The auto financing in Pakistan has reached PKR346 billion in October 2021, recording a surge of 44 per cent on year-on-year basis and 2.2 per cent on month-on-month basis, the latest figures released by the State Bank of Pakistan revealed.
Car financing jumped from PKR240 billion in October 2020 to PKR338bn in September 2021, the SBP figures showed.
The central bank had earlier reduced the period of auto-financing from seven to five years and decreased the debt burden ratio from 50pc to 40pc. SBP also took other decisions that included aggregate financing limit to be availed by one person from all banks not exceeding PKR3 million at any point in time and minimum down payment for auto financing increased from 15pc to 30pc.
These decisions are application to all imported vehicles and locally manufactured vehicles with an engine capacity of over 1,000ccc.
Meanwhile, the imports of new and used CBU car units have dropped to $28m in October from $36m in September 2021. Total imports of CBU units in 4MFY22 surged by 112pc to $123m from $58m in the same period in FY21.
Pak Kuwait Investment Company Head of Research Samiullah Tariq shared that the share of auto-financing in total car sales ranked between 30pc to 40pc.
“The real impact of SBP’s decision will be visible in March/April 2022 as the assemblers had been holding sizable booking of previous orders but the share of car financing by the bank is feared to go down to 20-25pc,” he added.
A number of car assemblers including Korean assemblers are giving delivery time of March to June 2022 in case a buyer makes an advance booking today.
From : pk.mashable.com