Auto financing in Pakistan continued to grow for the 16th straight month, reaching Rs345.34 billion in March, up from Rs336 billion in February.
Analysts say lower interest rates have made it easier for people to take car loans, supporting this steady increase.
Despite the rise in financing, total vehicle sales showed mixed results. Sales of cars, SUVs, pick-ups, and vans reached 15,531 units in March.
This reflects a strong 40% increase compared to the same month last year. However, sales dropped by 9% compared to February.
The monthly decline was mainly due to a significant drop in sales by Pak Suzuki, which fell by 23%.
Hyundai Nishat also reported a 9% decrease. Other car manufacturers, however, recorded growth ranging from 1% to 29% during the same period.
Overall, the auto sector has performed well this year. During the first nine months of FY2025-26, total vehicle sales reached 144,029 units, showing a strong 43% increase compared to last year.
Imports of car parts also increased, with completely and semi-knocked down kits rising to $170 million in March. The total import bill surged significantly during the fiscal year, reflecting expectations of higher demand ahead.
Experts believe that lower interest rates and rising fuel prices are encouraging some buyers to consider electric vehicles.
However, the recent drop in monthly sales was linked to fewer working days during Ramadan and Eid, along with supply chain issues.
Analysts expect gradual improvement in the coming months, although inflation and regional challenges may continue to impact short-term growth.