Pakistan’s auto rickshaw maker to enter three more countries

Sazgar Engineering Works Ltd. (SAZEW) announced Thursday plans to enter three new export markets — the Philippines, Mexico, and Afghanistan — for its three-wheelers, as the company scales up production to meet surging domestic demand for its four-wheelers.

The company’s four-wheeler production capacity stands at 40 units per day, but current output has surged to 60 vehicles daily due to strong bookings.

To cope with rising demand, Sazgar plans to expand capacity to 100 to 120 vehicles per day, with potential for double-shift operations.

The company shared these updates during its corporate briefing on FY25 financial results and future strategy.

Under Pakistan’s auto development policy, greenfield benefits apply only to the petrol and hybrid electric vehicle (HEV) variants of its HAVAL models until June 2026. Plug-in hybrid electric vehicles (PHEVs) are excluded from the incentives.

The company plans to mitigate a potential post-2026 margin squeeze through volume growth and operational efficiency at its new plant, which will also feature a 5MW rooftop solar installation.

New vehicle models — TANK and Canon Alpha — are scheduled for introduction by March 2026. The CBU versions are priced at approximately PKR 45 million, while the more affordable CKD units will follow.

Company management noted that the recently imposed 40% regulatory duty on imported used cars (up to five years old) will not impact Sazgar, as it primarily targets sedans. The measure is expected to reduce import-driven pressure on the market.

The management noted that the expiry of the 2021-26 policy in 2026 will bring an end to duty benefits on HEVs; nonetheless, the company remains focused on CAPEX and anticipates that increased volumes after expansion will help absorb the impact.

Sazgar continues to export three-wheelers to several countries and is now pursuing entry into the Philippines, Mexico, and Afghanistan.

Financially, SAZEW posted an 89% increase in turnover to PKR 109 billion in FY25, with profit after tax jumping 106% to PKR 16 billion, largely due to robust HAVAL sales. The company also saw a 74% rise in non-current assets tied to its four-wheeler expansion.

Despite some margin compression in Q4 driven by a higher mix of low-margin products, management said overall profitability remained above industry peers. The company currently offers six vehicle variants — four HAVAL H6s and two Jolion models.

Flood-related disruptions were minimal this year, with management noting that supply chain issues generally arise only when the Karachi–Lahore route is impacted, which was not significantly affected.

Meanwhile, delivery times have increased from 2 to 3 months to 3 to 4 months due to high booking volumes.