Car Financing Declines for 25 Consecutive Months

Abdullah

20 Aug 2024

219

Car Financing Declines for 25 Consecutive Months

For the 25th straight month, car financing in Pakistan has continued to decline, decreasing by 20.1 percent year-on-year (YoY) to Rs. 228 billion by the close of July 2024, compared to Rs. 285 billion during the same period last year, as reported by the State Bank of Pakistan (SBP).

Vehicle Prices Remain a Barrier to Market Growth

Throughout the current fiscal year, high vehicle prices have been a major deterrent to sales. Despite some automakers offering discounts on registration fees and other charges in recent months, the overall expansion of the automobile sector has been stagnant.

Significant Increase in Credit Card Loans

In contrast to the downturn in car financing, personal loans obtained via credit cards experienced a notable increase, growing by 27.5 percent YoY to Rs. 125 billion by the end of July 2024.

Housing Finance Experiences a Decline

The financing of house construction through consumer loans also saw a drop, declining by 3.9 percent to Rs. 203 billion by the end of July 2024.

Overall Consumer Financing Shows a Downward Trend

In total, the amount of consumer financing—loans extended to end-users—decreased to Rs. 802 billion in July 2024, reflecting a 5.8 percent YoY decline.

Car Financing Decline Car Loan Trends Pakistan Auto Financing SBP Car Financing Report Vehicle Financing Drop Auto Loan Decline Car Market Trends Pakistan Financial Trends 2024 Car Sales Decline Car Financing Statistics

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