Auto loans rise despite sales slump

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Cite

Khan, A. S. (2026, October 18). Auto loans rise despite sales slump. Dawn. https://www.dawn.com/news/2037908/auto-loans-rise-despite-sales-slump

Dated from the outlet's own feed. Check the original for its byline.

Dawn · collected 2026-10-18 · by Aamir Shafaat Khan

Quick Summary

Outstanding car loans in Pakistan increased to Rs407 billion in September from Rs393.3 billion in August, marking the 22nd consecutive month of growth despite a 12% year-over-year and 3% month-over-month decline in auto sales. The decrease in sales is attributed to uncertainties over the new auto policy and confusion regarding GST rates on hybrid vehicles. Analyst Mohammed Sohail from Topline Securities predicts that while car financing will continue to rise, it will do so more slowly due to rising borrowing costs and potential further interest rate hikes by the central bank.
Written locally by qwen2.5:14b on 2026-10-18, using this article's own text rather than the other coverage of the same event (that is the story summary below).

AI analysis runs on qwen2.5:14b, locally

Story summary

Despite a decline in car sales, outstanding auto loans in Pakistan increased to Rs407 billion in September from Rs393.3 billion in August, marking the 22nd consecutive month of growth according to data released by the State Bank of Pakistan (SBP). Car assemblers reported a 12% year-over-year and 3% month-over-month drop in sales to 15,104 units in September due to uncertainties over the new auto policy and confusion regarding the general sales tax on hybrid vehicles. However, cumulative auto sales for the first quarter of fiscal year 27 rose by 19% to 50,480 units. Topline Securities predicts that despite rising borrowing costs and higher KIBOR rates, auto financing will continue but at a slower pace amid ongoing global geopolitical uncertainties.

Written for “Auto Loan Growth Surprises” on 2026-10-18, grounded in this article and the 0 other(s) covering the same event.

Story

📰 Auto Loan Growth Surprises
Economy/Business · 1 article(s) covering the same event.

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Claims extracted
9
sentences that state something as happening or true
Uncertain
11%
1 of 9 hedged ("reportedly", "may", "according to")
Leaning
not political
takes no side on a contested political question
Publisher signals
71/100
Dawn's corrections and hedging, across everything collected from it. Not a measure of accuracy.
Outlets on this story
1
Economy/Business
Same framing elsewhere
1
articles that frame the event the way this one does
Analyzed 2026-10-18 · how these are computed

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Publisher

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Running correction rate · 3 correction(s)
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Who wrote this

Aamir Shafaat Khan
5 article(s) here · 1 carrying a prediction
🔮 Topline Securities, in its recent report, said that given the ongoing uncertainty over the global geopolitical situation, its impact on the global energy supply chain, and rising inflation expectations amid elevated oil prices and food inflation, “the State Bank may raise the policy rate by 50bps to help mitigate any prolonged inflationary and external shock.”
2026-10-18 · assertive framing · Auto loans rise despite sales slump
🔮 Consumers continue to see price fluctuations in flour ahead of wheat imports, but the federal and provincial governments are not ready to take serious notice, as the new crop from Sindh and Punjab will arrive in March to May.
2026-10-08 · assertive framing · Flour prices raised by Rs14 per kg
🔮 HACL said the new prices are for a limited time and would be offered on limited stock.
2026-09-26 · assertive framing · Hybrid vehicle prices slashed
🔮 Chery Q launch Chery Master Pakistan (CMP) on Saturday said it will launch the all-electric Chery Q at the Pakistan Auto Show (PAPS) on Sept 18 as electric vehicles continue to gain ground in the country’s automobile market.
2026-09-06 · mixed framing · $150m BYD plant launch in Sindh delayed again
Also by Aamir Shafaat Khan
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2026-10-08 · Dawn
Honda Atlas ends BR-V production
2026-09-30 · Dawn
Hybrid vehicle prices slashed
2026-09-26 · Dawn
$150m BYD plant launch in Sindh delayed again
2026-09-06 · Dawn
Nothing else under this byline is closely related to this article, so these are simply their most recent.

Topics

KARACHI Monetary Policy Committee SBP Topline Securities the State Bank of Pakistan

Subjects

KARACHI GPE · 2× Topline Securities ORG · 2× Chinese NORP · 1× Dawn ORG · 1× Mohammed Sohail PERSON · 1× Monetary Policy Committee ORG · 1× SBP ORG · 1× the State Bank ORG · 1× the State Bank of Pakistan ORG · 1×

Narrative

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 auto policy, followed by confusion over the general sales tax (GST) on hybrid vehicles, which was later settled at 18pc for vehicles up to 2,000cc, down from 25pc.
framing: assertive · carried by 1 article(s) · first seen 2026-10-18
🔮 Topline Securities, in its recent report, said that given the ongoing uncertainty over the global geopolitical situation, its impact on the global energy supply chain, and rising inflation expectations amid elevated oil prices and food inflation, “the State Bank may raise the policy rate by 50bps to help mitigate any prolonged inflationary and external shock.”
2026-10-18 · Dawn
Auto loans rise despite sales slump · assertive framing

Claims (9 extracted, 1 hedged)

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. asserted
data → rise → Pakistan
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 auto policy, followed by confusion over the general sales tax (GST) on hybrid vehicles, which was later settled at 18pc for vehicles up to 2,000cc, down from 25pc. asserted
which → see → 25pc
However, cumulative auto sales rose by 19pc to 50,480 units in 1QFY27. asserted
sales → rise → 1QFY27
Topline Securities Chief Executive Mohammed Sohail said auto financing is likely to rise, but more slowly, amid uncertainty over the new auto policy and rising borrowing costs, as KIBOR (Karachi interbank offered rate) has edged higher over the last few weeks. asserted
KIBOR → say → weeks
Auto financing depends on the interest rate. asserted
financing → depend → rate
At the last Monetary Policy Committee meeting held on Sept 14, the central bank kept the policy rate unchanged at 11.5pc. asserted
bank → hold → 11.5pc
Topline Securities, in its recent report, said that given the ongoing uncertainty over the global geopolitical situation, its impact on the global energy supply chain, and rising inflation expectations amid elevated oil prices and food inflation, “the State Bank may raise the policy rate by 50bps to help mitigate any prolonged inflationary and external shock.” uncertain
Bank → say → shock
A banker dealing with auto loans said that car financing will improve further from November, as the car segment is expanding due to rising consumer confidence, greater trust in Chinese-made vehicles, the launch of new models, and the entry of new brands into the market. asserted
segment → deal → market
The next few months appear calm in terms of sales, given the massive rise in the import of semi- and completely knocked-down kits (SKD/CKD) by the assemblers. asserted
months → appear → assemblers
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