As the ongoing pandemic sweeps the globe, the world economy is slowly taking a plunge for the worse. Pakistan’s Auto sector is one of the worst affected in this challenging time
As China ends its lockdown and the citizens there slowly resume their daily life, the rest of the world still remains in chaos, owing to the ongoing pandemic. While the situation has affected all walks of life, the auto sector is among the worst hit. A lot of manufacturers have shut down production at their major plants, and customers have been reluctant to step out of their home and buy cars. Pakistan’s auto sector, in particular, has been hit massively.
Pakistan Auto Industry has been heavily affected by the coronavirus outbreak
According to the latest media reports, Pakistan has had over 1,000 cases of coronavirus to date. While a few provinces have declared lockdown, there has been no such announcement on a national level. Some analysts are under the impression that Imran Khan, current Prime Minister of Pakistan, is trying to maintain the country’s economy by not calling for a nation-wide lockdown. Pak’s Automobile Industry has been on a downward growth curve since 2019, and its economy, in general, has been in shambles. An enforced lockdown would lead to further dwindling sales, at which point it would go so low that it will be extremely difficult to recover afterwards.
According to sources, the annual car sales figures in Pakistan for the fiscal year 2019-20 were a little over 2.4 lakh (including passenger vehicles and light commercial vehicles), a 7 per cent decline over the previous year. If a nation-wide lockdown were to be imposed, the subsequent drop in both, the production and sales, would be cataclysmic for our neighbouring country. Sadly, there are far worse negative outcomes if this continues, endangering human lives.
All new car launches have been postponed in Pakistan
In comparison, the recovery in the Indian Automobile sector is expected to be late and slow but sure. Top analysts predict a positive growth in 2021, but the immediate future seems to be in the dark. The Supreme Court has extended the deadline of BS-IV vehicle sales till ten days after the lockdown ends in our country, but considering the gigantic stockpile of unsold cars lying at dealerships, the tiny window wouldn’t be a great help.