Sazgar Engineering Works Limited (SAZEW), a leading name in Pakistan’s automotive industry, has announced a major step forward in its global strategy. The company will export vehicles to the Philippines, Mexico, and Afghanistan, signaling a bold move to tap into international markets and diversify its revenue streams. This initiative was highlighted during the company’s recent corporate briefing, where management detailed production, expansion, and overseas sales plans.
Expanding Production Capacity
Sazgar has steadily scaled up its production capacity over the years. Although its installed output stands at 40 vehicles per day, the company is already producing close to 60 units daily. With strong bookings and rising overseas demand, Sazgar is considering double shifts, which would increase its daily output to 100–120 units. This production expansion ensures that both domestic and export markets can be served without disruptions to supply operations.
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New Models and Market Strategy
Alongside its existing portfolio, Sazgar is set to launch two new models — the Tank and the Canon Alpha — by March 2026. These vehicles will complement the company’s growing footprint in both passenger vehicles and three-wheelers, which remain central to its local assembly operations. By offering CKD (completely knocked down) assembly as well as CBU (completely built unit) imports, Sazgar continues to balance affordability with premium product offerings under the Greenfield auto policy.
Financial Performance
The company’s financial results underline its momentum. Sazgar’s turnover surged by 89% to PKR 109 billion, while profit after tax rose by 106% to PKR 16 billion. A significant share of this growth stems from strong Haval sales, as well as efficiency gains in margins from localized production and scaling. The use of rooftop solar at its facilities has also reduced energy costs, further boosting profitability.
Challenges and Competitive Pressure
Despite the successes, Sazgar faces competitive pressure both locally and abroad. Domestically, regulatory duty on used cars and imported vehicles shapes customer choices, while globally, stringent quality and compliance standards in markets like Mexico and the Philippines require continuous improvement. Natural disasters, such as recent floods that disrupted logistics and the temporary closure of the Karachi–Lahore highway, also highlight vulnerabilities in supply operations.
Key Figures at a Glance
| Category | Details |
|---|---|
| Installed Capacity | 40 vehicles per day (baseline production capacity). |
| Current Production | ~60 vehicles per day, surpassing installed capacity due to demand. |
| Planned Production | 100–120 vehicles/day expected with double-shift operations. |
| Export Destinations | Expanding to Philippines, Mexico, and Afghanistan. |
| Upcoming Models | Tank and Canon Alpha launching by March 2026. |
| Turnover Growth | +89% year-on-year, reaching PKR 109 billion. |
| Profit After Tax | +106% growth with record profit of PKR 16 billion. |
| Major Contributor | Strong sales from Haval SUVs and three-wheeler segment. |
| Local Assembly Options | Available in both CKD (Completely Knocked Down) and CBU (Completely Built-Up) formats. |
| Policy Framework | Operating under Pakistan’s Greenfield Auto Policy to support localization & growth. |
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Implications for Pakistan Auto Industry
Sazgar’s decision to export vehicles reflects a transformative phase in Pakistan’s auto sector. By entering international markets like the Philippines and Mexico, the company is positioning itself as a serious global competitor. If successful, these exports will not only boost Pakistan’s foreign exchange earnings but also strengthen investor confidence in local manufacturers.
Through consistent innovation, adoption of clean energy solutions like rooftop solar, and a balanced mix of local assembly and imports, Sazgar is charting a path of sustainable growth. The journey will require overcoming competitive pressure, ensuring regulatory compliance, and sustaining overseas demand, but the company’s track record suggests that it is well-prepared to take on the challenge.
