KARACHI: Sazgar Engineering Works Limited (SEWL) has signed an agreement with a Chinese automobile manufacturer for the manufacturing/assembly, sales and after-sales service of passenger and commercial vehicles in Pakistan, a bourse filing said on Friday.
This vehicle assembly technical and cooperation with the renowned Chinese automaker is in addition to an agreement earlier signed with BAIC China, it added.
BAIC is one of the largest Chinese automakers that is set to make an entrance in Pakistan in partnership with Sazgar Engineering. The automaker is setting up a vehicle assembly facility in Pakistan.
“The COVID-19 pandemic has adversely affected the progress of four wheeler project; however, it is hoped that the project will be completed by the end of March 2021 and would be ready to commence trial production,” the company noted in its last financial report.
The auto sector is consistently growing and has shown an overall growth of 19 percent during the first half of the current financial year. The company’s sales volumes of three-wheelers and tractor wheel rims have also shown a growth of 47 percent and 26 percent, respectively.
The government of Pakistan is playing a significant role in providing facilitation to the businesses to recover from the negative impact of the COVID-19 pandemic and uncertain economic conditions.
In this regard, various finance schemes have been introduced through the financial institutions, which are giving fruitful results so far. However, more remedial measures are required to be taken by the government for economic stability.
The company expects continuity in the growth of the automobile sector in the third quarter of the current financial year. The commencement of vaccination for COVID-19 in the country will create a healthier working environment and would also help achieve economic stability in the country.
The company is hopeful for the rise in its sales volume and profitability during the next quarter.
The overall industry sales during the eight months (8MFY21) marked a growth of 18 percent to clock in at 1.4 million units as against 1.19 million units sold in 8MFY20.