Sazgar to Double Capacity with New Plant by 4QFY26
Sazgar Engineering Works Limited (SAZEW) has announced that it will double its capacity as a new manufacturing plant is expected to become operational in 4QFY26.
The company has also revised its planned capex upward from Rs4.5 billion to Rs11.5 billion for the new manufacturing plant, which is expected to become operational in 4QFY26. The expansion will double production capacity from 40- 60 four-wheelers per day to 120 units/day.
Sazgar Engineering Works Limited (SAZEW) conducted its corporate briefing on Thursday to discuss the company’s FY25 financial results and future outlook.
Management highlighted that the recent floods had no significant impact on operations other than temporary road closures, which may cause limited delays in vehicle deliveries.
On margin compression in 4QFY25, the company explained that the decline was primarily due to higher sales of lower-margin variants.
Management noted that the response to the newly launched PHEV has been overwhelming, leading to a one-month delivery delay to meet strong demand. Currently, petrol variants account for the majority of revenues. Moreover, only petrol and HEV variants qualify for greenfield exemptions, while PHEVs do not.
On the export front, the company is actively pursuing opportunities for three-wheeler export in international markets, including Japan. However, exporting four-wheelers remains economically unfeasible at present.
Regarding the relaxation of used car imports, management clarified that SAZEW will be the least impacted; however, the company is actively pursuing the matter with the government on behalf of the industry as a whole.
