2023 was generally a year to forget for local assemblers and Pakistan’s auto industry on the whole due to several challenges including depreciating currency, rising car prices, supply chain disruptions due to import restrictions imposed by the government, and expensive auto financing which caused depleted sales that pushed the industry back to 20-year-old levels.
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However, although the industry was struggling, with every assembler experiencing an enormous decline in sales, only one player saw a meteoric surge in sales. And it was none other than Sazgar Haval.
Despite targeting a niche clientele, Haval experienced a spectacular 460% surge in sales for the calendar year 2023, selling an impressive 2,475 units compared to 442 units sold the previous year in 2022. And while Sazgar’s other venture with BAIC continues to struggle with its lone product BJ40 Plus, which saw only 141 units sold in 2023 compared to 468 units in 2022 for a dismal 70% decline in sales, the company is extremely well compensated by its Haval venture.
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Sazgar ventured with Haval in March 2021 having already teamed up with BAIC. Initially, the Haval H6 and Jolion were sold as CBU imported units but then the company started rolling off locally assembled H6 in September 2022, followed by the H6 hybrid in November 2022. In September 2023, the locally assembled Haval Jolion started rolling off the assembly lines as well.
Considering the fact that locally assembled Haval was first launched in September 2022, the average of its monthly sales was 110 units that year. Compared to this, the average of its sales in 2023 increased by 87% to 206 units a month, which is indeed quite impressive for a newly introduced brand in Pakistan having a Chinese origin.
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Even though the economy is in turmoil, with Haval on board, Sazgar’s revenues surged by 77% during the first half of 2023, while the performance during the second half of the year is expected to be equally impressive too (results awaited). More interestingly, for Sazgar over 80% of the half-year’s revenues came from four-wheelers, which implies the remaining 20% was made up of about 9,000 rickshaws and 37,500 tractor-wheel rims.
Pakistan’s annual vehicle production numbers have dwindled sharply in recent years, and it remains to be seen whether they can rebound to pre-crisis levels, if not improve much further. But Sazgar’s move with Haval has paid them off extremely well although they continue to struggle with the BAIC vehicles. Whether Haval will continue its impressive sales momentum in 2024, we will have to wait to find out.
A computer animation professional with over 23 years of industry experience having served in leading organizations, TV channels & production facilities in Pakistan. An avid car enthusiast and petrolhead with an affection to deliver quality content to help shape opinions. Formerly written for PakWheels as well as major publications including Dawn. Founder of CarSpiritPK.com
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