January 18, 2022 (MLN): Amid higher consumer demand, auto-financing surged to Rs354billion by the end of December 2021, an increase of 38% YoY, as it was Rs262bn in Dec 2020, Central bank data showed.
Compared to the previous month, car financing volume inched up by only 1.30% from Rs349bn in November 2021 as consumers’ appetite for owning a car decreased slightly due to the higher interest rate of 9.75%.
By the end of FY21, auto-financing stood at Rs308bn compared to Rs211bn at the end of FY20, showing a growth of 46% YoY.
Similarly, the sale of passenger cars surged by 2x YoY to clock in at 24,462 units during the month of December 2021 as compared to 11,247 units sold in December 2020. This took 1HFY22 volumes to 114,765 units, recording robust growth of 71% YoY led by tax relief announced in the FY22 budget, the launch of new models, and pickup in overall economic activity.
Going by the data, for house building, banks’ financing stood at Rs143bn by the end of December 2021, a jump of 67% YoY when compared to December 2020 mainly due to mainly SBP’s measures to promote housing and construction of buildings in the country.
