Sazgar Engineering Works Limited (SAZEW) reported earnings per share of PKR 270.26 for FY25, compared to earnings per share of PKR 131.29 in FY24. Furthermore, in 4QFY25, the company reported earnings per share of PKR 57.59, compared to earnings per share of PKR 57.69 in the same period last year (SPLY). The company’s actual output is running closer to 60 vehicles per day, compared to its installed capacity of 40. Following the planned expansion, management expects single-shift capacity to rise to 100–120 vehicles per day, with the enhanced facility designed to assemble the complete model range, including NEVs, hybrids, EVs, and petrol variants.
The PHEV variant received a strong initial response, pushing delivery timelines from 2–3 months to 3–4 months due to an unprecedented surge in bookings. At the same time, management highlighted that petrol H6 volumes have skyrocketed, leaving the current sales mix more petrol heavy despite continued growth in hybrids. In 4QFY25, the reported gross profit margin eased to 25.1%, down from 32.6% in the March quarter, which the company attributed to a higher share of lower margin variants. Looking ahead, management guided that, post-expansion, the company aims to broaden its portfolio and compete more aggressively in mainstream SUV price bands. Once the plant ramps up after March 2026, SAZEW plans to introduce the Tank PHEV and Canon PHEVs.
Management also highlighted that the overall light-vehicle market has grown to 120–130k units annually and continues to expand, and the company intends to grow in line with industry trends. On the export front, SAZEW is evaluating additional routes and aims to expand three-wheeler placements in Afghanistan, Mexico, and the Philippines.
The three-wheeler segment is now localized up to 80%, which strengthens competitiveness. By contrast, four wheeler exports remain uneconomical at this stage. The current auto policy, which underpins SAZEW’s concessional duty structure, will expire in 2026, after which duties will revert to normal unless renewed. Management’s mitigation strategy is to leverage the expanded capacity coming online by then, driving higher volumes to dilute unit costs and resetting prices where required.
Important Disclosures
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