In 2025, Papua New Guinea (PNG) is experiencing a marked import shift toward smaller and more efficient vehicle models. Economic considerations, import duties, and challenging terrain are reshaping preferences for compact practicality over large, fuel-thirsty vehicles.
Economic and Regulatory Drivers of the import shift
High Import Duties Affecting Vehicle Choice
PNG imposes substantial duties on imported vehicles—60% for personal-use engines below 2700 cc, and up to 110% for larger engines. Add a 10% GST, and the total cost of importing big, inefficient cars soars. These financial pressures are fueling an import shift toward models that minimize cost while maximizing value.
Logistics and Infrastructure Influence Demand
With rugged terrain and limited road networks, many urban buyers favor agile, fuel-efficient vehicles. Smaller imports are easier to ship, maneuver, and maintain—reinforcing the import shift trend especially in areas where fuel and parts availability can be uncertain.
Consumer Behavior and Market Response
Rising Popularity of Used Imports
Given affordability concerns, PNG continues to rely on used car imports, particularly from Japan. The absence of age restrictions allows for diverse options. Yet, increasing buyer savvy is steering demand toward well-maintained, efficient models, underpinning the import shift away from big luxury imports.
Commercial and Utility Vehicles Still Have a Role
While SUVs and pickups remain essential in logging and rural commerce, businesses are exploring smaller vans and utility vehicles for operations in urban and tight-access areas. This contributes to the broader import shift toward efficiency.
Implications for the PNG Auto Landscape
Growth of Compact Car Options
Dealerships and secondhand markets are expanding their compact offerings—fuel-friendly sedans and mini-MPVs now dominate listings. This diversification strengthens the import shift, presenting better choices for first-time and budget-conscious buyers.
Digital and Formal Sales Channels Expand Reach
Online marketplaces and organized car dealers are formalizing the buying process. Buyers are becoming more informed about total cost of ownership—fuel, import charges, and reliability—reinforcing the import shift toward smarter purchases.
Platforms like Asia Car Group’s portal make navigating these choices easier, offering insights into model specifications, import logistics, and comparative pricing amid changing trends.
Are you part of PNG’s import shift? Thinking of downsizing your ride or upgrading to a compact model? Share your experience—let’s drive PNG’s smart mobility future together!
