Sazgar Sells 52% More Vehicles than it Builds as Output Falls

KARACHI: Pakistan's Sazgar Engineering Works sold 52% more four-wheelers than it produced in August and September. Its output fell about 38% from a year earlier while sales held steady, the company's stock exchange filing showed on Tuesday.

The Lahore-based assembler of Haval and BAIC vehicles built 1,622 four-wheelers in the two months and sold 2,474, according to the filing with the Pakistan Stock Exchange (PSX). The difference comes to 852 units.

In August and September 2025, Sazgar produced 2,602 four-wheelers and sold 2,478. Topline Securities described the latest sales figure as broadly flat year-on-year.

The filing did not explain why sales exceeded production or why output declined. It also reported August and September as one combined period, without separate monthly figures.

Also Read: Sazgar Holds Car Prices, Bets Rs22 Billion on Massive Expansion

Sales running ahead of production usually indicate that a company has drawn on stock built in earlier months, analysts say, though Sazgar did not say so in its disclosure.

Sazgar's three-wheeler business showed the opposite pattern. The company produced 5,481 rickshaws and sold 5,173 in the two months. Across both segments, Sazgar sold 7,647 vehicles against production of 7,103.

LAND PURCHASE

In a separate filing on Tuesday, Sazgar said it had bought 26.7 kanals of land on Main Raiwind Road in Lahore for 867.75 million rupees ($3.1 million), excluding taxes and incidental expenses. That works out to about 32.5 million rupees per kanal.

The company said the plot sits next to its three-wheeler unit and that it bought the land to meet future business requirements. It did not say what it planned to build there.

The production slowdown follows a record year. Sazgar sold about 19,200 four-wheelers in the fiscal year ended June 2026, up roughly 76%, and reported profit after tax of 23.6 billion rupees, up 44%.

The company is investing 22 billion rupees to expand its car plant. Management has said the expansion will raise capacity to about 180 vehicles a day from around 100, with the new facility expected to start operating within nine to 10 months.

At a recent corporate briefing, management said delays in Pakistan's new auto policy were weighing on sales. It said demand should improve once the government clarifies vehicle classification, taxation and pricing.

Sazgar continues to widen its line-up. This week it opened bookings for the ARCFOX T5, a range-extended electric SUV, priced from 10.195 million rupees, with deliveries due in three to four months. Topline expects the company to launch the Cannon Alpha pickup in the coming months.

Sazgar has technical and cooperation agreements with China's Great Wall Motor and BAIC.