Car financing continued to fall for the 23rd month in a row in the calendar year 2024, down 22.5% year-on-year to Rs233 billion by the end of May from Rs300 billion in the same period last year.
This has been revealed by the latest data released by the State Bank of Pakistan (SBP).
Over the last 11 months, sales of the auto market have been impacted by rising car prices, expensive auto financing, and reduced consumer purchasing power.
As seen in FY23-24, the cost of cars remains a significant barrier to sales. Several assemblers have offered discounts on registration and other charges in the past few months, but overall growth in the sector remains limited.
Meanwhile, personal loans on credit cards increased by 28.6% YoY to Rs118 billion by the end of May. Consumer financing for house building declined by 3.5% to Rs205 billion by the end of May.
The total credit issued to end-users (consumer financing) declined to Rs801 billion in May 2024, representing a decrease of 7.4% YoY.
