logo
#

Latest news with #SAZEW

Auto sector rebounds on demand for small cars
Auto sector rebounds on demand for small cars

Express Tribune

time11-07-2025

  • Automotive
  • Express Tribune

Auto sector rebounds on demand for small cars

Automobiles can now be registered at the time of purchase. PHOTO: FILE Listen to article Pakistan's automobile industry staged a remarkable recovery in financial year 2024-25, with total passenger car sales reaching 148,023 units, up 43% year-on-year (YoY) from 103,829 units in FY24, marking the first significant rebound after years of suppressed volumes. The recovery was fueled by improved macroeconomic conditions, reduced interest rates and the launch of new models that revived consumer confidence, according to data released by the Pakistan Automotive Manufacturers Association (PAMA). The momentum continued into June 2025 as monthly sales came in at 21,773 units, a 36-month high, reflecting a 47% month-on-month (MoM) and 64% YoY increase. "In June 2025, automobile sales surged to a 36-month high of 21.8k units, registering a robust 47% MoM and 64% YoY growth," noted Menka Kirpalani, auto analyst at Arif Habib Limited. Analysts attribute this sharp surge to a wave of pre-buying ahead of proposed GST hike on vehicles up to 850cc from 12.5% to 18% effective from July 1, 2025. "June's boost was primarily driven by the unprecedented demand for small cars, particularly Alto," noted Myesha Sohail, auto analyst at Topline Securities. Alto sales hit a 39-month high of 9,497 units, leading to a 139% MoM increase in Pak Suzuki Motor Company's (PSMC) overall sales that reached 13,217 units. PSMC was the top performer, recording the highest MoM growth of 2.4 times. Sales of Cultus and Swift also recorded remarkable increases of 108% and 125% MoM, respectively, while Wagon R was the only PSMC model that posted a decline (-32% MoM). Sazgar Engineering Works Ltd (SAZEW) posted the second-highest monthly sales of 1,349 units in June 2025, up 47% MoM and 55% YoY. The launch of the facelifted Haval lineup contributed significantly to this jump. SAZEW's FY25 sales doubled, reaching 10,844 units versus 5,374 units in FY24. In contrast, Indus Motor Company (INDU) saw its June 2025 volumes fall 24% MoM to 3,687 units, with Corolla and Yaris sales dropping to 2,902 units and Fortuner and Hilux sales down to 785 units. However, INDU still managed a 25% YoY increase in FY25. Honda Atlas Cars (HCAR) posted a 10% MoM drop in June, selling 1,808 units. Despite the monthly decline, HCAR saw a 65% YoY increase in FY25 sales. Motorcycle and three-wheeler sales in June totalled 138,509 units, up 54% YoY but down 9% MoM, taking FY25 volumes to 1.5 million units, a 32% YoY increase. Meanwhile, the tractor segment rose 78% MoM in June to 2,791 units, driven largely by a 136% MoM surge in Millat Tractors' sales. However, overall FY25 tractor volumes were down 32% YoY, reflecting weak agricultural economics. Truck and bus sales reached 737 units in June – a 2.5 times YoY and 21% MoM rise. FY25 volumes doubled to 5,232 units compared to 2,644 in FY24, signalling some recovery in commercial demand. In contrast, India, the region's automotive giant, sold around 4.2 million units (FY25), dwarfing Pakistan's market by 28 times despite a slower 6-8% growth, as reported by the Society of Indian Automobile Manufacturers. Looking ahead, analysts at AHL and Topline Securities forecast continued growth in FY26 as interest rates decline further and companies prepare new launches, particularly hybrid and plug-in hybrid vehicles, catering to evolving consumer preferences and fuel economy needs.

Haval maker: Sazgar says not increasing vehicle prices despite new tax
Haval maker: Sazgar says not increasing vehicle prices despite new tax

Business Recorder

time04-07-2025

  • Automotive
  • Business Recorder

Haval maker: Sazgar says not increasing vehicle prices despite new tax

Sazgar Engineering Works (SAZEW) - company engaged in manufacturing and sale of automobiles, automotive parts and household electric appliances - said on Friday it had decided not to increase its vehicle prices for end-consumers despite imposition of a new tax in the Budget 2025-26. In a letter sent to Haval dealers in Pakistan on Friday, the company said it was absorbing the impact of the 'additional levy to ensure that the final payment of our vehicles remains unchanged'. 'Following the recent announcement of the Federal Budget 2025, a new government levy under New Energy Vehicles Adoption Levy Act, 2025 has been imposed on all our vehicles. As a responsible and customer-focused organisation, Sazgar has consistently taken proactive measures to protect the interests of its valued customers. Sazgar records 'second-highest' 4-wheeler sales in June 2025 'True to this commitment, we are pleased to inform you [dealers] that the company has decided to absorb the impact of this additional levy to ensure that the final payment of our vehicles remains unchanged including all taxes and duties,' the letter read. To recall, some of the industry players have increased their vehicles prices to pass on the impact of the levy on cost of production this week, including Lucky Motors (the assembler of Kia cars), Pak Suzuki Motor and Atlas Honda - the bike manufacturer in the country. The car sales in Pakistan surged 39% in the first 11 months of FY25, standing at 126,226 units in the under review period compared to the same period of the prior fiscal year; FY24.

Sazgar records ‘second-highest' 4-wheeler sales in June 2025
Sazgar records ‘second-highest' 4-wheeler sales in June 2025

Business Recorder

time04-07-2025

  • Automotive
  • Business Recorder

Sazgar records ‘second-highest' 4-wheeler sales in June 2025

The Sazgar Engineering Works (SAZEW) reported on Friday that it had sold 1,349 units of its 4-wheelers in June 2025, a number that a local research house said was the company's second highest in a month. The company anticipated in March 2025 that the demand for automobiles would boost in the wake of economic stabilisation and reduced interest rates in Pakistan. SAZEW rolled out its first four-wheeler in August 2022 in Pakistan under a joint venture with Great Wall Motor (GWM) of China. Sazgar Engineering profit jumps 105% to Rs6.23bn in 3QFY25 According to a notification SAZEW sent to the Pakistan Stock Exchange (PSX), its sales in the month of June were notably higher compared to production of the vehicles reported at 985 units in the month under review. In a brief commentary, Topline Research said, 'SAZEW records second highest 4-wheeler sales in June 2025'. The sales hit 1,349 units in June 2025, surging by 47% compared to the previous month of May. The sales jumped 2.55-time in June compared to the same month of the last year. With this, the company's sales doubled in a year, rising to 10,844 units in FY25 compared to FY24, according to the research house. The company sold 2,435 units of 3-wheelers in June 2025 that remained significantly high compared to the production of 1,420 units of the vehicle in the month, according to the notification. According to the third quarterly financial statement of the company of March 2025, it sold a total of 8,313 units of 4-wheelers in the first nine-month (Jul-Mar) of FY25 that were 159% higher compared to 3,205 units sold in the same period of FY24. 'Auto sector is gradually recovering and progressing towards higher sales volume in line with economic stabilisation. Lower interest rates are expected to boost the auto financing and demand of vehicles in the country,' financial statement read. Sazgar plans NEV rollout by FY26, ups CapEx to Rs11.5bn At present, SAZEW is marketing around six cars including a hybrid electric vehicle (HEV) Haval at present in Pakistan. It is expected to roll out NEV [New Energy Vehicles] into the Pakistani market in the latter part of FY26, as the automaker announced to raise the capital expenditure (CapEx) of its NEV facility by 155%. On Friday, Sazgar's share price hit an intra-day high at Rs1,248.85/share from opening at Rs1,172/share. It, however, closed at Rs1,192.32 on the close of the trading session, limiting day-to-day gains at Rs28.87 or 2.48%.

Auto sector in Pakistan posts strong growth in 11MFY25; car sales surge 35pc YoY
Auto sector in Pakistan posts strong growth in 11MFY25; car sales surge 35pc YoY

Business Recorder

time13-06-2025

  • Automotive
  • Business Recorder

Auto sector in Pakistan posts strong growth in 11MFY25; car sales surge 35pc YoY

KARACHI: Pakistan's automobile sector demonstrated robust growth in the first eleven months of the fiscal year 2024-25, as car sales, motorbikes, and three-wheelers all posted significant gains, reflecting improved economic stability, better consumer confidence, and easing inflationary pressures. According to data compiled by the Pakistan Automotive Manufacturers Association (PAMA) total car sales in May 2025 reached 14,762 units, marking a 35 percent year-on-year increase and a 39 percent month-on-month growth over April 2025. The strong month-on-month recovery was largely attributed to a low sales base in April 2025, when road closures in Sindh due to strikes and operational challenges delayed deliveries, suppressing vehicle sales. As these issues eased, demand bounced back sharply in May, boosted further by a comparatively stable macroeconomic environment, lower financing costs, and improved consumer sentiment in anticipation of budget incentives. In terms of company-wise performance, Sazgar Engineering Works (SAZEW) posted the most remarkable increase, recording a 67 percent month-on-month rise and an 18 percent year-on-year growth. The impressive figures were driven by the April launch of a new facelift model of HAVAL, which gained strong market acceptance. SAZEW's total sales for 11MFY25 surged by 111 percent to 9,495 units, compared to 4,503 units in the same period last year. Indus Motor Company (INDU) also delivered a solid performance, with a 2.4 times year-on-year and a 48 percent month-on-month rise in sales to 4,829 units, marking its highest monthly sales in nearly three years. The growth was supported by increased demand for popular models like Corolla, Yaris, and Cross, whose combined sales reached a new 3-year high. Honda Atlas Cars (HCAR) reported a 69 percent year-on-year and a 17 percent month-on-month increase in sales to 2,005 units, while Pak Suzuki Motor Company (PSMC) saw a mixed result. PSMC posted a 38 percent month-on-month increase but remained down 8 percent compared to the same month last year, with May sales of 5,519 units. Hyundai Nishat Motors registered a healthy 58 percent year-on-year and 45 percent month-on-month rise to 1,307 units in May 2025. The two- and three-wheeler segment continued its impressive run, with total sales increasing by 26 percent year-on-year and 11 percent month-on-month to 150,175 units in May 2025; the highest monthly sales in three years. This brought cumulative 11MFY25 sales to 1.378 million units, up 30 percent year-on-year, as affordability and essential transport needs sustained demand in this segment. Pakistan's tractor industry, however, showed mixed trends. Total tractor sales in May 2025 stood at 2,184 units, representing a 29 percent year-on-year decline but a 36 percent month-on-month increase, as weak farm economics weighed on new purchase decisions. Within this segment, Millat Tractors sold 1,569 units in May 2025, down 34 percent compared to the previous year, while Al-Ghazi Tractors Limited (AGTL) sold 615 units, showing a 17 percent year-on-year decrease. Meanwhile, Pakistan's truck and bus segment recorded significant growth, with May 2025 sales rising by 147 percent year-on-year and 17 percent month-on-month to 610 units. Hino, Master, JAC, and Isuzu vehicles all posted increases, taking total 11MFY25 sales to 4,495 units, a 92 percent rise from 2,345 units in the corresponding period of the last fiscal year. Market analysts attributed this broad-based recovery in the auto sector to easing inflation, lower interest rates, and better financing options, coupled with a stable macroeconomic backdrop. The positive momentum was particularly noticeable in passenger cars and two- and three-wheeler categories, where pent-up demand from previous months converted into actual sales as operational disruptions eased. Looking ahead, Topline Securities expects the momentum to continue into the next fiscal year, driven by a combination of lower interest rates, improving vehicle financing options, and the introduction of new models equipped with updated engines, including hybrid and plug-in hybrid vehicles. Market watchers believe that as macroeconomic stability improves and consumer affordability rises, automobile sales volumes are likely to sustain their growth trajectory in FY26 as well. However, auto expert Mashood Khan has warned that the government's proposed downward trend in Additional Custom Duty, Regulatory Duty, and Custom Duty for easing the import of used vehicles will likely hit local manufacturing instead of increasing exports in the future. He foresees severe consequences for the local manufacturing industry. Without a thriving domestic industry, import bills will surge, and foreign reserves will take a hit, he added. The auto parts and other manufacturing sectors will face significant challenges. It's unclear how exports will increase without a robust local industry, he added. Copyright Business Recorder, 2025

Auto sector posts strong growth in 11MFY25; car sales surge 35pc YoY
Auto sector posts strong growth in 11MFY25; car sales surge 35pc YoY

Business Recorder

time13-06-2025

  • Automotive
  • Business Recorder

Auto sector posts strong growth in 11MFY25; car sales surge 35pc YoY

KARACHI: Pakistan's automobile sector demonstrated robust growth in the first eleven months of the fiscal year 2024-25, as car sales, motorbikes, and three-wheelers all posted significant gains, reflecting improved economic stability, better consumer confidence, and easing inflationary pressures. According to data compiled by the Pakistan Automotive Manufacturers Association (PAMA) total car sales in May 2025 reached 14,762 units, marking a 35 percent year-on-year increase and a 39 percent month-on-month growth over April 2025. The strong month-on-month recovery was largely attributed to a low sales base in April 2025, when road closures in Sindh due to strikes and operational challenges delayed deliveries, suppressing vehicle sales. As these issues eased, demand bounced back sharply in May, boosted further by a comparatively stable macroeconomic environment, lower financing costs, and improved consumer sentiment in anticipation of budget incentives. In terms of company-wise performance, Sazgar Engineering Works (SAZEW) posted the most remarkable increase, recording a 67 percent month-on-month rise and an 18 percent year-on-year growth. The impressive figures were driven by the April launch of a new facelift model of HAVAL, which gained strong market acceptance. SAZEW's total sales for 11MFY25 surged by 111 percent to 9,495 units, compared to 4,503 units in the same period last year. Indus Motor Company (INDU) also delivered a solid performance, with a 2.4 times year-on-year and a 48 percent month-on-month rise in sales to 4,829 units, marking its highest monthly sales in nearly three years. The growth was supported by increased demand for popular models like Corolla, Yaris, and Cross, whose combined sales reached a new 3-year high. Honda Atlas Cars (HCAR) reported a 69 percent year-on-year and a 17 percent month-on-month increase in sales to 2,005 units, while Pak Suzuki Motor Company (PSMC) saw a mixed result. PSMC posted a 38 percent month-on-month increase but remained down 8 percent compared to the same month last year, with May sales of 5,519 units. Hyundai Nishat Motors registered a healthy 58 percent year-on-year and 45 percent month-on-month rise to 1,307 units in May 2025. The two- and three-wheeler segment continued its impressive run, with total sales increasing by 26 percent year-on-year and 11 percent month-on-month to 150,175 units in May 2025; the highest monthly sales in three years. This brought cumulative 11MFY25 sales to 1.378 million units, up 30 percent year-on-year, as affordability and essential transport needs sustained demand in this segment. Pakistan's tractor industry, however, showed mixed trends. Total tractor sales in May 2025 stood at 2,184 units, representing a 29 percent year-on-year decline but a 36 percent month-on-month increase, as weak farm economics weighed on new purchase decisions. Within this segment, Millat Tractors sold 1,569 units in May 2025, down 34 percent compared to the previous year, while Al-Ghazi Tractors Limited (AGTL) sold 615 units, showing a 17 percent year-on-year decrease. Meanwhile, Pakistan's truck and bus segment recorded significant growth, with May 2025 sales rising by 147 percent year-on-year and 17 percent month-on-month to 610 units. Hino, Master, JAC, and Isuzu vehicles all posted increases, taking total 11MFY25 sales to 4,495 units, a 92 percent rise from 2,345 units in the corresponding period of the last fiscal year. Market analysts attributed this broad-based recovery in the auto sector to easing inflation, lower interest rates, and better financing options, coupled with a stable macroeconomic backdrop. The positive momentum was particularly noticeable in passenger cars and two- and three-wheeler categories, where pent-up demand from previous months converted into actual sales as operational disruptions eased. Looking ahead, Topline Securities expects the momentum to continue into the next fiscal year, driven by a combination of lower interest rates, improving vehicle financing options, and the introduction of new models equipped with updated engines, including hybrid and plug-in hybrid vehicles. Market watchers believe that as macroeconomic stability improves and consumer affordability rises, automobile sales volumes are likely to sustain their growth trajectory in FY26 as well. However, auto expert Mashood Khan has warned that the government's proposed downward trend in Additional Custom Duty, Regulatory Duty, and Custom Duty for easing the import of used vehicles will likely hit local manufacturing instead of increasing exports in the future. He foresees severe consequences for the local manufacturing industry. Without a thriving domestic industry, import bills will surge, and foreign reserves will take a hit, he added. The auto parts and other manufacturing sectors will face significant challenges. It's unclear how exports will increase without a robust local industry, he added. Copyright Business Recorder, 2025

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store