Sazgar Engineering Works Limited (PSX: SAZEW) has announced plans to expand its international footprint by exporting rickshaws to three new countries — the Philippines, Mexico, and Afghanistan. The move is part of the company’s strategy to strengthen its position in global markets while also boosting local production.
Minimal Disruption Despite Floods
In a recent corporate briefing reported by Topline Securities, company officials explained that the recent floods in Pakistan did not significantly disrupt operations. Deliveries were only slightly delayed when the Karachi-Lahore Road was closed, but overall supply chains remained stable.
Product Range and Margins
Sazgar currently offers six vehicle variants: four of the Haval H6 and two of the Jolion. While the company admitted that profit margins fell in the last quarter due to a higher share of low-margin models, management noted that returns remain stronger than industry averages. Each model contributes differently to profitability.
Growing Demand and Capacity Expansion
Customer bookings are rising, extending delivery times from 2–3 months to 3–4 months. The company credited its marketing team for handling the new EV adaptation levy, which helped maintain strong demand.
Sazgar’s four-wheeler production capacity is 40 vehicles per day, but output has already increased to 60. With demand growing, the company is planning to expand daily production to 100–120 units and may introduce double shifts to keep up.
Government Policy and Future Plans
Under Pakistan’s Greenfield auto policy, Petrol and HEV variants of Haval will continue to enjoy tax benefits until June 2026, though PHEV models are excluded. To manage future margin pressures, Sazgar plans to focus on higher sales volumes, efficiency, and renewable energy. Its new plant will also feature a 5MW rooftop solar system.
Looking ahead, the company will launch two new models — TANK and Canon Alpha — by March 2026. The completely built-up (CBU) version will cost around Rs. 45 million, while a locally assembled CKD version will be available at a lower price.
Limited Impact from Import Duties
The government recently imposed a 40% regulatory duty on imported used cars up to five years old. However, Sazgar management stated this will have little impact on its business, as the duty mainly affects sedans. Instead, the company expects reduced import competition to benefit its domestic sales.
