Sazgar Engineering Works Limited (SAZEW), a major Pakistani manufacturer of three-wheelers and tractors, has announced an ambitious expansion to meet the country’s shifting automotive trends. The firm is committing Rs11.5 billion to increase vehicle output, aiming to produce up to 100 units daily by March 2026, more than twice its current capacity.
Research by Insight Securities said the move reflects Sazgar’s focus on the hybrid and electric segments, with plug-in hybrids at the centre of its strategy. The company believes plug-in hybrids can bridge the gap for Pakistani buyers hesitant about fully electric vehicles due to limited charging stations. Its Haval H6 PHEV, which runs 100 kilometres on battery power before switching to petrol, is being marketed as the solution to range concerns.
The company is also expanding its portfolio. Models like the fully electric Ora and the Tank-500 PHEV have already been introduced, and work is underway to assemble vehicles such as the Canon Alpha pickup locally. This wider range is designed to appeal to both premium and mass-market buyers.
Analysts said the expansion’s success will depend heavily on the government’s upcoming New Energy Vehicle (NEV) policy, expected to include tax cuts, duty reductions, and support for local manufacturing. They warned, however, that challenges such as policy delays, rupee depreciation, raw material costs, and new competition from brands like MG, Kia, and Hyundai could limit profits.