Karachi March 12 2025: Pakistan’s passenger car sales growth slowed sharply to 11.4% year-on-year in February, a significant drop from the robust growth of over 50% recorded between July 2024 and January 2025.
According to industry data, total passenger car sales stood at 8,869 units in February, compared to 7,955 units in the same month last year. Despite the slowdown, cumulative sales for the July-February period remained strong, rising 44.6% to 67,135 units.
The decline in growth comes despite aggressive monetary easing by the State Bank of Pakistan (SBP), which slashed policy rates from 22% to 12% over the past eight months. However, auto financing remains constrained, with SBP maintaining a financing cap of PKR 3 million per car.
“Auto financing numbers are improving M/M, but the PKR 3 MN financing cap (which is here to say as per SBP’s Governor comments) is likely to be a limiting factor to volumetric growth” states Hamdan Ahmed analyst at Optimus Capital.
“IMF is also demanding an imposition of carbon tax, which, if implemented, will increase the already high vehicles’ prices” Ahmed added.
In contrast, the jeep and pickup segment saw impressive growth, surging 82% year-on-year in February to 3,202 units. Sazgar Haval emerged as the top-selling brand, with 877 units sold.
