{
  "id": 15333803,
  "title": "Auto loans rise despite sales slump",
  "url": "https://urgent.news/2026/10/18/auto-loans-rise-despite-sales-slump",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-18T01:39:42.000Z",
  "source": {
    "name": "Dawn Business",
    "slug": "dawn-business",
    "url": "https://www.dawn.com/news/2037908/auto-loans-rise-despite-sales-slump"
  },
  "original_language": "en",
  "account": "Car loans increased in September for the 22nd straight month to Rs407 billion, according to data from the State Bank of Pakistan. Car assemblers experienced a 12% decrease year-on-year and 3% month-on-month drop in sales to 15,104 units, with uncertainties surrounding the new auto policy policy and confusion over hybrid vehicle taxes contributing to the decline. However, overall auto sales in the first quarter of fiscal year 2027 rose by 19% to 50,480 units.\n\nMohammed Sohail, Chief Executive of Topline Securities, expects auto financing to rise although more slowly due to uncertainties surrounding the new auto policy and rising borrowing costs, with KIBOR (Karachi interbank offered rate) rising in recent weeks. The central bank kept the policy rate unchanged at 11.5% at the latest Monetary Policy Committee meeting on September 14. The State Bank may raise the policy rate by 50 basis points to counter prolonged inflationary and external shocks, according to a recent report by Topline Securities.\n\nA banker handling auto loans expects car financing to improve further from November, citing the expansion of the car segment due to increased consumer confidence, greater trust in Chinese-made vehicles, the launch of new models, and new brands entering the market. A calm period in sales is expected in the coming months due to the significant increase in the import of semi- and completely knocked-down kits (SKD/CKD) by assemblers.",
  "summary": "KARACHI: Despite a sales slowdown, outstanding car loans rose for the 22nd consecutive month to Rs407 billion in September from Rs393.3bn in August, data released by the State Bank of Pakistan (SBP) showed. Assemblers saw a 12 per cent year-on-year and 3pc month-on-month drop in sales of cars, SUVs, pickups and vans to 15,104 units in September, owing to uncertainties over the delay in the new…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Dawn",
        "title": "Auto loans rise despite sales slump",
        "url": "https://urgent.news/2026/10/18/auto-loans-rise-despite-sales-slump-15336539",
        "published": "2026-10-18T01:39:42.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}