According to sources, the car sales have not been as high as now since the last five years.
The number of units sold in the year 2014-2015 is more than 150,000 which is a 30 per cent increase from the sales last year, said sources.
One of the main reason behind the increase is the introduction of car leasing and financing facilities has given rise to the increase in car sales by a multiplier effect in the country, as buying on credit has enabled consumers to experience an increase in their purchasing power.
Another factor which may also have contributed towards the rise in demand for cars is the State Bank’s decision to reduce the interest rate from 10 per cent to 7 per cent. It may also be the case that the interest that Volkswagen has shown with regards to extending their market to Pakistan is a consequence of the rise in car sales.
In previous years, when Pakistan’s car industry was booming, car rental businesses also sprang up and appeared to be feasible business options.
However, the prosperity of the Pakistani car industry was hindered by the financial crisis. As a result of which, prices followed an upward trend and the demand for cars fell. It was from 2012 that the sales of cars began to rise once again.
With the greatest number of cars being sold in the country within a month, three cars contributed to this, namely the Toyota Corolla, the Suzuki Bolan and the Ravi. The sales of the latter two automobiles doubled during 2015.