Total outstanding auto loans fell to Rs 272.3 billion, reflecting a 2.1% month-on-month decline.
Data released by the State Bank of Pakistan (SBP) shows a significant downward trend over the past 15 months, with a total decline of Rs 95.6 billion. On the other hand, at the end of June 2022, the auto financing figure stood at Rs 368 billion.
The auto industry is facing a difficult period marked by periodic factory closures due to failed letters of credit (LC) and falling sales due to rising prices.
In addition, the sector faces regulatory measures aimed at curbing demand to address the current account deficit.
These challenges are further complicated by the imposition of a Rs 3 crore limit on auto loans and reduction in repayment periods, making it a complex landscape for both businesses and consumers.
In this demanding environment, the industry has had to overcome a series of obstacles, adapting its strategies and operations to cope with changing dynamics.
Despite these challenges, industry players have sought innovative solutions and adjustments to maintain stability and increase resilience to economic pressures.
Mohammed Sohail, CEO of Topline Securities, expressed his views on the situation.