Sazgar Engineering to Hold Vehicle Prices Steady Despite New Tax

Sazgar Engineering Works (SAZEW), a company involved in the production and distribution of automobiles, automotive components, and household appliances, announced on Friday its decision to maintain current vehicle prices for consumers, despite the introduction of a new tax in the Budget 2025-26.

In a communication addressed to Haval dealers throughout Pakistan on Friday, the company stated it would absorb the impact of the “additional levy to ensure that the final payment of our vehicles remains unchanged”.

“Following the recent announcement of the Federal Budget 2025, a new government levy under New Energy Vehicles Adoption Levy Act, 2025 has been imposed on all our vehicles. As a responsible and customer-focused organisation, Sazgar has consistently taken proactive measures to protect the interests of its valued customers.

Sazgar records ‘second-highest’ 4-wheeler sales in June 2025

“True to this commitment, we are pleased to inform you [dealers] that the company has decided to absorb the impact of this additional levy to ensure that the final payment of our vehicles remains unchanged including all taxes and duties,” the letter stated.

It is worth noting that several industry participants have raised their vehicle prices to offset the impact of the levy on production expenses this week. These include Lucky Motors (assembler of Kia cars), Pak Suzuki Motor, and Atlas Honda, a motorcycle manufacturer in the nation.

Car sales in Pakistan experienced a 39% increase during the initial eleven months of FY25, reaching 126,226 units, compared to the corresponding period in the previous fiscal year, FY24.