Latest news with #Sazgar
Business Recorder
3 days ago
- Automotive
- Business Recorder
Brakes on
Rate cuts have been more than welcoming for car buyers, and it shows in improving sales across the industry. In 10M, a 40 percent rise in cumulative sales for passenger cars, SUVs, and LCVs indicates the industry is on the mend—from a massive slump, no doubt, but definitely recuperating. Passenger cars in 10MFY25 recovered 32 percent, but it was LCVs and SUVs that shone—up 69 percent from last year. This is still behind FY23 and FY21, and significantly down from sales during FY22. This year was always going to be a slow recovery, as gradually returning appetite—which refers to not just desire but the ability to make a purchase—is being driven by better inflation levels and falling interest rates. This is not to say that the SBP is fully prepared for a resurgence in automotive demand. If it were, the regulator would have loosened the regulatory noose on car financing terms that were much more relaxed in FY22. The freeze on financing for imported cars continues—so do the high equity requirements and shorter loan tenors. Average monthly passenger car sales during the current year stood at roughly 8,300 versus 6,300 last year (10M) and almost 8,900 the year before that. The real growth in LCVs/SUVs is visible in average sales too—selling upward of 2,800 units per month this year, versus last year's 1,600 and 2,700 the year before that. From Hyundai's fairly decent volumes in Santa Fe, Porter, and Tucson, to Toyota doubling its Fortuner and Hilux sales, to Sazgar's Haval taking control of more than a third of the market (excluding Ravi sales), the climb is steep, and it is outperforming past outcomes. At a time like this, it makes sense that the smallest and the largest segments are outpacing the rest. Alto alone sold 1.2 times the total LCV and SUV sales. In terms of volumes, there is no beating this compact car. Suzuki workshops are working overtime. Advance payment is 100 percent (unlike other popular vehicles like Yaris or Civic), there's an 'own' of roughly Rs300,000 to get the vehicle immediately, and buyers will pay the price differential in full if there's a bump at delivery. These terms are stringent and yet, volumes are racking up. It remains the biggest bang for buck in the market, even at the ridiculously high price it's selling for today. On the other end are the big engines dominating both roads and market share. To a great extent, any price is fair in this segment—as long as the vehicle is competitive and delivers performance. This is the segment where assemblers can actually get creative, and those who have are seeing their sales shoot up. In a market that has been so starved for choice and variety, and one that is drawn to imported used vehicles like moth to flame, assemblers better up the ante come FY26. Because if the government goes through with its promise to liberalize the import policy—should it be so gumptious—it's game over, or at least game pause, for a lot of these.
Business Recorder
23-05-2025
- Automotive
- Business Recorder
Sazgar plans NEV rollout by FY26, ups CapEx to Rs11.5bn
Sazgar Engineering Works (SAZEW) is expected to rollout NEV [new energy vehicles] into the Pakistani market in the latter part of FY26, as the automaker announced to raise the capital expenditure (CapEx) of its NEV facility by 155%. The update was provided in an analysts' briefing attended by brokerage houses on Friday. 'The company recently announced that it had revised the cost of its CapEx from the earlier Rs4.5bn to Rs11.5bn on its new NEV plant manufacturing/assembly facility and other cost efficiency projects which include: 1) expansion of existing paint shop, 2) construction of new warehousing facilities, and 3) installation of 5.7MW solar power plant,' said JS Global, who attended the corporate briefing, in its report on Friday. 'The first rollout of NEV vehicles, which will most likely include ORA vehicles, is expected in the latter part of FY26,' it added. Sazgar to launch ORA-07 EV in Pakistan ORA is a sub-brand of Chinese automotive giant Great Wall Motors (GWM), which specialises in EVs. GWM is a major player in the global automotive industry, with a portfolio that includes well-known brands such as Haval, Ora, and Tank, along with the innovative automotive technology firm Salon Mecha Technology Co., Ltd. Furthermore, Sazgar management reaffirmed their plans to launch GWM Tank 500 (Luxury SUV) and are also considering PHEV models, said JS Global. Moreover, the company's production capacity is expected to increase from roughly 40 units per day currently to around 90 after the expansion, it said. '[Sazgar's] management apprised that these new vehicles will not fall under the greenfield status,' read the report. JS Global was of the view that the automaker is prioritizing volumetric growth and the launch of its NEV line-up is expected to help preserve margins depending on the incentives given in the upcoming NEV policy.
Business Recorder
02-05-2025
- Automotive
- Business Recorder
New Energy Vehicles: Pakistan's ‘largest DC fast-charging network' to be launched
BYD Pakistan-Mega Motor Company (BYD|MMC) has partnered with HUBCO Green (Private) Limited (HGL) to launch the country's 'largest DC fast-charging network for new energy vehicles (NEVs)', a statement said on Friday. According to the statement, HGL will install approximately 128 DC fast chargers across the country over the next three years, with 50 installations planned by December 2025. New Energy Vehicles: Sazgar delays launch till March 2026; expansion scaled up The network will be developed across three key areas: urban centers will be powered through partnerships with major oil marketing companies (OMCs) such as PSO, PARCO Gunvor, and Attock Petroleum Limited; intercity highways and motorways with chargers placed every 150-200 kilometers to support long distance travel; and destination charging points at commercial hubs, malls, hotels, and hospitals to enhance customer convenience. 'Several key installations are already operational in Karachi, Lahore, and Islamabad, including at PSO stations and BYD Pakistan dealerships,' the statement said. 'Range anxiety remains one of the most significant barriers to NEV adoption across Pakistan,' said Danish Khaliq, Vice President Sales and Strategy, BYD Pakistan. 'Through this groundbreaking partnership with HUBCO Green, we are not just addressing a logistical issue but shaping the entire mobility landscape of the country. NEV policy tailored to meet national priorities: MoI&P Our commitment goes beyond building the infrastructure; it's about giving confidence and assurance to our consumers that electric mobility is not only possible, but practical. As pioneers in this space, BYD is proud to lead the charge in making clean transportation a reality for the entire nation,' he added. Meanwhile, Masood Zafar, Vice President Projects, HUBCO, stated: 'We believe that the foundation of a green transportation revolution lies in vast, readily-available infrastructure. Through our partnership with BYD Pakistan, we are laying the foundation for a cleaner and greener future.'
Business Recorder
22-04-2025
- Automotive
- Business Recorder
Sazgar's giant leap
Rickshaw maker Sazgar Engineering (PSX: SAZEW) has been in the news for all the right reasons, none of which involve rickshaws. The company announced its most recent quarterly financial results reporting after-tax earnings of Rs6.2 billion, double the profits earned in this period last year, and 14 times the earnings only two years ago. Sazgar has taken quite a leap. Sazgar began its four-wheel journey in 2022 after it decided to invest in expanding facilities and launch Chinese SUVs to the Pakistani market. The Company signed technical and cooperation agreements with Beijing Automotive Group Company Ltd. (BAIC) and Great Wall Motor Company Ltd. (GWM) for assembly of their four wheelers. At the time, a handful of new players had already entered the market and finding it more receptive than ever before. Sazgar launched Haval H6 and Jolian and later launched their electric versions. In competition with Kia Sportage and Hyundai Tucson, Sazgar's fully loaded and reasonably priced offerings have done incredibly well, and local buyers have responded. As a result, sales have catapulted. Since last year, Haval's share in the SUV segment (including Toyota Fortuner and Hilux, Hyundai Tucson and Santa Fe, Honda BR-V) has grown from 18 percent to 44 percent. In the latest quarter, Sazgar sold three times more locally assembled Haval than Hyundai did Tucson and 1.4x the total volumes for Fortuner and Hilux. The company's financial performance reflects this growth. In 3QFY25, revenue grew 83 percent, profits are up 2x and the company is signalling confidence to shareholders by issuing a dividend. The dividend payout during the quarter was 12 percent, vs previous quarter's 25 percent. The company has kept costs in control which has brought the gross margins to 33 percent in 3QFY25 from 28 percent this period last year, and 12 percent during the year before that. Sazgar has optimized on costs impressively and if the company is using a form of just-in-time model for production like other assemblers, it has done a much better job of scheduling shipments of CKD kits and managing production timelines(while keeping lean inventories)than peers and aligning them with demand. Sazgar keeps it lean in other ways too. Its overheads are 3 percent of revenue (a quarterly average of 4 percent since FY23) and it has virtually no financial charges. As a result, net margins at 17 percent is enviable as an automotive assembler just starting to operate in Pakistan. While the SUV market may appear saturated, demand continues to expand, especially among buyers cautiously shifting toward Chinese options as imported CBUs remain prohibitively expensive. This leaves the door wide open for players like Sazgar. Though it would seem that matching Sazgar's level of operational efficiency and strategic execution may be beyond the reach of many competitors. Copyright Business Recorder, 2025
