Sazgar Engineering Expands Exports, Eyes New Models and Higher Production
KARACHI: Sazgar Engineering Works Limited (PSX: SAZEW) has announced plans to expand its three-wheeler exports to three new international markets — the Philippines, Mexico, and Afghanistan — as part of its global growth strategy.
Supply Chain and Operations
In a corporate briefing reported by Topline Securities, company officials confirmed that recent floods had only a limited impact on operations. Deliveries were slightly delayed when the Karachi–Lahore Road was closed, but overall supply chain disruptions remained minimal.
Vehicle Lineup and Margins
The company currently offers six models: four variants of the Haval H6 and two of the Jolion. Management acknowledged that margins dipped in the last quarter due to a larger share of low-margin products, though overall profitability remained above industry averages.
Rising Bookings and Production Expansion
Thanks to strong demand, delivery times have now stretched from 2–3 months to 3–4 months. The company credited its marketing team for maintaining steady bookings despite the EV adaptation levy.
Sazgar’s existing four-wheeler production capacity is 40 vehicles per day, but output has already climbed to 60 units. To meet growing demand, the automaker plans to raise capacity to 100–120 vehicles per day, with the possibility of introducing double shifts if needed.
Policy Support and Efficiency Plans
Under the government’s Greenfield auto policy, benefits for Petrol and HEV variants of Haval will remain available until June 2026, while PHEV models are excluded. To offset margin pressures once these incentives expire, the company plans to focus on higher volumes and operational efficiency. A new plant with a 5MW rooftop solar system will support this strategy.
Upcoming Launches
Looking ahead, Sazgar plans to launch two new models — TANK and Canon Alpha — by March 2026. The completely built-up (CBU) unit is expected to cost around Rs. 45 million, while a locally assembled completely knocked-down (CKD) version will be offered at a more competitive price.
Impact of Import Duties
The management added that the recently imposed 40% regulatory duty on imported used cars (up to five years old) will have minimal effect on its business, as the measure mainly targets sedans. Instead, the company expects this step to reduce competition from imports in the local market.
