Sazgar Engineering Works Limited (PSX: SAZEW) has announced that it is exporting its three-wheelers to several international markets and now aims to expand into three additional countries — the Philippines, Mexico, and Afghanistan.
In a corporate briefing reported by Topline Securities, company officials stated that recent floods did not significantly disrupt supply operations. Deliveries are only delayed when the Karachi-Lahore Road is closed, but such interruptions were minimal during the floods.
The automaker currently offers six variants: four of the Haval H6 and two of the Jolion. Management acknowledged that margins fell in the fourth quarter due to a larger share of low-margin products, though they remained higher than industry averages. Each model, they noted, contributes differently to overall profitability.
Due to higher bookings, delivery times have stretched from 2–3 months to 3–4 months. The company credited its marketing team for effectively handling the EV adaptation levy, which has supported strong bookings after its implementation.
Sazgar’s current four-wheeler production capacity is 40 vehicles per day, but output has already reached 60. With bookings rising, expansion plans are underway to increase daily production to between 100 and 120 units. The company also indicated that double shifts may be introduced if demand continues at this pace.
Under the government’s Greenfield auto policy, benefits for Petrol and HEV variants of Haval will remain available until June 2026. However, PHEV models are excluded. To offset potential margin declines once these benefits expire, Sazgar plans to rely on higher sales volumes and improved efficiency at its new plant, which will also feature a 5MW rooftop solar installation.
Looking ahead, the company plans to launch two new variants, TANK and Canon Alpha, by March 2026. The completely built-up (CBU) unit is expected to cost around Rs. 45 million, while the locally assembled completely knocked-down (CKD) version will be offered at a lower price.
Management further noted that the recently introduced 40% regulatory duty on imported used cars up to five years old will have little to no impact on Sazgar’s operations, as the measure mainly affects sedans. The company expects this step to ease competitive pressure from imports in the domestic market.
