Pakistan’s auto financing maintained its upward trajectory in March, with outstanding car loans rising for the 16th consecutive month to Rs. 345.34 billion, compared with Rs. 336 billion in February, reflecting sustained consumer demand supported by relatively lower interest rates and improving market sentiment.
Despite ongoing geopolitical tensions, demand for new vehicles remained resilient, with car sales reaching 15,531 units in March, up 40 percent year on year, although sales declined 9 percent month on month, according to industry data.
The monthly drop was largely driven by a 23 percent decline in sales by Pak Suzuki Motor Company and a 9 percent decrease in sales by Hyundai Nishat Motors, while other automakers posted modest gains during the month.
On a cumulative basis, total passenger car sales during the first nine months of FY26 reached 144,029 units, marking a strong 43 percent increase year on year, indicating continued recovery in the auto sector amid improving financing availability and stable consumer demand.
Meanwhile, imports of completely knocked down (CKD) and semi knocked down (SKD) kits rose to $170 million in March from $157 million in February. On a cumulative basis, the import bill surged 116 percent year on year to $1.471 billion, signaling expectations of sustained production activity and continued sales momentum in the months ahead.
