KARACHI: Local assemblers continue to bring more new energy vehicles (NEVs) as Sazgar Engineering Works Ltd (SEWL) intends to introduce ARCFOX NEVs in Pakistan, further expanding its NEV portfolio.
In a stock filing on Friday, the company said ARCFOX, a BAIC Group high-end intelligent electric vehicle brand, combines premium design and advanced technology, with engineering and technology collaborations involving Magna and Huawei.
In a corporate briefing on Saturday, the management said ARCFOX is positioned high in the semi-premium segment and ranks among the higher-positioned brands among China’s 109 automotive brands. The company’s decision to introduce ARCFOX through CKD versus CBU remains contingent on the new auto policy.
The government is likely to support PHEVs going forward. The company said future product launches willbe based on this view.
The launch of Canon Alpha is expected in the coming months,with management indicating it will be priced competitively. The company also displayed a broad upcoming NEV lineup at the Pakistan Auto Show (PAPS) last week, alongside the Tank 300 and Jolion Max, the company said.
According to Sania Irfan of Topline Securities, the company is currently absorbing the GST increase as it expects a favourable auto policy to be announced soon, potentially with lower taxes.
She noted that, being customer-centric, Sazgar does not want to hurt customers purchasing vehicles today with the higher GST.
Sazgar’s management, she said, is waiting for the new auto policy before making major pricing decisions. Current prices are based on existing notified taxes, and the company said it is not increasing prices despite 18pc GST for now.
The company has announced a Rs22bn expansion, including a new paint shop, which management expects to be completed within 9-10 months. Of the total Rs22bn capex required, around Rs17bn will be financed by debt, and the remaining through equity.