AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Lahore: Sazgar Engineering Works Ltd. reported a substantial increase in its revenue and profit for the first nine months of the fiscal year 2025, driven largely by a rise in sales of four-wheelers, particularly the HAVAL model. The company announced a revenue of PKR 81.4 billion, more than doubling the PKR 34.6 billion recorded in the same period last year. Profits also rose sharply to PKR 12.9 billion from PKR 4.4 billion during the same period.
The company’s management linked the April sales drop to a 12-day road closure in Sindh and Punjab, which disrupted operations. Despite this, gross margins improved to 30.5% from 25.8% in the previous fiscal year. However, the company expressed uncertainty over future margins due to the upcoming New Energy Vehicle (NEV) policy.
Sazgar plans to introduce a new range of New Energy Vehicles, focusing on SUVs and double-cabins, but these will not fall under the greenfield policy. The management shared plans to expand the production of four-wheelers to 90-100 units per day by March 2026, up from the current 43 units per day.
The company has revised its capital expenditure plan to PKR 11.5 billion, which includes upgrades to manufacturing facilities and the installation of a 5.7-MW solar system. Sazgar also aims to grow its dealership network beyond the current 20 locations, with a focus on Sindh and KPK regions.
In the three-wheeler segment, sales of electric rickshaws have struggled due to high pricing. Despite this challenge, the company continues to export three-wheelers to Japan and Liberia. Management refrained from commenting on potential impacts from ongoing tariff changes, noting that no official decisions have been announced.