KARACHI (Kashmir English): The auto loans rose to Rs315.4 billion by the end of October from Rs305bn by end September, showing the 11th consecutive month of growth, according to the State Bank of Pakistan (SBP).
Auto financing is gradually moving upward to the record high of Rs368bn achieved in June 2023 amid a drop in the policy rate to 11 percent from 22 percent in June 2024.
The trend may continue in the coming months, depending on stability or further decline in interest rates, followed by growing demand for small cars, especially the Suzuki Alto 660cc and imported second-hand cars.
New entrants as well as established assemblers are launching new models in a bid to grab maximum market share, while attractive packages from banks and assemblers with interest rates below 10pc, continue to convince buyers for bank financing.
However, the existing cap of Rs3m on auto loans continues to limit higher-end financing. A 30 percent down payment requirement and shorter loan tenures — five years for vehicles up to 1,000cc and three years for smaller cars — also discourage potential borrowers.
Pakistan Auto Show
The three-day Pakistan Auto Show concluded last week showcased a wider range of locally produced vehicles and new entrants offering cleaner, greener technologies, signalling that Pakistan may soon witness meaningful growth in the EV category.
This year’s event featured 172 exhibitors, most of whom represented Pakistan’s manufacturing base. As many as 33 Chinese and six Iranian companies were also part of the Show.
Several brands unveiled new models, with MG Motors, Master Chery, Capital Smart Motors, Chawala Green, Changan Pakistan, and Suzuki introducing vehicles across multiple segments.
