Auto financing in Pakistan continued to expand for the 16th consecutive month, with outstanding loans rising to Rs345.34 billion in March from Rs336 billion in February, supported by lower interest rates.
Despite the growth in financing, total sales of cars, SUVs, pick-ups, and vans stood at 15,531 units in March, increasing 40% year-on-year but declining 9% compared to February.
The monthly decline was led by a 23% drop in sales of the market leader Pak Suzuki and a 9% decrease in Hyundai Nishat vehicles, while other assemblers posted month-on-month growth ranging between 1% and 29%.
Cumulatively, auto sales during the first nine months of FY2025-26 reached 144,029 units, marking a 43% increase compared to the same period last year.
Imports of completely and semi-knocked down kits by assemblers rose to $170 million in March from $157 million in February, while the cumulative import bill surged 116% to $1.471 billion during July–March FY2025-26.
Analysts said the rise in imports indicates expectations of stronger demand in the coming months.
They added that lower interest rates and rising fuel prices are supporting demand, with some consumers shifting towards electric vehicles.
However, the decline in monthly sales was attributed to fewer working days during Ramadan and Eid holidays, along with supply chain disruptions linked to geopolitical tensions.
Analysts expect a gradual recovery in sales volumes, although near-term momentum may remain affected by inflationary pressures and the economic impact of regional developments.
