Haval maker: Sazgar says not increasing vehicle prices despite new tax

Sazgar Engineering Works (SAZEW) - company engaged in manufacturing and sale of automobiles, automotive parts and household electric appliances - said on Friday it had decided not to increase its vehicle prices for end-consumers despite imposition of a new tax in the Budget 2025-26.

In a letter sent to Haval dealers in Pakistan on Friday, the company said it was absorbing 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 read.

To recall, some of the industry players have increased their vehicles prices to pass on the impact of the levy on cost of production this week, including Lucky Motors (the assembler of Kia cars), Pak Suzuki Motor and Atlas Honda - the bike manufacturer in the country.

The car sales in Pakistan surged 39% in the first 11 months of FY25, standing at 126,226 units in the under review period compared to the same period of the prior fiscal year; FY24.