Sazgar Engineering Works Limited (SAZEW), a prominent player in the automotive industry, faced a significant downturn in sales during December 2023, as reported in its filing on the Pakistan Stock Market (PSX). The company’s sales of Auto Rickshaws plummeted by 64.42% Month over Month (MoM), from 773 units in November to only 275 units in December. On the production front, the company manufactured 1,004 Auto Rickshaws in December, showcasing a slight increase from the 848 units produced in the previous month.
The situation did not only affect three-wheelers, as SAZEW’s four-wheel off-road and passenger vehicle sales fell precipitously, from 269 units to just 29 units month over month. Positively, though, the production of these cars increased significantly, rising by 23.98% MoM to 424 units in December 2023.
In face of these challenges, SAZEW remains a key player in the market. The Board of Directors recently approved the acquisition of land worth approximately Rs847 million, expanding its four-wheeler project. The company’s commitment to innovation is evident as it received the first license for electric rickshaw manufacturing, a significant step towards embracing sustainable technology. This license was granted at a special ceremony organized by the Punjab Transport Department in Lahore.
Parallel to this, Punjab’s electric vehicle scene is about to change, with SAZEW leading the way. Mohsin Naqvi, the acting chief minister of Punjab, expressed hope for Pakistan’s transition to an all-electric car market. An important step to promote the use of electric vehicles was taken when the government revealed plans to give away 26,000 electric rickshaws and motorbikes without charging interest.
Notwithstanding these encouraging developments, SAZEW’s shares have decreased as a result of the market’s reaction to the company’s poor December sales results. With a current market value of Rs211.20, the stock is down 2.91% for the day.
The industry and analysts are eager to see how SAZEW will handle these difficulties and seize the chances given by Pakistan’s rapidly expanding electric vehicle market.
