KARACHI: Despite a month-on-month decline in auto sales, outstanding car loans rose for the 21st consecutive month to Rs393.3 billion in August, up from Rs386.3bn in July, according to data released by the State Bank of Pakistan (SBP).
Sales of cars, light commercial vehicles, pick-ups and vans clocked in at 15,558 units in August, up by 11pc year-on-year (YoY) but declined 21pc month-on-month, bringing cumulative sales to 35,376 units in 2MFY27, a surge of 41pc year-on-year.
Confusion over the new auto policy, which, according to a brokerage house analyst, has led to a MoM sales fall, while an uncertain regional atmosphere was also affecting the supply chain.
As the auto sector remains a vital organ of the national economy, Pakistan Automotive Manufacturers Association (PAMA) has urgently appealed to the government to announce the next auto policy to clear the fiscal fog, protect manufacturing capital and restore consumer confidence before these monthly declines turn into a permanent recessionary trend.
Indus Motor Company’s (IMC) annual report FY26 said Pakistan’s existing auto financing limits and repayment tenors remain relatively conservative compared with regional markets, constraining vehicle affordability for a large segment of prospective buyers.
IMC said that a review of the current financing framework, including enhancement of the maximum financing limit from Rs3 million to Rs10m and extension of the maximum financing period from three years to six years, could improve consumer affordability, broaden access to vehicle financing and support sustainable growth in domestic demand.
A private banker said that for used cars, customers can avail financing for locally assembled models from 2018 onward. For example, if a buyer avails a Rs1.5m loan for an old Suzuki Mehran, then he will have to pay a 50 per cent down payment of the car value and the rest in a three-year instalment plan.
BYD’s first vehicle
BYD, in partnership with Mega Motor Company (MMC), unveiled its Sealion 6 model on Friday at Pakistan Auto Show 2026 in Lahore.
The model is planned to become BYD’s first locally assembled vehicle in Pakistan, with production targeted to begin in Q4 2026, a press release says.
“Pakistan has shown strong potential for new energy mobility, and the response to BYD since our entry into the market has reinforced our confidence in the country,” said BYD Pakistan Country Head Lei Jian.
Published in Dawn, September 19th, 2026
