Strong Sales and Strategic Expansion Drive Sazgar Engineering Works' Growth
Sazgar Engineering Works (SAZEW) has recorded impressive performance in June 2025, achieving its second-highest monthly sales with the sale of 1,349 four-wheelers. This represents a significant 47% increase compared to May’s figures and more than doubles the sales from June 2024. The growth is attributed to factors such as economic stability and reduced interest rates, which have contributed to increased consumer demand.
In its stock filing, SAZEW highlighted that production in June reached only 985 units, indicating that sales far exceeded production. This discrepancy underscores strong market demand for the company's products. Sazgar entered the four-wheeler market in August 2022 through a joint venture with China's Great Wall Motor. In addition to four-wheelers, the company sold 2,435 three-wheelers in June, significantly surpassing the production of 1,420 units during the same period.
Over the first nine months of FY25, Sazgar sold 8,313 four-wheelers, marking a 159% increase compared to 3,205 units in the same period last year. The company’s financial results also show a 105% rise in profit, reaching Rs6.23 billion. This success is partly driven by the popularity of hybrid models such as Haval, which have expanded Sazgar’s market presence.
The positive sales performance was reflected in the company’s share price. It reached an intra-day high of Rs1,248.85 before closing at Rs1,192.32 per share. Investors welcomed the strong sales report, signaling confidence in the company’s future prospects. This momentum comes at a time when Pakistan’s auto sector is showing signs of recovery after a period of slowdown. Lower interest rates are playing a key role in making new vehicles more accessible to consumers.
Future Plans and Market Positioning
Looking ahead, Sazgar Engineering Works has ambitious plans to expand its product portfolio. The company aims to launch New Energy Vehicles (NEVs) by FY26. To support this initiative, it has increased capital spending by 155% for its NEV facility. Officials believe that this strategic move will enhance the company’s competitive position in the evolving automotive landscape.
With rising demand and a focus on innovation, Sazgar appears well-positioned to continue driving growth in Pakistan’s auto market. The company’s ability to adapt to changing consumer preferences and leverage favorable economic conditions has been a key factor in its recent success. As it prepares for the next phase of expansion, Sazgar is setting the stage for sustained growth and long-term value creation.
Key Highlights
- Sales Growth: 1,349 four-wheelers sold in June 2025, up 47% from May and more than double the figure from June 2024.
- Production vs. Sales: Production in June was 985 units, while sales reached 1,349, highlighting strong demand.
- Three-Wheeler Performance: Sold 2,435 three-wheelers in June, exceeding production of 1,420 units.
- Annual Performance: 8,313 four-wheelers sold in the first nine months of FY25, a 159% increase from the previous year.
- Profit Increase: Profit rose by 105% to Rs6.23 billion in FY25.
- Market Expansion: Hybrid models like Haval have played a major role in increasing market presence.
- Share Price Movement: Reached an intra-day high of Rs1,248.85 before closing at Rs1,192.32 per share.
- Future Strategy: Plans to launch NEVs by FY26, with a 155% increase in capital spending for the project.
As the automotive industry in Pakistan continues to recover, Sazgar Engineering Works is poised to lead the charge with innovative products and strategic investments. Its commitment to meeting market demands and embracing new technologies positions it as a key player in the sector’s growth trajectory.
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