Sazgar launches first CKD plug-in hybrid, exits home appliances business

Sazgar Engineering Works Limited has reaffirmed its commitment to Pakistan’s New Energy Vehicle (NEV) transition with the launch of its first Completely Knocked Down (CKD) Plug-In Hybrid Electric Vehicle (PHEV), the HAVAL H6 1.5L, on August 16, 2025, as part of a broader expansion into advanced and eco-friendly mobility solutions.

According to the company’s annual report, Sazgar plans to further its CKD footprint with the rollout of TANK-500 and CANNON PHEVs by March 31, 2026, aligning with the Government of Pakistan’s policy to reduce oil dependency and promote environmentally sustainable transport.

“Sazgar remains committed to the introduction of New Energy Vehicles (NEVs) equipped with advanced technologies and modern features in line with the Government’s policy framework,” the company said.

Auto Sector Recovery and Market Trends

The company reported a strong rebound in Pakistan’s auto sector over the past fiscal year, crediting macroeconomic stabilization and a sharp reduction in the State Bank of Pakistan’s policy rate, from 20.50% to 11%, which spurred a 20% surge in auto financing—rising from PKR 230.5 billion to PKR 276.6 billion.

This more accessible financing environment, coupled with a stable Pakistani rupee, helped vehicle prices remain steady and encouraged automakers to introduce new models across various powertrains, including petrol, hybrid, plug-in hybrid, and fully electric vehicles.

According to Pakistan Automotive Manufacturers Association (PAMA) data cited in the report:
• The four-wheeler segment (excluding tractors) recorded a 43.94% increase in sales, reaching 153,255 units, compared to 106,491 units in FY2024.
• The three-wheeler segment surged 65.57%, outpacing last year’s 26.17% growth.
• The tractor segment, however, slumped 36.42%, reversing a 47.03% gain the previous year, amid declining market demand.

Strategic Business Shifts

In a significant strategic decision, Sazgar announced its exit from the home appliances segment, effective September 1, 2025, following a comprehensive evaluation of its financial performance and alignment with long-term goals.

“The Board has decided to discontinue the Home Appliances business… after a comprehensive review of its financial performance, market dynamics, and long-term strategic objectives,” the company stated.

Meanwhile, the company’s three-wheeler division is expected to sustain its growth trajectory, contributing positively to future revenue, while the tractor wheel segment remains under pressure, continuing to face demand-side challenges.

Exports and Manufacturing Expansion

Exports remain a strategic priority, both as a growth driver and a contributor to Pakistan’s foreign exchange earnings. Sazgar said it is making “continuous efforts” to expand export volumes in the years ahead.

To support its NEV ambitions, the company has also made significant investments in new manufacturing facilities, which will help localize advanced vehicle technologies and support long-term scalability in the competitive auto market.

With its push into hybrid and electric vehicles, realignment of business priorities, and focus on exports, Sazgar is positioning itself as a key player in Pakistan’s evolving automotive sector, which is increasingly being shaped by green technologies and consumer diversification.