Car sales increased in the reduction of the policy interest rate

Karachi:

Sales of passenger cars increased by 32.2% to 83,269 points during the first 10 months of current year compared to the same period last year due to the fall of the interest rate announced by the Pakistani Bank (SBP) and the improved buyer.

According to data published by the Pakistani Car Manufacturers Association (PAMA), sales of all vehicles, including two, three and four wheels, increased, while sales of agricultural tractors declined. Jeep-Cum-Pickups increased by 69% to 28,063 points.

At the same time, truck and bus sales increased by 88.8% to 3,261 points and by 68.6% to 624 points, respectively. In addition, motorcycle sales and Rickshaws also won momentum and increased by 30.4% to 1,227,956 points.

However, sales of agricultural tractors decreased by 35.8% to 24,832 points due to many reasons, including climate change, the substantial decline in crop efficiency, fewer profit margins for agricultural products, intense lack of water in Sindh and other elements.

Car consultant and expert Shafiq Ahmed Shaikh said: “The growing trend in the car department is only due to the reduction of interest rates by the state bank, therefore, in this context, the various banks offer good, manageable and mainly affordable plans for shoppers.

“In the past, we have seen that every time interest rates were reduced, sales increased to a good level.

He said that in the next two years, existing sales are expected to be gradually reduced by importing electric cars. The EC offers more features, a wider range of options, excellent financial access, good miles and easy access to charging stations.

In the coming years, there will be an important revolution in electric cars, charging stations and overall infrastructure. When this revolution occurs, electric cars will probably be available through attractive dose plans offered by banks and financial institutions.

Mashood Khanu analyst reported various factors contributing to positive trends in the automotive industry, including stability in Rupia against the US dollar, the gradual reduction of interest rates set by the state bank and the improved overall economy.

It predicts that this positive impulse will continue until June. Sales of cars, motorcycles, buses and trucks have increased as a result. He said the farm industry has not recovered from the agricultural policy from the latest budget.

He said there would be significant challenges for the local industry due to certain conditions of the International Monetary Fund (IMF) in the upcoming budget. The forthcoming budget for 2025-26 can play a vital role in strengthening the local car industry.