In a positive development, Car Sales in Pakistan take a massive jump

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In a positive development, Car Sales in Pakistan take a massive jump

KARACHI: Car sales in Pakistan registered the annual growth in August for the first time after a 16-month downtrend, rising 8.3% year-on-year (YoY) as lower interest rates are encouraging auto financing, analysts said Thursday.

Car sales last increased YoY in March 2019. Passenger car sales shot up from 9,126 units in the comparable period last year to 9,885 units in August.

However, they dipped 2.3% in August as opposed to July, the Pakistan Automotive Manufacturers Association (PAMA) said. Sales of jeeps, tractors, three-wheelers, and motorcycles also witnessed YoY growth.

The State Bank of Pakistan (SBP) cut policy rate from 13.25% to 7% in almost a three-month period, which analysts said led to reinvigorating auto financing.