Sazgar Engineering all set to introduce CKD Haval SUVs this month

LAHORE: Sazgar Engineering Works Limited (SAZEW) on Monday notified the Pakistan Stock Exchange (PSX) that it will be introducing the completely-knocked-down (CKD) variants of its Haval lineup of vehicles within August.

This is because SAZEW has been able to complete trial operations earlier than the previously expected date of 1st October, 2022. Profit was also able to confirm from Ammar Hameed, Director at Sazgar Engineering, that the company has an annual productive capacity of 24,000 to cater to demand. 

According to the details, the H6 1.5 and 2.0, the two variants being introduced, will retail for prices of PKR 7.425 million and PKR 8.499 million respectively. Both vehicles are crossover-SUVs (CUV). They will likely take aim at vehicles such as the KIA Sportage, arguably the most popular vehicle in the category, and the myriad of other new entrants in the CUV space such as the Changan Oshan X7 and the MG HS. 

“It has more features, bigger cabin size. It’s all about the features with Haval ” said Ammar Hameed, Director at Sazgar Engineering, when referring to the competitors occupying the same space as Haval. Profit has already documented the nature of the CUV market and the space that various competitors currently occupy. 

Read more: The attack of the SUVs

Profit had earlier documented how Sazgar’s expansion into the CKD space seemed likely looking at the Rs32 million and Rs17 million increase in SAZEW in its property, plant and equipment, and long term financing respectively from its December 2021 to March 2022 quarterly reports.

However, its eagerness to initiate its local assembly is likely an attempt to build upon the success it’s seen in the automotive space. Four wheelers accounted for 58% of all revenue generated December 2021 and March 2022 based on SAZEW’s quarterly reports. 

Localizing the portfolio may also enable SAZEW to stabilize the prices of the HAVAL portfolio by reducing the forex exposure associated with the completely-built-up units (CBU) with the H6 having seen three price revisions this summer. 

Amidst the buzz, SAZEW has not given a final date for when the CKD Jolion will be launched. However, the expectation is that it will be announced in the months following the release of the H6.