Last month, Sazgar Engineering Works Limited (SEWL) — assembler of Haval and BAIC vehicles in Pakistan — suspended its operations citing insufficient inventory.
In its latest notification to the Pakistan Stock Exchange (PSX), the company has restarted its operations as of today.
A Troubled Fate
Due to the ongoing situation, analysts believe that car sales will remain sluggish for the next several months. They reckon that due to a dearth of essential items and insufficient foreign exchange reserves, the government will likely keep the auto sector on the back burner.
In January, Ismail Iqbal Securities (IIS) published a report that stated:
We remain conservative on the auto sector sales for the remaining part of the fiscal year. Not only the demand will remain subdued, but the supply side will remain under serious pressure owing to the depleting foreign exchange reserves and the will to bring the Current Account Deficit (CAD) under control.
With this foresight, the chances of any significant development in Pakistan’s auto sector in the near future seem bleak.
