Latest news with #Sazgar
Business Recorder
04-07-2025
- 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.
Business Recorder
04-07-2025
- 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%.
Business Recorder
30-05-2025
- Automotive
- Business Recorder
Brakes on
Rate cuts have been more than welcoming for car buyers, and it shows in improving sales across the industry. In 10M, a 40 percent rise in cumulative sales for passenger cars, SUVs, and LCVs indicates the industry is on the mend—from a massive slump, no doubt, but definitely recuperating. Passenger cars in 10MFY25 recovered 32 percent, but it was LCVs and SUVs that shone—up 69 percent from last year. This is still behind FY23 and FY21, and significantly down from sales during FY22. This year was always going to be a slow recovery, as gradually returning appetite—which refers to not just desire but the ability to make a purchase—is being driven by better inflation levels and falling interest rates. This is not to say that the SBP is fully prepared for a resurgence in automotive demand. If it were, the regulator would have loosened the regulatory noose on car financing terms that were much more relaxed in FY22. The freeze on financing for imported cars continues—so do the high equity requirements and shorter loan tenors. Average monthly passenger car sales during the current year stood at roughly 8,300 versus 6,300 last year (10M) and almost 8,900 the year before that. The real growth in LCVs/SUVs is visible in average sales too—selling upward of 2,800 units per month this year, versus last year's 1,600 and 2,700 the year before that. From Hyundai's fairly decent volumes in Santa Fe, Porter, and Tucson, to Toyota doubling its Fortuner and Hilux sales, to Sazgar's Haval taking control of more than a third of the market (excluding Ravi sales), the climb is steep, and it is outperforming past outcomes. At a time like this, it makes sense that the smallest and the largest segments are outpacing the rest. Alto alone sold 1.2 times the total LCV and SUV sales. In terms of volumes, there is no beating this compact car. Suzuki workshops are working overtime. Advance payment is 100 percent (unlike other popular vehicles like Yaris or Civic), there's an 'own' of roughly Rs300,000 to get the vehicle immediately, and buyers will pay the price differential in full if there's a bump at delivery. These terms are stringent and yet, volumes are racking up. It remains the biggest bang for buck in the market, even at the ridiculously high price it's selling for today. On the other end are the big engines dominating both roads and market share. To a great extent, any price is fair in this segment—as long as the vehicle is competitive and delivers performance. This is the segment where assemblers can actually get creative, and those who have are seeing their sales shoot up. In a market that has been so starved for choice and variety, and one that is drawn to imported used vehicles like moth to flame, assemblers better up the ante come FY26. Because if the government goes through with its promise to liberalize the import policy—should it be so gumptious—it's game over, or at least game pause, for a lot of these.
Business Recorder
23-05-2025
- Automotive
- Business Recorder
Sazgar plans NEV rollout by FY26, ups CapEx to Rs11.5bn
Sazgar Engineering Works (SAZEW) is expected to rollout 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%. The update was provided in an analysts' briefing attended by brokerage houses on Friday. 'The company recently announced that it had revised the cost of its CapEx from the earlier Rs4.5bn to Rs11.5bn on its new NEV plant manufacturing/assembly facility and other cost efficiency projects which include: 1) expansion of existing paint shop, 2) construction of new warehousing facilities, and 3) installation of 5.7MW solar power plant,' said JS Global, who attended the corporate briefing, in its report on Friday. 'The first rollout of NEV vehicles, which will most likely include ORA vehicles, is expected in the latter part of FY26,' it added. Sazgar to launch ORA-07 EV in Pakistan ORA is a sub-brand of Chinese automotive giant Great Wall Motors (GWM), which specialises in EVs. GWM is a major player in the global automotive industry, with a portfolio that includes well-known brands such as Haval, Ora, and Tank, along with the innovative automotive technology firm Salon Mecha Technology Co., Ltd. Furthermore, Sazgar management reaffirmed their plans to launch GWM Tank 500 (Luxury SUV) and are also considering PHEV models, said JS Global. Moreover, the company's production capacity is expected to increase from roughly 40 units per day currently to around 90 after the expansion, it said. '[Sazgar's] management apprised that these new vehicles will not fall under the greenfield status,' read the report. JS Global was of the view that the automaker is prioritizing volumetric growth and the launch of its NEV line-up is expected to help preserve margins depending on the incentives given in the upcoming NEV policy.
Business Recorder
02-05-2025
- Automotive
- Business Recorder
New Energy Vehicles: Pakistan's ‘largest DC fast-charging network' to be launched
BYD Pakistan-Mega Motor Company (BYD|MMC) has partnered with HUBCO Green (Private) Limited (HGL) to launch the country's 'largest DC fast-charging network for new energy vehicles (NEVs)', a statement said on Friday. According to the statement, HGL will install approximately 128 DC fast chargers across the country over the next three years, with 50 installations planned by December 2025. New Energy Vehicles: Sazgar delays launch till March 2026; expansion scaled up The network will be developed across three key areas: urban centers will be powered through partnerships with major oil marketing companies (OMCs) such as PSO, PARCO Gunvor, and Attock Petroleum Limited; intercity highways and motorways with chargers placed every 150-200 kilometers to support long distance travel; and destination charging points at commercial hubs, malls, hotels, and hospitals to enhance customer convenience. 'Several key installations are already operational in Karachi, Lahore, and Islamabad, including at PSO stations and BYD Pakistan dealerships,' the statement said. 'Range anxiety remains one of the most significant barriers to NEV adoption across Pakistan,' said Danish Khaliq, Vice President Sales and Strategy, BYD Pakistan. 'Through this groundbreaking partnership with HUBCO Green, we are not just addressing a logistical issue but shaping the entire mobility landscape of the country. NEV policy tailored to meet national priorities: MoI&P Our commitment goes beyond building the infrastructure; it's about giving confidence and assurance to our consumers that electric mobility is not only possible, but practical. As pioneers in this space, BYD is proud to lead the charge in making clean transportation a reality for the entire nation,' he added. Meanwhile, Masood Zafar, Vice President Projects, HUBCO, stated: 'We believe that the foundation of a green transportation revolution lies in vast, readily-available infrastructure. Through our partnership with BYD Pakistan, we are laying the foundation for a cleaner and greener future.'
