Auto financing rises to Rs345bn

KARACHI: Geop­oli­ti­cal tensions have not da­­mpened the hopes of new car buyers, as outstanding auto loans surged for the 16th consecutive mon­­th to Rs345.34 billion in March, up from Rs336bn in February, thanks to lower interest rates.

However, sales of cars, sports utility vehicles, pick-ups and vans totalled 15,531 units in March, up 40 per cent year on year (YoY) but down 9pc month on month (MoM) due to a 23pc MoM drop in sales of the market leader Pak Suzuki, followed by a nine per cent MoM drop in Hyundai Nishat vehicles in March. Other assemblers posted MoM growth ranging from 1pc to 29pc. This took 9MFY26 cumulative sales to 144,029 units, up 43pc YoY.

As the Middle East war got underway from Feb 28, import of completely and semi-knocked down kits by the local assemblers remained upbeat, rising to $170m in March from $157m in February, while its 9MFY26 import bill swelled by 116pc to $1.471bn YoY, signalling positive sales outlook in the coming months.

Some auto analysts predict positive momentum in auto sales during 2026, supported by lower interest rates, while rising petroleum prices have also prompted many consumers to switch to new electric vehicles in March and in the current month.

Ajeet Kumar of BMA Capital Manage­ment said the MoM decline in March auto sales was driven by fewer working days due to the Ramadan and Eid Holidays. The geopolitical climate may have also affected the industry’s supply chain, affecting sales during the period.

Expecting a gradual normalisation in auto sales with volumes recovering toward more sustainable levels, he said near-term momentum may remain subdued due to the economic fallout from the Iran-US conflict, which has heightened inflationary pressures.

Published in Dawn, April 17th, 2026