Connect with us

Business

Auto financing hits 25-month high | The Express Tribune

Published

on

Auto financing hits 25-month high | The Express Tribune



KARACHI:

Auto financing continued its upward trajectory, hitting a 25-month high of Rs286 billion in July 2025, according to the latest data released by the State Bank of Pakistan (SBP) and compiled by Topline Research.

The July 2025 figures mark a 25% year-on-year (YoY) increase and a 3% month-on-month (MoM) rise, highlighting improving consumer appetite for car purchases amid an easing interest rate environment. This is the highest level since June 2023, when financing stood at Rs285 billion.

Despite the rebound, auto financing remains 22% lower than the all-time peak of Rs368 billion recorded in June 2022, when aggressive consumer borrowing coincided with strong vehicle demand. The subsequent decline was triggered by soaring borrowing costs, import restrictions on raw materials and automotive parts, and a broader economic slowdown that severely dented car sales and leasing activity.

Analysts believe the recent turnaround reflects recovering consumer confidence, driven by declining interest rates following the SBP’s monetary easing cycle, as well as stabilisation in the exchange rate and gradual improvement in supply chains. Auto financing is finally showing signs of recovery after two years of contraction. The consistent monthly growth suggests that demand is returning, and this momentum is likely to continue if monetary easing persists.

“The recovery reflects improving consumer demand amid falling interest rates and is expected to further lift auto sector sentiment, with stronger sales and earnings outlook for listed companies,” said market experts at Topline Research. The revival in auto financing is expected to boost sentiment in the automobile sector, which has faced one of its toughest downturns in recent history. Listed auto assemblers and allied sectors, such as parts manufacturers, may benefit through improved sales volumes and a stronger earnings outlook in the coming quarters.

Industry observers caution, however, that sustained growth will depend on further cuts in financing rates, stable macroeconomic conditions, and consumer purchasing power. With auto financing back on the rise, the sector may be entering a new growth cycle, giving much-needed support to Pakistan’s struggling economy.

Commenting on the recent rise in auto financing, auto industry expert Mashood Ali Khan said that while the sector is seeing renewed momentum, several economic challenges remain.

He noted that car financing had touched Rs360 billion in 2022, and to return to that level, Pakistan would require single-digit interest rates, compared with the current 11%. “If interest rates fall further, automobile sales will definitely get a boost. However, the industry faces very difficult challenges,” he said. Khan highlighted that despite some improvement, Pakistan’s foreign exchange reserves have not grown significantly, while budgetary measures tied to the International Monetary Fund (IMF) programme are gradually increasing import pressures. He warned that although inflation has been contained, a rapid cut in interest rates could reignite price pressures in the auto sector.

“The rupee has remained stable around 280, which is positive, but sustaining this stability will be difficult if inflation rises again,” he added. Another key obstacle, according to him, is that purchasing power has not improved sufficiently, leaving a gap between demand potential and actual consumer affordability.

He also stressed the need for policy stability to restore the confidence of industrialists and investors. “Sometimes imports of used cars are opened, sometimes restricted. This inconsistency shakes business trust. Over the past two and a half years, many industrialists and skilled youth have left the country,” he remarked.

Khan emphasised that to counter the challenges from lower interest rates, Pakistan must strengthen exports, an area that requires long-term planning, incentives, and facilitation in special economic zones. He also pointed to the concerns raised by chambers of commerce in recent months over unfriendly regulations, underlining the importance of supportive policies for SMEs and industrial protection.

“The direction is right, but stability and continuity in policies are crucial,” Khan concluded.



Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Serial rail fare evader faces jail over 112 unpaid tickets

Published

on

Serial rail fare evader faces jail over 112 unpaid tickets


One of Britain’s most prolific rail fare dodgers could face jail after admitting dozens of travel offences.

Charles Brohiri, 29, pleaded guilty to travelling without buying a ticket a total of 112 times over a two-year period, Westminster Magistrates’ Court heard.

He could be ordered to pay more than £18,000 in unpaid fares and legal costs, the court was told.

He will be sentenced next month.

District Judge Nina Tempia warned Brohiri “could face a custodial sentence because of the number of offences he has committed”.

He pleaded guilty to 76 offences on Thursday.

It came after he was convicted in his absence of 36 charges at a previous hearing.

During Thursday’s hearing, Judge Tempia dismissed a bid by Brohiri’s lawyers to have the 36 convictions overturned.

They had argued the prosecutions were unlawful because they had not been brought by a qualified legal professional.

But Judge Tempia rejected the argument, saying there had been “no abuse of this court’s process”.



Source link

Continue Reading

Business

JSW Likely To Launch Jetour T2 SUV In India This Year: Reports

Published

on

JSW Likely To Launch Jetour T2 SUV In India This Year: Reports


JSW Jetour T2 Launch: JSW Motors Limited, the passenger vehicle arm of the JSW Group, is reportedly preparing to enter the Indian car market this year. It has partnered with Jetour, a China-based automotive brand owned by Chery Automobile, and the Jetour T2 SUV could be the company’s first product, according to the reports.

Media reports suggest that the launch will happen independently and not under the JSW MG Motor India joint venture. The SUV will wear a JSW badge and name, instead of the Jetour branding. The upcoming SUV will be assembled at JSW’s upcoming greenfield manufacturing facility in Chhatrapati Sambhaji Nagar, Maharashtra. 

According to the reports, the company plans to have the vehicle on sale by the third quarter of this year. With this move, JSW aims to establish itself as a standalone carmaker in India.

Add Zee News as a Preferred Source


Expected Powertrain

The SUV is likely to arrive with a 1.5-litre plug-in hybrid setup. Internationally, this hybrid powertrain is offered with both front-wheel drive and all-wheel drive options. It is still unclear which version will be introduced in India.

Design

In terms of design, the T2 is a large and rugged-looking SUV. It has a boxy and upright stance, similar to vehicles like the Land Rover Defender. Despite its tough appearance, it uses a monocoque chassis instead of a ladder-frame construction. 

Size

The SUV measures around 4.7 metres in length and nearly 2 metres in width. This makes it larger than the Tata Safari, even though it is a five-seater. A longer 7-seat version is also sold in some markets.

Price

Pricing details for India are yet to be announced. For reference, the front-wheel-drive five-seat T2 i-DM is priced at AED 1,44,000 (around Rs 35 lakh) in the UAE.

Jetour

Jetour is a brand owned by Chinese automaker Chery. Launched in 2018, it focuses mainly on SUVs and is present in markets across China, the Middle East, Africa, Southeast Asia and Latin America.



Source link

Continue Reading

Business

John Swinney under fire over ‘smallest tax cut in history’ after Scottish Budget

Published

on

John Swinney under fire over ‘smallest tax cut in history’ after Scottish Budget



John Swinney has been pressed over whether this week’s Scottish Budget gives some workers the “smallest tax cut in history” – with Tory leader Russell Findlay branding the reduction “miserly” and “insulting”.

The Scottish Conservative leader challenged the First Minister after Tuesday’s Holyrood Budget effectively cut taxes for lower earners, by increasing the threshold for the basic and intermediate bands of income tax.

But Mr Findlay said that would leave workers at most £31.75 a year better off – saying this amounts to a saving of just £61p a week

“That wouldn’t even buy you a bag of peanuts,” the Scottish Tory leader said.

“John Swinney’s Budget might even have broken a world record, because a Scottish Government tax adviser says it ‘maybe the smallest tax cut in history’.”

Raising the “miserly cut” at First Minister’s Questions in the Scottish Parliament, Mr Findlay demanded to know if the SNP leader believed his “insulting tax cut will actually help Scotland’s struggling households”.

The attack came as the Tory accused the SNP government of increasing taxes on higher earners, with its freeze on higher income tax thresholds, which will pull more Scots into these brackets.

This is needed to pay for the “SNP’s out of control, unaffordable benefits bill”, the Conservative added.

Mr Findlay said: “The Scottish Conservatives will not back and cannot back a Budget that does nothing to help Scotland’s workers and businesses.

“It hammers people with higher taxes to fund a bloated benefits system.”

Hitting out at Labour – whose leader Anas Sarwar has already declared they will not block the government’s Budget – Mr Findlay said: “It is absolutely mind-blowing that Labour and other so-called opposition parties will let this SNP boorach of a budget pass.

“Don’t the people of Scotland deserve lower taxes, fairer benefits and a government focused on economic growth?”

Mr Swinney said the Budget “delivers on the priorities of the people of Scotland” by “strengthening our National Health Service and supporting people and businesses with the challenges of the cost of living”.

He insisted income tax decisions in the Budget would mean that in 2026-27 “55% of Scottish taxpayers are now expected to pay less income tax than if they lived in England”.

The First Minister went on to say that showed “the people of Scotland have a Government that is on their side”.

Referring to polls putting his party on course to win the Holyrood elections in May, the SNP leader added that “all the current indications show the people of Scotland want to have this Government here for the long term”.

Benefits funding is “keeping children out of poverty”, he told MSPs, adding the Budget contained a “range of measures” that would build on existing support.

The First Minister said: “What that is a demonstration of is a Government that is on the side of the people of Scotland and I am proud of the measures we set out in the Budget on Tuesday.”

Meanwhile he said the Tories wanted to make tax cuts that would cost £1 billion, with “not a scrap of detail about how that would be delivered”.

With the weekly leaders’ question time clash coming less than 48 hours after the draft 2026-27 Budget was unveiled, the First Minister also faced questions from Scottish Labour’s Anas Sarwar, who insisted that the proposals “lacks ambition for Scotland”.

Pressing his SNP rival, the Scottish Labour leader said: “While he brags about his £6 a year tax cut for the lowest paid, one million Scots including nurses, teachers and police officers face being forced to pay more.

“Even his own tax adviser says this is a political stunt. So why does John Swinney believe that someone earning £33,500 has the broadest shoulders and therefore should pay more tax in Scotland?”

Mr Swinney, however, said that many public sector workers would be better off in Scotland.

He told the Scottish Labour leader: “A band six nurse at the bottom of the scale will take home an additional £1,994 after tax compared to the same band in England.

“A qualified teacher at the bottom of the band will take home £6,365 more after tax in Scotland than the equivalent in England. There are the facts for Mr Sarwar.”



Source link

Continue Reading

Trending