.5 There are no
statistics available to show what percentage of kilometres travelled in Afghanistan
are driven by vehicles more than 10 years old, but an observation of vehicles on the
road, even in Kabul, suggests that the percentage may be even greater than that
in Mexico.
However, as well as posing a potential public health risk, the availability of
affordable second-hand vehicles is important for livelihoods and economic growth
across the developing world. Many Afghans rely on vehicles to make a living through
offering private transport services in taxis, private vans, minibuses and buses, and
trucks. The Afghanistan Statistical Yearbook recorded the registration of over
65,000 trucks in 1382 (March 2002–March 2003) – this was 60% more than the
previous year. Over 37,000 private buses were registered during the same period, up
41% from the previous year, while 52,393 private taxis were registered, up 58% from
the previous year. An Asian Development Bank (ADB) report on the Afghan transport
sector suggests that there may be as many as 30,000 private taxis operating in
Kabul. Regional transport of goods and people also relies on the private sector, and

2
Central Statistics Office, Afghanistan Statistical Yearbook 2004
3
Securing Afghanistan’s Future: Accomplishments and the Strategic Path Forward,
Government/International Agency report, March 2004, p. 43
4
J. Janischewski, M. P. Henzler and W. Kahlenborn, 2003, The Export of Second-Hand Goods and the
Transfer of Technology: An Obstacle to Sustainable Development in Developing Countries and Emerging
Markets? Adelphi Research (commissioned by the German Council for Sustainable Development)
5
Janischewski et al, 2003

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165 long distance bus companies are estimated to operate in the country, using
mostly second-hand buses, minibuses and vans.6 A previous ADB report on the Afghan
transport sector confirms that Afghans in Afghanistan, as well as those who have
relocated to Pakistan, have traditionally had a very strong presence in the road
transport business, with their business “facilitated by easy availability of competi-
tively priced European trucks, spare parts and-low priced (smuggled) fuel.7 Many
Afghans rely on smaller vehicles such as passenger cars as a means of generating
income, through registering as a taxi or through transporting goods.
The Afghanistan Statistical Yearbook (2004) records the following patterns in
imports of vehicles and spare parts to Afghanistan since 1999.

$1,000,000,000

$800,000,000 Passenger cars

Motorcycles
$600,000,000 Buses
US$
Lorries
$400,000,000
Spare parts
$200,000,000

$0
1998 1999
2000 2001
2002 2003

Figure 1. Value of vehicle imports in US$, 1999–2003

It is relatively difficult to smuggle vehicles into Afghanistan in large numbers and

this research did not find significant numbers of individuals smuggling vehicles into
the country. However, the above statistics cannot be considered a reliable guide to
vehicle imports, particularly because of the difficulty of collecting data over the
past decade in Afghanistan: large numbers of individuals may bring vehicles across
porous borders, and import statistics have not always been reliably fed to the
central government, especially from Herat.
Nonetheless, it is useful to consider the patterns emerging from these statistics. The
spike in passenger car imports in 1998–99 suggests that the car trade was vibrant
during the Taliban period, and this was borne out by the many traders in this
research who reported that business had been at its best during Taliban times. That
this was largely fuelled by the lucrative business of re-exporting cars into Pakistan
(discussed in further detail below) is evidenced by the fact that there were far
fewer vehicles on the road in Afghanistan during Taliban times. One vehicle trader
reported that it was difficult to be a car owner in Kabul during the Taliban period as
driving a car could make the driver a conspicuous target for harassment. The Taliban

6
ADB, March 2004, Transport Sector: Building Connections, Securing Afghanistan’s Future:
Accomplishments and the Way Forward
7
ADB, 2002, Afghanistan’s Transport Sector: On the Road to Recovery,
http://www.adb.org/Documents/Reports/Afghanistan/Transport/Transport_Sector_AFG.pdf.
For more information on fuel smuggling see: A. Paterson, A Study of the Market for Petroleum Fuels,
2005, Kabul: Afghanistan Research and Evaluation Unit.

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 Understanding Markets in Afghanistan: A Study of the Market in Second-hand Cars

themselves used mostly civilian vehicles rather than military ones, installing rocket
propelled grenades on the back of pick-up trucks. Taliban leaders were known to
have a preference for four-wheel drive Toyotas. Images of Toyota-driving Taliban
fighters in the international media after September 11, 2001, even prompted the
Toyota Motor Corporation to issue a statement claiming that only one Toyota vehicle
had been exported to Afghanistan since 1997 and that “any other Toyota products
presently in the country have probably arrived from neighbouring countries via
unofficial channels.”8 These Toyotas came mostly via Pakistan, often “donated” by
Pakistani religious schools and organisations.
The immediate post-Taliban period (2001–02) saw some growth in vehicle imports as
is to be expected in a post-conflict context. However, the decline in imports since
2003 suggests that the vehicle import trade is not as strong as it was in the
immediate post-Taliban period and that the growth in vehicle demand is slowing.
This was confirmed by the statements made by many traders during this research.
The two products that have bucked the general trend since 1998 are motorbikes, the
import of which continues to show strong growth, and spare parts, the import of
which actually declined in the immediate post-conflict period, but showed a
moderate recovery in 2003.

8
John Burns, “Trucks of the Taliban: Durable, Not Discreet”, New York Times, 23 November 2001

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3. Main players in the second-hand car market

Figure 2 illustrates the

main players involved in
Large
Importer Vehicle Vehicle customer the supply chain for
trading bargainer (INGO, second-hand vehicles in
centre govern-
ment) Afghanistan. Many com-
modities have been used
in Afghanistan as “coping
Ordinary strategies” by those who
customer buy and sell or resell
goods, often on a one-off
or opportunistic basis.
This was observed in the
second-hand car trade,
Figure 2. Supply chain for second-hand vehicles in Afghanistan
where there are many
small players involved.
Vehicle bargainers selling vehicles on behalf of car trading “centres” are essentially
self-employed, receiving a flat rate or a small commission for each vehicle sold.
Some reported that they had become trapped in this business because of debt.
There are also players in the second-hand car market who are involved as a means of
investment or even informal credit. Further up the supply chain, importers of
vehicles are frequently long-established players who have been involved in the
market since the Taliban period or longer.
The second-hand car trade in Afghanistan is a good example of the way in which a
commodity can change hands many times, and the way in which commodities can be
“bought” without being paid for and “sold” by players other than the owners.
However, in spite of these informal mechanisms allowing players in this market to
borrow and invest, the market currently appears to be experiencing a difficult
period. There was little evidence of competition acting to deliver a better quality
product to consumers. Moreover, it appears that the trade is delivering lower returns
to traders, with most interviewees reporting that the market was less profitable
than it had been.

3.1 Importers
Importers bring regular consignments of vehicles, procuring them abroad and trans-
porting them into Afghanistan. Importers vary in size, but traders of second-hand
cars in Kabul said that the largest importers with whom they conducted business
brought instalments of some US$1m worth of vehicles at a time, although these
instalments were not regular. These traders estimated that a minimum of
US$400,000 in starting capital would be required to begin importing vehicles from
abroad, as the logistics of doing so were difficult – involving visas and employment
of local agents. Most importers reported that they had been involved in the vehicle
business since the Taliban period, if not longer. Asked when the vehicle import
industry had been at its best, many importers said the Taliban period had been
particularly profitable because of the strong trade in vehicles transported across
Afghanistan to Pakistan, and vehicles re-exported into Pakistan. This trade had been
seriously affected by the ban on importing right-hand drive vehicles in July 2004,
since Pakistani vehicles, unlike Afghan cars, drive on the left-hand side of the road

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 Understanding Markets in Afghanistan: A Study of the Market in Second-hand Cars

and have right-hand steering. Box 1. An importer’s experience

Many importers in Herat
reported that they had lost I have been a used car importer for nine years. I come
significant amounts of money as from a Kandahari family of traders. Previously our
they had right-hand drive family was involved in the clothing import trade. I
vehicles that were currently import cars into Afghanistan through Islam Qala. My
sitting in the customs compound brother travels to procure the cars from Dubai, then I
and could not be released. deal with them when they arrive here. I have 150 cars
currently on sale in different car trading shops in the
Most importers interviewed in market in Herat. Prices for cars have dropped by up to
this research either travel 20 percent over the past six months and the ban on
abroad themselves to procure right-hand drive vehicles has also hit business. The
cars or have family members business is not as profitable as it was during Taliban
who travel or live abroad, thus times. Most car importers here are Kandaharis; import–
limiting the cost of employing export is their traditional business. There are around 50
agents in foreign countries. large vehicle importers in Herat.
Importers mostly do business in Vehicle importer, Herat
Dubai, which is a large reposi-
tory for second-hand vehicles from Japan destined for export to the developing
world. Importers claimed that vehicles were sufficiently cheap in Dubai to make
buying in large numbers and shipping to Afghanistan a profitable business. There is a
large Afghan business community in Dubai, making this a comparatively easy place to
do business for those Afghans who do have relatives or business partners there. Some
Afghan importers procure vehicles directly from Japan, where many foreign and
especially Pakistani traders are involved
in the used-vehicle trade. Box 2. The vehicle-trading business
This research found that direct dealings The vehicle trade is not as lucrative as it once
between Afghan importers and Japan was. During the Taliban period, most cars
were much rarer than the Dubai con- coming into Afghanistan had right-hand
nection. Some importers encountered in steering and were destined for re-export to
this study procured vehicles directly Pakistan. Now the business must concentrate
from Europe (mostly Germany) but on the domestic market, but everyone has a
these were less common than those car now and demand has decreased. Also,
importing from Dubai. One importer in many altered steering vehicles are now on the
Kabul said he travelled to Hamburg, market. The alteration is often badly done
where he had relatives, up to three and these vehicles can be dangerous.
times a year to procure vehicles, from Vehicle trader, Herat
where he brought the vehicles back to
Afghanistan himself through south- I have been involved in selling vehicles for 11
eastern Europe, Turkey and Iran. He had years and I was the first second-hand car
been involved in the vehicle trade for trader in town. I have a representative who
more than 20 years and over this time goes to buy vehicles for me in Herat. When I
he had travelled to Dubai, India, Russia started in the business I brought cars from
and Central Asia as part of this trade. Karachi via Kandahar, but this was difficult as
The route from Germany was profitable, the roads were insecure. Business was best
as he was able to specialise in larger toward the end of the Taliban time, when we
vehicles such as trucks. There were were buying from Herat and exporting to
buses and refrigerated trucks on sale in Pakistan.
his trading centre. Smaller vehicles Vehicle trader, Zaranj
could be packed inside the larger ones
for transport from Germany to Afghanistan.

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Bulk import of second-hand cars appeared to be dominated by long-established

players who had also often been involved in other types of trade, such as textiles or
food. In Herat, many of the second-hand car importers interviewed were from
Kandahar, whereas the players lower down the supply chain, such as owners of car
trading shops and “bargainers”, were from Herat. Some importers were thought to
be politically connected at a high level, and one was reported to be the son of a
provincial governor. However, there was also evidence of an increase in the number
of players importing vehicles. One customs official in Herat explained that previously
there had been “a group of Kandaharis bringing 200 vehicles at a time”, whereas
now there were more importers bringing 10–50 vehicles at a time.
Although importers of second-hand cars sometimes also deal in spare parts, shipped
in containers from Dubai, this research encountered many spare parts importers who
were specialised in this trade. Nonetheless, the dominant pattern of the spare parts
import business was similar to the trade in complete vehicles, with importers send-
ing family members to Dubai to oversee the purchasing of spare parts. Motorbike
importers tended to be similarly specialised and many were newer entrants in the
business, reflecting the recent growth of motorbike imports into Afghanistan. One
such importer and shop owner in Zaranj had been in the motorbike import business
for one and a half years and imported motorbikes and fridges from Iran.

3.2 Used vehicle-trading markets

Used vehicles are sold in two different types of
shops: individual shops based in the centre of
cities and large sites dedicated to this trade
and often located outside city centres. The
latter are sometimes spread over large areas
and divided into lots with small offices sur-
rounded by the vehicles on sale. Some markets
contain as many as 80 lots. The number of
vehicles on sale in each lot varies from twenty
to over a hundred. Each business in the market
has its own name and is owned by individuals, family businesses or business partner-
ships which register with the authorities, rent the land on which they are based,
and, generally speaking, sell cars on behalf of importers or small private owners.
These traders may also own some of the vehicles they sell, which they either buy
from importers or individuals bringing deliveries, or they buy direct from Herat. Buy-
ing vehicles from Herat is a cheaper option than setting up as an importer of vehicles
from abroad. One trader reported that whereas to make importing from abroad
profitable one had to operate on a much larger scale, one could spend US$10,000
buying vehicles in Herat and then make a rapid return on this investment by selling
the vehicles quickly in Kabul. It appeared at the time of research that this was still
possible in spite of the slowing of the vehicle business. There is also some vertical
integration, with importers owning their own vehicle-trading market lots. This was
more often the case for importers in Herat, and for importers who specialised in
larger, more expensive vehicles.

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In Kabul there are four second-hand car

Box 3. Business expansion
trading markets on the outskirts of the
There is no room for expansion in the vehicle city; the Qasaba market on the road to
imports market. There are so many traders Bagram, the Company market on the road
involved in this business these days and there to Kandahar, the Binihesar market on the
seem to be more cars than people in Kabul. Logar/Gardez road and the Sarikutal mar-
Vehicle importer, Kabul ket just beyond the Khair Khana pass. In
Kabul and Herat, vehicle-trading markets
have been moved out of the city centre by municipal authorities within the past
year. In Kabul, traders had previously been based in different locations in the centre
of town, particularly in Taimani. Some traders remained in the centre, but these
were also slated to be moved outside the city. Many shops still located in the city
are merely offices or showrooms for vehicle traders who also have lots in one of the
main out-of-town markets. In Kabul, as elsewhere, motorbike traders are mostly
based in the city itself.
In Herat, the vehicle markets are located along the road to Turgundi. Whereas they
were previously based near the customs building on the fringe of the city, they have
recently been moved further away from the city centre towards Turgundi. In Mazar-
i-Sharif and Zaranj, car markets were smaller and based inside the city, but they
were still mostly grouped together in small markets containing more than one busi-
ness. All traders complained that access to land and security of tenure were major
obstacles to business. Those who had been moved by municipal authorities said they
had spent money building their offices on their new sites, without knowing how long
they could remain there securely. Scarcity of space was a problem in Kabul, where
traders complained that they had insufficient space to display all the vehicles they
were selling. However, many traders reported that there was little room for expan-
sion in the market which was already flooded with vehicles, so constraints of space
were not necessarily preventing them from growing their businesses.

3.3 Second-hand car “bargainers”

When visiting second-hand car markets, it is
notable how many people are gathered in the
offices of each business. This is because the
owners of vehicle-selling businesses in car
markets do not necessarily involve themselves
in the daily business of selling each vehicle in
their lot. Rather they frequently use “bar-
gainers” who operate on these sites as the
interface with the customer – negotiating
prices, finalising deals and arranging payment
methods. Sometimes, these bargainers are employed on a small wage by the owner
of the shop or lot, but often they are effectively self-employed. It appears that some
bargainers are paid a flat rate per vehicle sold, some are paid a commission and
some are paid a small wage and a commission. One importer in Herat reported that
bargainers received a standard fee of 1,000 Afghanis (US$20) when they sold a
vehicle. A bargainer in Kabul reported that he was paid 1 percent of the vehicle’s
price. This would be US$50 from the sale of a US$5,000 Toyota Corolla – a reason-
able wage, assuming that a bargainer can sell a sufficient numbers of vehicles. One
Herat bargainer claimed that this was a good trade as he could earn up to 16,000
Afghanis (US$320) per month. However, a number of bargainers reported that they

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Understanding Markets in Afghanistan: A Study of the Market in Second-hand Cars

had difficulty selling vehicles. There can be as many as seven bargainers in each
vehicle-trading centre, and centres outside Kabul reported that sometimes a week
could pass with no sales. One trading business in Zaranj, which had seven traders
and claimed to pay them a small salary as well as a commission, reported sales of
only 2–3 vehicles per week.
Not surprisingly, entry into and exit from the second-hand vehicle market seems to
be easier the smaller the scale of the business. Most bargainers had been involved in
the used vehicle trade for a significantly shorter period of time than owners of
trading businesses or importers, averaging from one to three years. It appeared that
no physical capital was necessary to begin working as a bargainer, although personal
contacts were clearly required to be allowed to operate on a car trading site. Many
bargainers reported that they had started in the car trading business because they
had no income. These small scale opportunistic market players are likely to be hit
hardest by a contraction in the market. Such players could, in theory, simply move
to another more profitable trade, but some bargainers suggested that they had
accumulated debt and were now trapped in this occupation. No further details were
given, but one can speculate that bargainers might attempt to buy vehicles on
informal credit, perhaps from their employer, and in this way become further
indebted if they could not sell the vehicle quickly enough or for the right price.

3.4 Customers
Many international organisations, including international non-government organi-
sations (INGOs), procure vehicles from their countries of origin through their foreign
headquarters. This can lead to difficulties in extracting vehicles from customs and
passing them through registration procedures in Afghanistan, as elaborated on below
in the Section 6 on government regulation. The assistance community also has
official suppliers to meet its vehicle needs. For example, the Russian truck
manufacturer Kamaz is an official supplier for UN agencies in Afghanistan, southeast
Europe, Cyprus, Israel, Jordan, Lebanon and Palestine.
The Afghan government does import some of its own vehicles, but it also buys on the
local market. Some INGOs also buy vehicles on the local market and many traders
reported that international customers were the main consumers of more expensive
vehicles such as Landcruisers and other Sport Utility Vehicles (SUVs). As one trader
told a news reporter:
“We have enough customers willing to pay US$50,000 for this car,” salesman
Muhammed Khaled said, pointing at a shiny black Toyota Landcruiser.
“Customers are either foreigners, important commanders or government
officials.”9

Afghan customers include individuals buying for personal use and those who plan to
use vehicles as a commercial venture – as a taxi, as a private bus or to transport
goods. One vehicle trader reported that village community members would some-
times group together to buy a vehicle, the use of which they would then share.
Vehicles are also used in Afghanistan as a means of investment and as a substitute
for an effective banking system. Vehicles became popular as a form of small-scale
investment after other assets such as real estate and agricultural land became

9
Aleksandr Vasovic and Natacha Pisarenco, “Kabul’s streets jammed with jalopies, luxury Mercedes and
even an occasional tank”, Associated Press, 26 September 2003

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insecure during the conflict period. Assets that were used, particularly by the middle
class, to hedge against conflict, political instability and unexpected currency
devaluation included US dollars, Pakistani rupees and gold. Vehicles were considered
a valuable liquid asset, especially as a vehicle could be used to generate income in
the private transport services sector. As one report has noted:
Some Afghans have spent their life savings on second-hand cars and make a
living ferrying the scores of aid workers, journalists and other foreigners
around the city.10

Afghan customers continue to buy vehicles Box 4. A customer speaks

as an investment in the post-conflict
I work in Kabul and I am here in Jalalabad
period. Many individuals travel to Herat in
to buy my fourth car. This is the best kind
order to buy a vehicle for immediate resale
of savings for me. I don’t trust the Afghan
in Kabul or elsewhere. The fact that vehicle
banking system, I don’t want to keep my
purchase is considered an investment
money in Pakistani banks and I can’t
makes the issue of quality all the more
afford to buy property in the part of
important, especially in the absence of
Kabul where I live. So buying cars is my
insurance. Those buying a vehicle as an
chosen alternative.
investment risk losing that investment if
the vehicle turns out to be sub-standard, Afghan customer in Jalalabad
either because it is too old, has been
involved in an accident, contains an engine that is older than its frame or has had its
steering altered by poor quality mechanics. Afghans who have bought vehicles as a
store of value may now be facing a reduction in the value of their investment. As an
alternative, an effective and reliable banking system would represent a sound means
of investing money that would also benefit the Afghan economy more generally.
Buying a vehicle is also used as a means of informal credit in some parts of
Afghanistan, and in Pakistan in the Federally Administered Tribal Areas (FATA),
Baluchistan and the Northwest Frontier Province (NWFP). Many banks operating in
these areas do not accept non-movable property as collateral for a loan, as there is
widespread collective ownership of
Box 5. Import sources land. Many car dealerships are being
used as informal sources of credit for
If someone says they are importing 300 or 400
Landcruisers or 100 containers of spare parts,
individuals or families facing business
liquidity issues, personal financial
then the likelihood is that the money used to
buy these came from an illegal source.
shocks or other short-term cash
requirements. An individual can buy a
Trader, Khyber Agency, Pakistan vehicle from a trader for an amount
slightly higher than its market price,
but without paying the money up-front. The vehicle is resold at its market price and
these funds are used by the borrower. The individual then pays the vehicle trader
back over an agreed timeframe.11
Some have suggested that the vehicle market in Afghanistan is also used as a means
of laundering incomes from illegal sources. The purchase of electronic appliances,
spare parts or vehicles, which can be procured with little or no scrutiny from official
bodies, might represent a way of moving significant amounts of money and disguising

10
Vasovic and Pisarenco, 2003
11
Jamal Khan, 2005, Pakistani and Afghan Vehicle and Spare Parts Trade (unpublished report for
Afghanistan Research and Evaluation Unit)

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its origin. These commodities have the benefit of being easily movable and can also
be quickly resold and the resulting profits declared as a legal transaction. A group of
motorbike traders told researchers that money laundering had distorted the market
and had made business less profitable for legitimate traders, as those laundering
money through motorbikes could undercut the market price for these vehicles. The
above suggestions are highly speculative and anecdotal in nature; researchers did
not look for or find any concrete evidence of money laundering in the used vehicle
trade.

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 Understanding Markets in Afghanistan: A Study of the Market in Second-hand Cars

4. Prices and types of vehicles on the market

This study attempted to identify typical prices of the most popular vehicle models
on sale at car markets. Types and prices were collected at four locations in Kabul,
Mazar, Zaranj and Herat in May–June 2005. The resulting information is not a reli-
able guide but rather provides a snapshot of the types and prices of vehicles avail-
able at certain locations at a certain point in time. Most makes run on diesel
engines, but some have petrol engines. Most vehicle-trading shops sell a mixture of
passenger cars, vans and pick-up trucks. Many motorbike traders specialise in motor-
bikes and sometimes also electrical equipment. Fewer vehicle-trading shops sell
trucks and buses.

Kabul Mazar Herat Zaranj

Toyota 1992–94 1993–95 1993–97 1991–95
Corolla US$5,400–6,800 US$4,000–5,000 US$4,106–6,700 US$3,325–5,500

Other Mercedes 2003 Mercedes, year Mercedes 1994

passenger US$30,000 unclear US$10,500
car
BMW 1997 US$4,500–5,500
US$15,000
KIA (Korean), year
KIA (Korean) unclear
1995–96 US$3,800–5,500
US$5,400–5,800

Sports Toyota Prado, Surf, Toyota Prado, Surf, Toyota Prado, Surf, Toyota Prado, Surf,
Utility Hilux & Landcruiser Hilux & Landcruiser Hilux & Landcruiser Hilux & Landcruiser
Vehicle 1991–new 1991–94 1992–94 1991–2004
(SUV) US$9,000–32,000 US$7,000–9,500 US$5,830–15,600 US$8,300–19,950

Small Mazda 1990–96 Mazda, year unclear Mazda 1992 Mazda 1990–98
truck US$7,800–10,000 US$4,800–5,000 US$6,160 US$4,200–6,300

Motorbike Chinese motorbike, “Shanin” renamed

new Chinese motorbike,
US$450–500 new
US$490
Russian motorbike,
new
US$330–350

Truck Mercedes 1988–94

US$30,000–40,000

Bus German buses German bus, year German 54-seater

1979–90 unclear bus, year unclear
US$26,000–40,000 US$45,000–50,000 US$24,000

Table 1. Survey of make, year and price range popular vehicles

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Understanding Markets in Afghanistan: A Study of the Market in Second-hand Cars

This research found that vehicle markets sold

mostly passenger cars, some SUVs and vans,
with trucks and buses least commonly sold. The
proportions changed according to the trader,
with some specialising in larger vehicles. Some
traders also sold a greater proportion of new
vehicles or luxury vehicles. Traders also
reported that the market for SUVs had been
boosted by demand from INGOs, coalition
forces, government departments and the Afghan
National Army. Motorbikes were most commonly sold in specialised shops.
There are many Russian cars on the road in Afghanistan, but researchers did not find
these in great numbers on sale by traders. Russian Kamaz trucks were prominent in
businesses that sell larger trucks, as were Indian TATA trucks and older German
Mercedes trucks. There were some Mercedes and BMW passenger cars on the market,
but the most common passenger cars after Toyotas were Korean Kia and Hyundai
vehicles. Afghan traders reported that Korean vehicles were becoming more popular
as they had left-hand steering. Most small trucks on sale were altered-steering
Japanese Mazdas and most vans were altered-steering Japanese Toyotas. Among the
vehicles observed on the market in smaller numbers were American Hummers,
probably shipped from Dubai, and Ford pick-up trucks, assembled in Thailand. These
are also bought by the military and other organisations such as the de-mining NGO
HALO Trust.
The vehicle market in Afghanistan is over-
whelmingly dominated by Japanese cars, of
which the majority are Toyotas. The most
common vehicle is the Corolla sedan passenger
car (the Toyota Corolla is also one of the best-
selling passenger cars worldwide). Japanese
second-hand cars are affordable, of reasonable
quality and, significantly, spare parts for these
vehicles are easy to find. The price range shown
in Table 1 of US$3,325–6,800 for models from
1991 to 1997 compares to price ranges of US$2,575–6,325 for models of the same
age span advertised on the internet.12
Vehicles are not particularly cheap in Afghanistan by international standards,
especially given average Afghan incomes and the quality of vehicles on sale.
However, traders reported that the price of a vehicle was becoming more affordable
for Afghan customers. Prices are cheaper in Dubai, presenting an incentive for
importers. A study of purchasing power around the world in 2003 compared the
prices of a popular standard (four- to-five door) mid-range new car model in 68
cities: the price in Dubai was in thirteenth place, with a Mitsubishi Galant 2.0
costing US$13,100. The cheapest place was Bucharest, where a Dacia 1310 was
found to cost US$4,000. The cheapest cars were mostly locally manufactured

12
http://autos.msn.com/research/vip/default.aspx?make=Toyota&model=Corolla

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 Understanding Markets in Afghanistan: A Study of the Market in Second-hand Cars

models. Most expensive was Singapore, where a Korea Optima 2.0 DOHC cost
US$44,900.13
Transactions in the second-hand car market are often conducted in Pakistani rupees
– this was the case with many dealers in Kabul and even in Herat near the Iranian
border. This may reflect the fact that the Afghan car trade was previously focused to
a large extent on re-export of vehicles to Pakistan. In Mazar-i-Sharif, prices were
frequently quoted in US dollars and in Zaranj prices for cars, as for most other com-
modities, were all quoted in Iranian rials. Use of the hawala system for payments
was widely reported by importers and smaller traders.

13
UBS Wealth Management Research, 2003, Prices and Earnings, A Comparison of Purchasing Power
around the World, Zurich. Prices used the average exchange rate from mid February–end March 2003.

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Understanding Markets in Afghanistan: A Study of the Market in Second-hand Cars

5. Import routes

Figure 3. Routes for import of automotives and spare parts

Total car im ports: US$117m

Japan
Taiw an
China
Other

Figure 4. Passenger car imports by country, February 2003–February 2004

Source: Afghanistan Trade Statistical Yearbook, February 2003–February 2004, Central Statistics Office

The statistics in Figures 4–7 provide a picture of the origins of the vehicles and spare
parts imported into Afghanistan, which is consistent with what researchers observed
on the Afghan market. For example, the dominance of Japanese-manufactured

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 Understanding Markets in Afghanistan: A Study of the Market in Second-hand Cars

Total Imports: US$30m

China
Japan
Russia
Other

Figure 5. Motorbike imports by country, February 2003–February 2004

Source: Afghanistan Trade Statistical Yearbook, February 2003–February 2004, Central Statistics Office

Total Im ports: US$48m

Germany
Russia
Uzbekistan
Other

Figure 6. Truck imports by country, February 2003–February 2004

Source: Afghanistan Trade Statistical Yearbook, February 2003–February 2004, Central Statistics Office

Totall Im ports: US$86m

China
Germany
Japan
Other

Figure 7. Spare parts imports by country, February 2003–February 2004

Source: Afghanistan Trade Statistical Yearbook, February 2003–February 2004, Central Statistics Office

passenger cars and spare parts, of German- and Russian-made trucks and of Chinese
motorbikes was certainly borne out by this research. However, the statistics may not
be entirely reliable. They do not specify whether the “country of origin” means the

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Understanding Markets in Afghanistan: A Study of the Market in Second-hand Cars

country of manufacture or merely the country where the vehicle was last registered.
Moreover, only three imported buses were registered in the trade statistics for
February 2003–February 2004, of which two were from Germany and one was from
Russia. Some 382 tractors were imported during this period, of which the largest
share came from Russia (224), followed by the UK (96) and China (20). These figures
seem very low and do not appear to fit with the number of buses witnessed by
researchers on sale in Afghan markets, nor with the large number of buses registered
in 2003 according to the Afghanistan Statistical Yearbook.

5.1 The Japan/Korea–Dubai–Iran–Afghanistan route

Afghanistan is not the only country to receive
significant imports of second-hand cars from
Japan. The value of second-hand car exports
from Japan has dramatically increased since
2003. Apart from the popularity and afford-
ability of Japanese cars, the Japanese have also
come to dominate exports of used cars because
the other big car-producing regions have their
own sizable domestic used car markets. The EU
and the US both have sufficient domestic
demand for used cars to drive strong domestic second-hand car markets. Japan, on
the other hand, has a particularly strict and expensive system for testing the
roadworthiness of cars over three years old, which acts as an incentive for Japanese
drivers to buy new cars. Therefore, Japan has a surplus of second-hand cars, which
cannot be sold on the domestic market. The result is a large trade in Japanese used
cars, especially to other countries that drive on the left-hand side of the road. Some
160 auction houses in Japan sell second-hand cars to traders of many different
nationalities, including many South Asians. According to the Japanese used vehicle
export association, around half of the country’s used vehicle exporters are non-
Japanese and most are from Pakistan.14
One Tokyo auction house reportedly moves
10,000 cars per day. From January to July 2005,
Japan exported almost 350,000 used passenger
cars worth almost US$1.5b.15 The total yearly
quantity of used vehicles exported abroad, inc-
luding large consignments shipped to destina-
tions such as Dubai and Russia as well as smaller
consignments that may not appear in trade
statistics, is thought to be around one million.
Automotives analysts have suggested that these
exports may include the significant number of vehicles stolen in Japan every year.
According to some analysts, the number of cars stolen in Japan and smuggled abroad
by crime syndicates could be as many as 60,000 per year.16
Japanese and Korean vehicles are exported by traders to vast showrooms in Dubai,
from where they are sold to key markets in the developing world, especially South

14
Tomoko Otake, “Foreigners dominate used vehicle export trade in Japan”, The Japan Times, 3 June
2004
15
Japan Ministry of Finance trade statistics
16
Otake, 2004

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Asia and East Africa. One Pakistani dealer in a Japanese auction house told a
Japanese newspaper that he had purchased 24 vehicles, including the Toyota HIACE
and Toyota Corolla that day. The trader went on to describe his business:
“The money is great,” Ali said, adding that his profit margin averages 10 to
20 percent. His company, Alibaba International, has 19 employees and rakes
in 700 million yen (US$6m) in sales per year. He also has his own showrooms
in Tanzania and Dubai, where he travels six or seven times a year.17

Another article traced the journey of one Corolla station wagon that became part of
the Japanese used vehicle export trade:
Three years ago, Michiya Ogawa bought a new Toyota Corolla station wagon
for $15,800...A year later, (he) got in an accident and sold the damaged car.
Since then, his white Corolla wagon has traveled 7,000 miles around the
world, first to a massive used car market in the deserts of Dubai and now to
the rugged streets of Nairobi, Kenya. Its new owner, 30-year-old Wilfred
Gathai, bought the car for $3,400 to deliver fresh fruits and vegetables.18

Dubai has relatively recently become a key

conduit for Japanese and Korean cars destined
for the developing world. In 2000 Dubai estab-
lished a sprawling second-hand vehicle market
in the desert near the airport, after witnessing
the growing trade in second-hand cars in the
neighbouring Emirate of Sharjah. As many as
700 cars per day are reportedly sold in the
Dubai market, known as Ducamz. They are
bought by traders from Afghanistan, Russia,
East Africa and Iraq, where the trade in used cars has grown since the fall of Saddam
Hussein, whose regime had restricted their import.
Many Afghan importers reported that after vehicles had been procured in Dubai they
are loaded onto containers to be shipped to Bandar-e-Abbas on the Iranian Gulf
coast. From there they are transported overland, often still in containers or loaded
on trucks, to Islam Qala on the border with Afghanistan, just outside Herat. The
customs office at Islam Qala told researchers that about 80–100 vehicles passed
through this border point every day. The number of vehicles coming through other
ports, such as Zaranj, may increase, especially given the recent renovation of the
bridge at Zaranj which makes the border crossing navigable by road.

17
Otake, 2004
18
“How Japan’s second hand cars make their way to the third world”, Wall Street Journal, 1 August
2004

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5.2 Trafficking of vehicles and spare parts over the Pakistani

border

Vehicles
All interviewees confirmed that the past decade had seen strong trade in second-
hand vehicles destined to be smuggled into Pakistan, but that this trade had been hit
by the ban on right-hand drive vehicles in Afghanistan. Right-hand drive vehicles
were previously included on the list of goods that could be transported from
Pakistan into Afghanistan duty free under the Afghan Transit Trade Agreement
(ATTA). However, they were removed from this
list in mid 2004 after Afghanistan banned the
import of right-hand drive vehicles.19 Thus, the
ban on right-hand drive vehicles has also hit the
business of re-exporting vehicles from Pakistan
into Afghanistan and back into Pakistan.
Pakistan has officially imposed restrictions on
the import of second-hand vehicles since 1994,
to support its own manufacturers. Vehicles
found to be imported illegally into Pakistan are
impounded by Pakistani authorities, and this has meant that smuggling is concen-
trated in the poorly policed border areas of the NWFP. There is also some evidence
that vehicles continue to be smuggled across other porous sections of the Pakistani
border. Foreign vehicle manufacturers have assembly factories in Pakistan and some
of these vehicles cross the border in the other direction, ending up in Afghanistan.
However, since buying a vehicle in Pakistan is more expensive than in Afghanistan,
there is little financial incentive to legitimately export second-hand vehicles from
Pakistan to Afghanistan.

Spare parts
If the trafficking of complete cars across the Afghanistan–Pakistan border has
diminished in the last two years, the trade in spare parts and tyres remains robust
and has a long history dating back 30 years. The comparatively high Pakistani tariff
on imports created an incentive for Pakistani and Afghan traders to import goods to
Afghanistan under the duty free ATTA and then to re-export them to Pakistan. Spare
parts were part of this re-export trade until some categories of spare parts were
excluded from the ATTA by Pakistan. This resulted in fewer spare parts entering
Afghanistan from Pakistan, and more from Iran. The pattern of smuggling spare parts
into Pakistan was also changed, with more spare parts coming from Iran through
Afghanistan and then into Pakistan, as opposed to the Pakistan–Afghanistan–Pakistan
route.
As shown in Figure 7, most spare parts imported into Afghanistan are from Japan,
and these follow the same route into Afghanistan as complete cars — via Dubai,
Bandar-e-Abbas and Herat. Both new and second-hand spare parts are delivered in
containers purchased on order by large importers, some of whom are also involved in
the import of complete cars. Small buyers often buy from these large importers,

19
“More Afghan border posts likely”, Daily Times (Pakistan), 31 August 2004
[http://www.dailytimes.com.pk/default.asp?page=story_31-8-2004_pg5_6]

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sometimes on credit which allows them to pay for the parts after they have been
sold.
The trafficking of spare parts through Afghanistan to Pakistan makes use of both the
Kandahar–Quetta highway and the Jalalabad–Peshawar highway. Some dirt tracks
along the way are also reportedly used to avoid check-posts. Small-scale individual
smugglers are known as lagharian or karaya dar, or “unregulated commission
agents”. These smugglers earn a flat rate of 600–1,500 Pakistani rupees (US$10–25)
to cross the border and deliver smuggled merchandise to buyers on the other side.
They are also provided with money to cover bribes for officials on either side of the
border. Large and well-connected smugglers can afford to transport spare parts in
trucks along main highways by paying bribes.
The largest market for spare parts in Afghanistan is in Weish, along the Kandahar–
Quetta highway, near the border on the Afghan side. This town has a significant
number of spare parts shops which are organised into “markets”, the biggest of
which is Kakar Mandi. Sales from these markets could be in the order of hundreds of
millions of dollars per year. Exports to Pakistan are thought to account for most of
this trade, but increased demand in Afghanistan has increased the share of domestic
trade conducted in these markets. From Weish, vehicles are smuggled into Pakistan
over the border, especially through Chaman, and until the recent counter-terrorist
operations in Waziristan, through Angor into the FATA. The other large market used
for export into Pakistan is in Torkham near the border on the Jalalabad–Peshawar
highway. Containers of spare parts brought from Japan via Dubai to Herat are often
transported straight to this market in Torkham. Traders report that this is a particu-
larly popular route for diesel and petrol engines.20

5.3 Imports from Europe, Russia, China and Central Asia

Although most vehicles come to Afghanistan via Dubai and Bandar-e-Abbas, other
import routes are also used and there is some evidence that these routes are
becoming more popular since the ban on right-hand drive vehicles. Most European
vehicles on the market in Afghanistan are German. Many German families buy new
cars rather than repairing old ones, and the strict and relatively expensive procedure
for scrapping old cars leads many Germans to dispose of their old cars by selling
them to second-hand vehicle dealers. As a result, Germany is a major exporter of
second-hand vehicles and although many of these vehicles are sold to European
countries (particularly eastern European transition countries), some are also
exported to the Middle East and to Africa. Vehicles from Germany are usually driven
overland and enter Afghanistan either through Islam Qala, as with vehicles from
Dubai, or through one of the border crossings with Central Asia. Both German-made
vehicles and other makes, notably the ubiquitous Toyota, are imported from
Germany this way. The benefit of Japanese vehicles imported from Germany is that
they are left-hand drive. As with Japan, there is some concern that some vehicles
imported into Afghanistan may be stolen vehicles from Germany, where some 45,000
vehicles are stolen each year.

Cars
Russian second-hand cars, such as Volgas and Moskvitches, can also be observed on
the road in Afghanistan. This research did not reveal large numbers of second-hand

20
Khan, 2004

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vehicles from the former Soviet Union being imported into the country, but, as
mentioned, Kamaz trucks were certainly available at second-hand vehicle markets.
Some Russian and Central Asian vehicle manufacturers have contracts to import new
vehicles to Afghanistan. The Russian truck manufacturer Gorky Automobile Plant
(GAZ) has offices in Kabul, as does the Indian truck manufacturer TATA. Central
Asian-manufactured vehicles have also been given as aid to Afghanistan. Vehicles
produced in the former Soviet Union enter the country through the northern border
crossings with Turkmenistan, Uzbekistan and Tajikistan.

Motorbikes
The availability of Chinese motorbikes on the Afghan market reflects the significant
growth of Chinese motorbike manufacturing over recent years. China now produces
half of all motorbikes in the world. China’s market share has grown particularly in
developing countries, as the average price of a Chinese motorbike worldwide has
fallen from US$700 in the late nineties to US$200 now. This makes Chinese bikes
significantly cheaper than their Japanese equivalents.21 Traders reported that
Chinese motorbikes were ordered directly from their manufacturers and then
imported in containers via Bandar-e-Abbas and Islam Qala (like their Japanese equiv-
alents). The opening of the bridge connecting Iran to Zaranj in Nimroz Province has
also allowed consignments of motorbikes to be transported via this route. Most
Japanese motorbikes on the market were second-hand Hondas.

5.4 Transport of vehicles

Vehicles are shipped from Dubai to Bandar-e-Abbas using commercial shipping. Once
in Iran, many importers employ Iranian transport facilities to bring the vehicles,
often still in sealed containers, to the Afghan border. Here the vehicles are
unpacked in order to go through customs inspection. Importers in Kabul, who were
involved in buying vehicles both directly from Dubai and from Herat, reported that
they had arrangements with “transport associations”, which transported the vehicles
they bought from Herat to Kabul. After the engine and chassis numbers of the
vehicles they had ordered had been faxed to them, they employed these transport
unions to transport the vehicles to Kabul. The vehicles are often driven individually,
employing a number of drivers. One importer related that individual vehicles,
especially new ones ordered directly from the manufacturer, were sometimes
brought by plane.

21
John Hagel, “The Shifting Industrial Landscape: Rethinking Products”,
http://www.optimizemag.com/article/showArticle.jhtml?articleId=159905025&pgno=3

22 Afghanistan Research and Evaluation Unit

 Understanding Markets in Afghanistan: A Study of the Market in Second-hand Cars

6. Government regulation
Government regulation and taxation of the second-hand vehicle market is primarily
the responsibility of customs offices, the Ministry of Finance, and the Traffic Depart-
ment of the Ministry of Transportation, although many agencies can be involved in
the registration of vehicles for international organisations.

6.1 Customs
Customs representatives at Islam Qala reported that they inspect the paperwork
showing the origin of vehicles and waybills, while also checking that the frame and
engine numbers match each other and match the documentation. They reported that
they could process documents for up to 200 vehicles in a day. After checking docu-
ments, vehicles are referred to the customs office in Herat, where duties are paid. A
database based on market information from Afghanistan and abroad is used to
decide the value of imported vehicles and spare parts. There is no pre-declaration of
the value of goods by importers. This sometimes leads to disputes between
importers and customs over the latter’s valuation of the goods. Vehicles are taxed at
between 10 and 16 percent, according to model and year. Spare parts are taxed at a
lower rate than complete cars, with the rate varying according to the type of spare
part (the average rate is 5 percent). Trucks and buses are taxed at a rate of 2.5
percent. It is unclear what, if any, testing of quality takes place during customs
processing of vehicles.
Right-hand drive vehicles have been impounded by customs since their import was
banned in 2004. This was a cause of considerable complaint from a number of
importers, who reported that they owned right-hand drive vehicles that were now
stuck in the customs compound in Herat. The Traffic Department in Kabul told
researchers that some right-hand drive vehicles had been released after protests by
importers. Importers also complained that the process of extracting legitimately
imported vehicles from customs could take weeks. However, importers said this did
not prevent them from doing business, and areas where vehicles are stored while
they are undergoing customs procedures, such as the border area at Islam Qala or
inside the customs compound in Herat, are often used as “markets” for buying and
selling cars. Here a trader can buy or sell a car before it has passed through the
customs and registration process.
Some importers said that they had sometimes been forced to pay customs taxes on
imported vehicles twice: once in Herat and once in Kabul. The origin of this com-
plaint was unclear. Vehicles need to be taken to Kabul Province customs where they
have their documents checked and become registered in Kabul. It is possible that
during the period when Ismail Khan was governor of Herat, and some customs duties
from Herat were not reaching central government, Kabul customs may have
compensated for this by charging duties on vehicles for which duties had already
been paid in Herat.
Researchers heard reports of nepotism and patronage in customs appointments at
border ports and in provincial capitals – positions which could provide rent-seeking
opportunities for those inclined to take them. Enforcement of proper customs
procedures is generally problematic and some have suggested that differential tax
rates and tax exemptions are being granted to favoured traders, in some cases by
those who lack the authority to do so.

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Understanding Markets in Afghanistan: A Study of the Market in Second-hand Cars

6.2 Registration
Most vehicles are registered in Kabul, although the Traffic Department does have
provincial offices in Herat, Nangarhar and Balkh that can register vehicles. Since
April 2005, the Traffic Department reported that almost 17,000 vehicles had been
registered in Kabul and only 856 had been registered in other provinces. In order to
register a car, the owner is required to take import and customs documents to the
Kabul customs offices to be checked. At this point the owner brings the vehicle to
the Traffic Department where the vehicle itself is inspected.
Owners wanting to register vehicles in other provinces need to bring their vehicles to
the Kabul Traffic Department to obtain permission to register them elsewhere. The
Traffic Department suggested that this was one reason why so many vehicles were
registered in Kabul, as it was easier for owners to register in Kabul even if they
planned to use the vehicles in other provinces, thus avoiding the extra bureaucratic
step of registering locally. Some traders and bargainers reported that they could
commission a facilitator to obtain registration for a vehicle on a customer’s request.
They claimed that getting a licence for a vehicle could take from 20 days to one
month.
The extent to which the Traffic Department is able to ensure the road safety of
second-hand vehicles is uncertain. It is not clear that the department has the
facilities to check whether reconditioned vehicles have been involved in accidents,
or whether speedometers have been altered to show a lower mileage reading.
Traffic Department officials reported that they did not possess the facilities to check
whether a vehicle might have been stolen in its country of origin.
The Traffic Department is also responsible for issuing driving licences. The main
office in Kabul issues international licences and Afghan licences are also issued in
provincial capitals. Vehicles are checked every year when licences are renewed, but
it is unclear how rigorous these checks are, or how well enforced the yearly inspec-
tion is in practice.

6.3 Customs and registration process reported by INGOs

International NGOs reported that vehicles procured on international markets could
take a long time to arrive at their offices even after they had entered Afghan
territory, due to bureaucratic processes at customs and registration. One procure-
ment officer reported that a vehicle bought abroad and shipped to Torkham via
Karachi had been kept in customs for six months. Pressure from the former Minister
of Planning for NGOs to procure vehicles on the domestic market had complicated
the process of extracting vehicles from customs and processing their registration.
The steps followed from a vehicle’s arrival at customs were described as follows:
• Details of the car given to the Ministry of Economy (MoE – formerly the Ministry
of Planning);
• MoE then asks the Ministry of Commerce (MoC) to check whether the product is
available on local markets;
• If not available locally, MoE processes a letter to the Ministry of Finance (MoF),
which, in turn, provide a letter to customs;
• After this clearance document has been obtained, a letter is written to the
Ministry of Interior (MoI), asking for registration of the vehicle;

24 Afghanistan Research and Evaluation Unit

 Understanding Markets in Afghanistan: A Study of the Market in Second-hand Cars

• The Traffic Department of the Ministry of Transportation sends a representative

to customs to check that the vehicle meets safety standards, and that it is a left-
hand drive vehicle;
• At this point the vehicle can be taken from customs, but cannot be driven until
the registration plates have been collected from the Traffic Department.
On more than one occasion, researchers were shown several sheets of official papers
containing a large number of stamps and signatures to illustrate the complexity of
the present procedure. The number of steps involved in this process currently allows
significant opportunities for corruption and bribe-taking. Both traders and INGOs
were in agreement that there was great need for streamlining the process of clear-
ing vehicles through customs and registering them in Afghanistan.

6.4 Quality, testing and pollution

There is serious concern that Afghanistan is becoming a dumping ground for poor
quality vehicles. Many vehicles on the market in Afghanistan are old, and, as one
trader pointed out, may in fact be third- or fourth- rather than second-hand. Old
vehicles are potentially dangerous, both in terms of roadworthiness and accidents,
and in terms of harmful emissions. In the developed world, technological progress
and stricter regulation to protect the environment have resulted in a considerable
reduction in harmful emissions from road vehicles. Older engines, combined with the
use of low-quality fuel in Afghanistan, produce more potentially harmful emissions.22
That air pollution from vehicle emissions is a potential problem in urban areas of
Afghanistan can be seen first-hand by anyone moving in Kabul’s traffic: the emission
of diesel soot from exhausts, suspected to be a carcinogen, is caused by poorly
tuned and old engines and low-quality fuel. Little research into air pollution levels in
Afghanistan has been undertaken, although in 2002 a United Nations Environment
Programme (UNEP) mission to Afghanistan carried out some air sampling at urban
sites in Kabul, Mazar, Herat and Kandahar. Increasing vehicle density in urban areas
and the use of low-grade diesel were identified as serious causes of air pollution.
High levels of polyaromatic hydrocarbons (PAH) “most likely originating from vehicle
exhaust emissions” were discovered in some areas:
The highest concentrations were detected in Mazar-i-Sharif, where analyses
show 13.6 Ng/m3. The WHO average values for urban areas range from 1 to
10 Ng/m3. Concentrations for Kabul and Kandahar were between these
values, while those for Herat were below WHO average values.23

One of the PAHs discovered in the air during this sampling process was identified as
Benzene-a-pyrene, a substance suspected of increasing the risk of lung cancer in
humans. The potential risk to human health of PAHs is increased by the presence of
dust in the air, which binds hydrocarbon particles and prevents them from escaping
into the atmosphere.24 There is a need for more research on pollution levels from car
emissions in urban areas of Afghanistan, and on the role of old engine technology in
urban air pollution. Two agencies recently established in Afghanistan may take a
leading role in this process:

22
For more information see Paterson, 2005
23
UNEP, 2003, Afghanistan Post Conflict Environmental Assessment, http://www.reliefweb.int/
library/documents/2003/unep-afg-01feb.pdf
24
UNEP, 2003

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Understanding Markets in Afghanistan: A Study of the Market in Second-hand Cars

1. The National Environmental Protection Agency (NEPA) of Afghanistan was

established in April 2005. NEPA currently has no enforcement or implementation
role as there is no environmental management law in place. However, the first
Afghan environmental law is presently under review by the Ministry of Justice
and is expected to be passed into law in the near future. Policy papers on
pollution control and on industrial and urban pollution are also under review. An
ADB project (in collaboration with NEPA) is underway to establish baseline
information on air pollution in Kabul.
2. The Afghanistan National Standardisation Authority (ANSA) within the Ministry of
Commerce is the result of the work carried otu by the National Commission for
Metrology and Standards. This body has been established with the support of the
World Bank Emergency Customs Modernisation and Trade Facilitation project and
is also part of the United Nations Industrial Development Organisation (UNIDO)
Post Conflict Assistance for Industrial Rehabilitation and Development in
Afghanistan. The ANSA will have a brief to both test and regulate consumer
products in Afghanistan, and is set to be the single national standards authority
for all domains, as specified by presidential decree.
In the face of increasing numbers of sub-
standard vehicles, some governments in the
developing world have imposed restrictions on
the import of vehicles older than a certain year.
A study of 111 countries and their policies
regarding second-hand car imports found that
61 have such restrictions. Of these, 21 have
imposed an absolute ban on the import of
second-hand cars, 23 have imposed a ban on
vehicles more than five years old and/or heavy
customs duties, and 17 have imposed a ban on imports that are more than six years
old and/or heavy customs duties.25 Some governments have also banned the import
of altered-steering vehicles. These include the Saudi authorities, whose ban on
altered-steering vehicles impacted upon the business of importers aiming to sell to
Dubai-based traders, some of whom allegedly had to have their car shipments
scrapped in Dubai.26 Since Afghanistan does not have a domestic automotives
industry, and has a continuing demand for affordable vehicles, strong restrictions
may not be appropriate in this context. Nonetheless, the market might be able to
sustain some level of restriction or, at the very least, better regulation of quality
through increased inspection, active enforcement of inspection by rejecting sub-
standard vehicles, and servicing.
Quality of spare parts and automotives services in Afghanistan is an issue that was
not directly addressed by this research, but which did emerge as a concern. Some
spare parts may be counterfeit, or they may have been taken from a vehicle that has
been stolen and dismantled or from a vehicle that has been involved in an accident.
Researchers also heard numerous tales of newer vehicles that, upon inspection, were
found to contain old engines, indicating that new vehicles are being stripped of valu-
able parts. Spare parts are subject to less inspection than complete vehicles as they
do not go through the registration process.

25
Janischewski at al, 2003, p. 41
26
Otake, 2004

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 Understanding Markets in Afghanistan: A Study of the Market in Second-hand Cars

The availability of trained mechanics is also a significant issue for motorists. Mech-
anics working for the state bus service, Melli Bus, and mechanics working for a large
NGO in Kabul told researchers that only older generations of mechanics had received
formal training from Kabul Polytechnic or from the now defunct technical schools.
On-the-job training and informal apprenticeships are now the main means of training
mechanics.

6.5 Steering
Since the ban on right-hand drive vehicles in July 2004, many altered-steering
vehicles have appeared on the Afghan market. Japanese vehicles for domestic use
(and therefore second-hand exports from Japan) are right-hand drive. Only Japanese
vehicles made for export to right-hand driving countries such as Germany, and then
exported from these countries as second-hand vehicles, have left-hand steering
already. There are workshops in Afghanistan capable of carrying out alteration of
steering, but since right-hand drive vehicles can no longer be cleared by customs or
registered, many steering alterations are conducted abroad, in Dubai or in Pakistan.
The Traffic Department told researchers that an advanced workshop known as
Shaheen Technical Company had been established with the backing of a foreign
investor and would shortly begin conducting alterations in Kabul. It was unclear how
the vehicles would be brought legally to Kabul under the new regulations.
Many traders reported that customers were suspicious of vehicles with changed
steering, fearing that the alterations were not properly carried out. Altered steering
also makes vehicles more expensive, adding US$1,000–5,000 to the price of a
vehicle, depending on the model. Landcruisers in general are harder and more
expensive to alter than passenger cars or vans. Vehicles with modified steering
should ideally be subject to rigorous inspection since changing the steering alone is
insufficient to make the vehicle suitable for driving on the right of the road. Other
modifications must also be carried out, such as headlight alterations to prevent
these from throwing light in the face of oncoming traffic. Altered-steering minibuses
are particularly conspicuous, as the passenger door is on the wrong side of the
vehicle.
In spite of the ban, many right-hand drive vehicles were observed on the markets in
all locations where this research was conducted. Right-hand drive vehicles contri-
bute significantly to the accident rate in Afghanistan according to the Traffic
Department, as drivers do not have complete visibility when overtaking. However,
while there are still some right-hand drive vehicles on the market, the protests of
traders and importers suggest that enforcement of the ban has at least been
successful enough to change patterns of trade in second-hand cars.

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Understanding Markets in Afghanistan: A Study of the Market in Second-hand Cars

7. Conclusions and recommendations

7.1 Harnessing trade and traders
The spare part trade and the second-hand vehicle market in general demonstrate
the existence in Afghanistan of experienced traders who have been importing goods
into and across Afghanistan for years. Traders have been actively involved in transit
trade for some time, contrary to the common impression of a post-conflict economy
as a “blank slate”. In fact, many second-hand car importers encountered in this
research have long used Afghanistan’s geographical position as a “land corridor” for
trade, even during periods of war and international isolation – sometimes shifting
from one commodity to another depending on profitability or feasibility of trade
routes.
It is not clear whether the transit trade in second-hand spare parts could be easily
brought into the formal economy, as its profitability may well lie entirely in its
evasion of taxes and regulation (one might expect it to be easier to ship second-hand
spare parts directly from Dubai to Karachi). However, the traders involved in this
informal transit trade appeared to have substantial experience in trading a variety
of goods, and with the right incentives they c be enticed into the formal economy
and become a legitimate driver of economic growth and private sector development
consistent with the vision of Afghanistan as a future hub of regional trade. The
import of cumbersome spare parts in large quantities from the Iranian coast across
Afghanistan to Pakistan shows that this part of Afghanistan’s trade “corridor” is
logistically viable, even before the full reconstruction of roads along the route. Were
the formal economy to offer incentives and opportunities for trading goods
legitimately along this route, traders who have shown such flexibility in the past
might be persuaded to grasp those legitimate opportunities.
In order to promote Afghanistan as a “land corridor” for trade, a strong trade
administration, improved security and road infrastructure are necessary, and
incentives to become involved in formal cross-border trade need to be demonstrated
to traders.
The kinds of benefits that traders stand to gain from entering the formal economy
include:
• The streamlining of cross-border, customs and registration procedures – reducing
waiting times as well as reducing informal taxes levied on trade internally and at
borders.
• Strengthening the interaction between border control agencies and between
these agencies and trading communities.
• Government negotiation of trade agreements with neighbouring countries to
open up regional opportunities for traders.
• Certified learning opportunities for transport operators, freight forwarders,
importers and exporters.27
• Stability and predictability: state-building and reconstruction can offer long-term
security, and legitimate trading removes the risk of being put out of business as
law enforcement capacity improves.

27
Reducing poverty, sustaining growth, scaling up poverty reduction (case study on trade and transport
facilitation in southeastern Europe), World Bank conference notes, Shanghai, May 2004, p. 51

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 Understanding Markets in Afghanistan: A Study of the Market in Second-hand Cars

7.2 Standards and public health

Ensuring quality and standards for Afghan consumers is critical to the Afghan recon-
struction effort. As a World Bank official recently commented:
...however impressive the flow of funds is to implement the reconstruction,
it is easily possible that an equal amount is lost because the consumers are
suffering the costs of substandard infrastructure in the areas of health,
pollution and other aspects of daily life relating to the quality of goods and
services. The losses suffered by consumers also represent losses to the
economy.28

Regulating the import of second-hand vehicles in the Afghan context will necessarily
be a balancing act between maintaining the affordability of cars and thereby
supporting the livelihoods of those working in the private transport services sector,
and ensuring that the country does not become a dumping ground for substandard
and dangerous vehicles. The following means of ensuring supply of better quality
vehicles should be considered:
• Minimal standards for vehicles and components should be set, even if these are
initially low. Testing facilities should be sufficiently equipped to test these
standards, especially for safety-critical components such as windscreens, brake
pads and headlights. Non-compliant vehicles that cannot be repaired should be
removed from the supply chain.
• Restricting imports of older models could be considered in order to establish
whether the costs of such restrictions would outweigh the benefits.
• Environmental pollution from vehicle emissions is both a medium-term and a
long-term problem for Afghanistan which requires immediate research and
planning. The creation of the Afghan National Environmental Protection Agency
is a positive step in this direction.
• Formal training for mechanics and the establishment of better vehicle
maintenance facilities would help to increase vehicle efficiency and reduce
harmful emissions.
• In the long term, Afghanistan could consider introducing emissions testing for
vehicles.

7.3 Private sector development

The second-hand vehicle market in Afghanistan provides employment for a large
number of mostly small-scale players. However, these players often make very
small, and in some cases diminishing, returns. There is limited room for movement
and innovation for many of these smaller market players, some of whom stated to
researchers that they were in debt. This is an example of the way in which lack of
access to credit can keep small market players trapped in sub-scale enterprises with
little chance of expanding their businesses.
Although there appears to be less potential for monopolistic behaviour in the
second-hand vehicle trade than in the petroleum fuel trade, it appears that traders

28
Amer Durrani (Task Manager for World Bank activities in Afghanistan), comments from a meeting with
United Nations Industrial Development Organisation staff in Vienna, October 2004, quoted in
UNIDOScope Weekly Internet Newsletter 24–30 October 2004.

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Understanding Markets in Afghanistan: A Study of the Market in Second-hand Cars

are not on a level playing field. Openness, competition and demand-driven business
development in the used vehicle market could be promoted in the following ways:
• Access to credit through banks and other financial institutions would open the
market to players who were not able to gain unofficial credit. Access to micro-
credit would allow small players to expand their businesses.
• Promotion of an effective and reliable banking system would represent a sound
means of investing money for those who have historically invested in
commodities such as vehicles. This means of investment would also benefit the
Afghan economy more generally.
• Improved procedures for buying land and securing tenure for businesses renting
accommodation would encourage the growth and expansion of small- and
medium-sized players.
• The establishment of membership-based, democratically run chambers of
commerce, especially in the provinces, should be supported.
• In addition to more effective private sector lobby groups, the government needs
to adopt a more consultative and receptive approach to its dealings with
businessmen, large and small, irrespective of their political contacts.
• Anti-competitive practices in trade should be addressed in order to ensure the
maximum realisation of the benefits of free market competition – in terms of
increased productivity and innovation for businesses, and better value for
consumers.

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 Understanding Markets in Afghanistan: A Study of the Market in Second-hand Cars

References
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Recovery. http://www.adb.org/Documents/Reports/Afghanistan/Transport/
Transport_Sector_AFG.pdf.
Burns, J. 23 November 2001. “Trucks of the Taliban: durable, not discreet.” New
York Times.
Central Statistics Office. Afghanistan Statistical Yearbook 2004.
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Government of Afghanistan (with ADB, IMF, United Nations Development Programme
and the World Bank). 2004. Securing Afghanistan’s Future: Accomplishments and the
Strategic Path Forward. p. 43.

Government of Afghanistan (with ADB, IMF, United Nations Development Programme

and the World Bank). 2004. Transport Sector: Building Connections (annex from
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Otake, T. 3 June 2004. “Foreigners dominate used vehicle export trade in Japan.”
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Understanding Markets in Afghanistan: A Study of the Market in Second-hand Cars

Recent publications from AREU

June 2004 Trading in Power: The Politics of “Free” Markets in Afghanistan, Sarah
Lister and Adam Pain
July 2004 Rethinking Rural Livelihoods in Afghanistan, Jo Grace and Adam Pain
Aug 2004 Rural Land Relations in Conflict: A Way Forward, Liz Alden Wily
Aug 2004 From Subjects to Citizens: Local Participation in the National Solidarity
Programme (NSP), Inger W. Boesen
Dec 2004 Looking for Peace on the Pastures: Rural Land Relations in
Afghanistan, Liz Alden Wily
Jan 2005 Transnational Networks and Migration from Herat to Iran, Elca Stigter
Feb 2005 Transnational Networks and Migration from Faryab to Iran, Elca Stigter
Feb 2005 Who Owns the Farm? Rural Women’s Access to Land and Livestock, Jo
Grace
March 2005 Caught in Confusion: Local Governance Structures in Afghanistan, Sarah
Lister
March 2005 Afghans in Karachi: Migration, Settlement and Social Networks, the
Collective for Social Science Research
April 2005 Transnational Networks: Recognising a Regional Reality, Elca Stigter
and Alessandro Monsutti
May 2005 Bound for the City: A Study of Rural to Urban Labour Migration in
Afghanistan, Aftab Opel
June 2005 Assessing Progress: Update Report on Subnational Administration in
Afghanistan, Anne Evans and Yasin Osmani
June 2005 Return to Afghanistan? A Study of Afghans Living in Tehran, University
of Tehran
August 2005 A Guide to Parliamentary Elections, Andrew Reynolds, Lucy Jones and
Andrew Wilder
August 2005 Emerging Trends in Urban Livelihoods, Stefan Schütte
August 2005 A Place at the Table: Afghan Women, Men and Decision-making
Authority, Shawna Wakefield and Brandy Bauer
Oct 2005 Return to Afghanistan? A Study of Afghans Living in Mashhad, University
of Mashhad
Oct 2005 Return to Afghanistan? A Study of Afghans Living in Zahedan, University
of Tehran
Oct 2005 Alternative Livelihoods: Substance or Slogan? Adam Pain and David
Mansfield

All AREU publications can be downloaded from www.areu.org.af. Hard copies are
available at AREU’s office in Kabul.

Afghanistan Research and Evaluation Unit

Charahi Ansari (opposite the Insaf Hotel and Popolano’s)
Shahr-e Naw, Kabul, Afghanistan
mobile: +93 (0)79 608 548 email: [email protected] website: www.areu.org.af

32 Afghanistan Research and Evaluation Unit