Auto Financing Growth Continues Amid Sales Upturn in Q1 FY27

State Bank of Pakistan data revealed that outstanding auto loans increased to Rs407 billion in September, marking the 22nd consecutive month of growth from Rs393.3bn in August. This rise occurred despite a sales slowdown in the sector.

Topline Securities CEO Mohammed Sohail noted that auto financing growth is expected to slow due to uncertainty around the new auto policy and higher borrowing costs, as KIBOR rates have recently climbed.

A banker reported that car financing could improve further starting in November, driven by expanding market segments including rising consumer confidence, increased trust in Chinese vehicles, new model launches, and new brand entries.