Sazgar all set to introduce new energy vehicles in Pakistan 

KARACHI: The Sazgar Engineering Works (SAZEW) plans to complete its four-wheeler manufacturing expansion by March 2026 and introduce new NEV (New Energy Vehicle) models while also boosting per day production numbers.

The company will also focus on expanding its export markets (mainly three wheelers) and the local dealership network. Sazgar currently has a network of 20 four-wheeler dealers, with expansion underway as new centres in Mardan and Peshawar are set to open soon.

The Sazgar management revealed the details at its corporate briefing for analysts on Thursday to discuss the financial results for 3QFY25 and share the company’s future outlook, Topline Securities Ltd stated.

The production capacity of the company will increase from 40-50 cars a day to 90-100 cars a day after the expansion.

The monthly sales in April 2025 declined due to a road closure in Sindh amid a canal issue and adjustments related to facelift production. Management reassured that production has now returned to normal and numbers for May 2025 would be testament to that.

NEW ENERGY VEHICLES

SAZEW raised capacity from Rs4.5bn to Rs11.5bn due to higher plant costs and strategic planning to counter stagnation, support NEV development, and stay ahead with more model launches.

Regarding the facelift H6 launch at the same price with a sizable upgrade in features, the management stated that Great Wall Motors (GWM) hasn’t increased prices in a way that affects our margins.

As per management, new models and variants include the TANK, GWM Cannon, and others planned for launch in due course, Topline Securities stated.

The lead-time for delivery of HAVAL remains 2-3 months in Pakistan. This lead-time has persisted for the past 1.5 to 2 years.

Amid budget rumours, management believes the impact will be minimal as CBUs will still be out of range compared to SAZEW’s car offerings. Furthermore, even if duties are coming down on used car imports, the impact in the first two years will be minimal as there will be gradual decline in duty structure.

Greenfield benefits availed under auto policy covers only existing variants like HAVAL, and benefits are up to June 2026. Upcoming models will not be linked to greenfield policy benefit, Topline Securities went on to add.