Pakistan auto financing jumps 36% as bank lending fuels car sales rebound
Leasing volumes hit PKR 319 billion by December, helping lift vehicle sales 35% year on year despite a seasonal slowdown
Haris Zamir
Business Editor
Experience of almost 33 years where started the journey of financial journalism from Business Recorder in 1992. From 2006 onwards attached with Television Media worked at Sun Tv, Dawn Tv, Geo Tv and Dunya Tv. During the period also worked as a stringer for Bloomberg for seven years and Dow Jones for five years. Also wrote articles for several highly acclaimed periodicals like the Newsline, Pakistan Gulf Economist and Money Matters (The News publications)
Auto financing in Pakistan rose sharply to PKR 319 billion by the end of December, posting a 35.5% year-on-year increase from PKR 235 billion a year earlier, as consumers increasingly relied on bank leasing to purchase new and used vehicles.
Personal loans for house building also recorded growth, rising 10.3% year on year to PKR 220 billion, compared with PKR 200 billion in December 2024.
Credit card lending showed an even stronger expansion, surging 30.5% to PKR 182 billion from PKR 139 billion in the same period last year.
Auto sales totaled 13,280 units in December, marking a 35% increase from a year earlier but a 14% decline from November, according to industry data. Analysts attributed the month-on-month drop to year-end seasonality, as buyers delayed purchases until the new year to secure registration in the next calendar year. On a year-on-year basis, sales rebounded on a low base and improving demand.
Tractor sales fell sharply to 3,399 units in December, down 52% year on year and 7% month on month, reflecting a high base from deliveries under the Green Tractor Scheme in December 2024.
Indus Motor Co. posted sales of 2,312 units in December, up 40% from a year earlier but down 40% from November. Sales of the Corolla, Yaris and Cross models jumped 83% year on year to 2,116 units, while Fortuner and Revo sales rose 61% to 196 units. The company’s market share remained flat at 17%.
Honda Atlas Cars recorded a strong recovery, with sales climbing 75% year on year to 1,943 units. Civic and City sales increased 79% to 1,739 units, while BR-V and HR-V volumes rose 46% to 204 units. Honda’s market share improved by 3 percentage points to 15% in December.
Sazgar Engineering Works sold 1,165 Haval units during the month, down 25% from November, a decline attributed largely to seasonal factors. The company’s three-wheeler sales dropped 44% month on month to 974 units.
Overall, the automotive industry recorded sales of about 13,300 units in December, down 14% from the previous month but up 35% from a year earlier, according to the Pakistan Automotive Manufacturers Association. In the first half of fiscal year 2026, cumulative auto sales rose 46% year on year to 88,300 units.
Industry participants said the annual growth in sales was supported by new model launches and improving macroeconomic conditions, including easing inflation and lower interest rates, which helped revive auto financing.
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