LAHORE: Sazgar Engineering Works Limited announced on Thursday it has increased its capital expenditure (CapEx) to Rs11.5 billion, up from the earlier estimate of Rs4.5 billion, to support the expansion of its four-wheeler manufacturing operations and the rollout of New Energy Vehicles (NEVs) by March 2026.
The announcement was made during the company’s corporate briefing, which covered third-quarter results for FY25 and outlined Sazgar’s strategic outlook. The additional investment will fund plant expansion, new warehousing, a 5.7MW solar facility, and upgrades to its existing paint shop.
Sazgar said the expansion will raise its production capacity from 40–50 units per day to 90–100 units per day. The company is also focusing on expanding its dealership network beyond its current 20 locations, with new centers expected soon in Mardan and Peshawar.
The automaker plans to introduce new NEV models, including variants under Great Wall Motors’ (GWM) brands such as the TANK and the GWM Cannon. Management also confirmed that hybrid and electric models like the H6 Plug-in and others will fall under the upcoming NEV policy, but not under the existing greenfield incentives, which expire in June 2026.
While sales dipped in April 2025 due to road closures in Sindh and adjustments for facelifted models, production has since normalized, and May figures are expected to show recovery, management said.
Regarding pricing, the company stated that the facelifted H6 was launched at the same price with enhanced features, and GWM’s pricing strategy has not affected Sazgar’s profit margins. The lead time for HAVAL vehicle deliveries remains steady at 2–3 months.
Amid speculation about the federal budget, management downplayed potential negative impacts, noting that imported Completely Built Units (CBUs) remain priced above Sazgar’s offerings, and any reduction in used car import duties would likely take time to affect the market.
Sazgar also ruled out any plans to introduce hatchbacks or sedans, staying aligned with GWM’s focus on SUVs and pickups. The company expects post-greenfield policy margin pressures to be offset by volume growth from new model introductions and increased capacity.
On the export front, Sazgar emphasized the need for significant investment to scale up its three-wheeler business globally. As part of its clean mobility initiative, the company, in partnership with Yango, has deployed a fleet of 20 locally manufactured electric rickshaws in Lahore.
