Sazgar eyes EV launch

Sazgar Engineering Works Ltd (SEWL) plans to introduce the ARCFOX range of electric vehicles in Pakistan, according to a stock filing made on Friday. The filing described ARCFOX as a high-end intelligent electric brand from BAIC Group, developed with engineering and technology input from Magna and Huawei. Dawn reported that the choice between local assembly under CKD and imports under CBU depends on the new auto policy.

In a corporate briefing on Saturday, management placed ARCFOX in the semi-premium segment, among the higher-ranked of China's 109 car brands. Management expects the Canon Alpha to arrive within months and says it will be priced competitively. The NEV lineup shown at the Pakistan Auto Show last week also included Tank 300 and Jolion Max models, and the company believes the government is likely to back plug-in hybrids, shaping future launches.

Topline Securities analyst Sania Irfan said Sazgar is absorbing the higher GST for now, anticipating a more favourable auto policy that could bring lower taxes. Prices have not been raised despite the 18pc GST, and management is holding off major pricing decisions until the policy is announced. Separately, Sazgar announced a Rs22bn expansion including a new paint shop due in 9 to 10 months, with about Rs17bn of the capex financed by debt.