Originally published at: https://www.pakwheels.com/blog/car-financing-declines-for-5th-consecutive-month/
After last month’s car sales charts reflecting dwindling figures, here we come with another report revealing how thumping inflation and import curbs have shattered the car financing sector in the country. And the slump is considerable – Rs. 26 billion from June 2022 to November of the same year.
Reports have informed that car financing clocked at Rs. 388 billion last month, reporting a month-on-month (MoM) decrease of 1.3%. Coming to year-on-year (YoY) charts, auto financing inched up by just 0.8%. It is pertinent to mention that it is the 5th consecutive month the sector has faced the same fate.
Last year June, car financing flaunted a figure of a whopping Rs. 414 billion, now reduced by 6.3%. Simply put, the restrictions pertaining to car loans are making a sizeable dent in auto financing. As per the industrial analyst the, 2023 could bring more pain to the industry, and the reasons are production shutdowns, increase in cost, plummeting demands, sky-rocketing inflation, etc.
Car Sales Drop By 8% Last Month
The continuous production cuts and an incessant downtrend in demand has accelerated the slump in sales. Highlighting the month-on-month (MoM) sales charts, country’s half-beating economic pulse reflects a major effect shattering the fortunes.
Pakistan Automotive Manufacturers Association (PAMA) report disclosed that car sales dropped by 8% in December 2022. The automaker sold 16,984 cars last month compared to 18,531 vehicles in November last year. Whilst year-on-year (YoY) sales declined by 38%, selling 84,088 cars in the first half of FY23 against 13,5976 vehicles sold in the corresponding period of 1HFY22.
