Sazgar to launch first locally assembled hybrid crossover SUV

KARACHI: Sazgar Engineering Works Limited has assembled the country’s first hybrid crossover SUV locally, which is being launched today, Thursday, November 17, a statement said on Wednesday.

The company will be using Chinese completely knocked-down (CKD) and sub-assembly plant while the ex-factory price of the vehicle, Haval H6 HEV, is expected to be around Rs9.7 million.

In a statement to Pakistan Stock Exchange, the company secretary said, “We are pleased to inform you that the company has successfully assembled/manufactured locally the first hybrid electric vehicle (HEV) of Pakistan and is being launched under brand HAVAL.”

Reports suggest that its booking

has already started and the first vehicle was handed over to a customer in Islamabad.

However, analysts said the company was taking a big risk at the time when there was political instability in the country and it was difficult to import the CKD material, as the country’s foreign exchange reserves were badly falling.

It is not clear whether the State Bank of Pakistan had given any exclusive relaxation to the company for the import of CKD material.

The vehicle is said to come in competition with Toyota’s hybrid Corolla Cross, which has yet to be assembled in launched in Pakistan in 2023. Earlier this year, Indus Motors, a manufacturer of Toyota vehicles in Pakistan, has announced the expected launch of the Corolla Cross next year.

However, SUV lovers say that Haval H6 HEV at that price is costlier than other crossover SUVs running on petrol in the country, costing more than Rs2 million in price with the other SUVs available in the country.

Auto sector expert and former chairman Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM), Mashood Ali Khan said it was good that a Chinese original equipment manufacturer (OEM) or Chinese company was launching a hybrid vehicle in Pakistan that would be a new variety to the public.

Whether they will get any relaxation by the SBP on the import of CKD and sub-assembly material, was not clear and remained a challenge.

“Pakistan’s foreign exchange reserves are gradually falling down, and letters of credit are becoming difficult. Importing CKDs and sub-assembly plants is a bit difficult and providing a booking commitment will be a challenge,” he said.

Khan wondered how the company would provide delivery on time to customers until the raw material import situation was improved. “It would be difficult for the OEM to launch such a vehicle in these conditions. We are hopeful that economic activity will improve in December. Until then, it will be a challenge.”