Sazgar Shields Customers From Tax Hike and Unveils Massive Plant Expansion
In a major relief for car buyers, Sazgar Engineering Works Limited has decided not to pass on the recent increase in General Sales Tax (GST) to its customers. At the same time, the company has unveiled an ambitious Rs22 billion plant expansion plan that will significantly boost its production capacity.
During a recent corporate briefing, Sazgar management confirmed that the company is currently absorbing the higher GST rate of 18% applicable on hybrid and plug-in hybrid electric vehicles (HEVs and PHEVs). Instead of raising prices, Sazgar is protecting existing and new customers from the tax burden.
Management explained that the company is waiting for the government’s new auto policy, which is expected to provide greater clarity and possibly more favourable taxation. Until then, Sazgar will continue to maintain current prices so that buyers are not forced to pay extra due to the tax hike.
Alongside this customer-friendly move, Sazgar announced a major capacity expansion. The company is investing Rs22 billion to upgrade its manufacturing facilities, including the installation of a new fully automated paint shop. Once completed, daily production capacity is expected to rise from around 100 vehicles to approximately 180 vehicles per day.
The expansion project is scheduled to be completed within nine to ten months. Out of the total investment, around Rs17 billion will be financed through debt, while the remaining amount will come from equity and internal resources.
This decision comes at a time when Sazgar is already enjoying strong growth. The company recently reported a record profit after tax of Rs23.6 billion for fiscal year 2026 a 44% increase compared to the previous year driven mainly by higher sales of Haval and GWM vehicles.
By choosing to absorb the tax increase and simultaneously expanding production, Sazgar is sending a clear message: it prioritises customer trust while preparing for long-term growth in Pakistan’s evolving automotive market.
Industry observers see this as a positive and strategic step that could further strengthen Sazgar’s position as one of the fastest-growing automakers in the country.
