In a rare and refreshing move for Pakistan’s auto industry, Sazgar Engineering Works Limited — the assembler and distributor of Haval vehicles — has announced that it will not increase the prices of its popular hybrid SUVs despite the implementation of the new New Energy Vehicles Adoption Levy (NEV Levy) under the 2025–26 Federal Budget.
While most automakers in Pakistan have already begun passing on the impact of the NEV Levy to customers, Sazgar has chosen a different path. According to the company’s official statement, the management has internally adjusted the NEV Levy within its cost structure by slightly reducing ex-factory prices, ensuring that the final retail price for customers remains unchanged. This means that buyers of Haval’s models, such as the popular H6 HEV, will pay the same amount they did before the new tax came into effect.
This decision stands out in a market where frequent price hikes have become the norm with every new tax or policy shift. By absorbing the NEV Levy cost, Sazgar is positioning itself as a customer-focused brand determined to build long-term loyalty and protect its market share amid rising competition in Pakistan’s growing hybrid SUV segment.
The Hybrid SUV War: Haval vs. Kia vs. Hyundai
Sazgar’s pricing strategy gains even more significance when seen in light of the fierce rivalry among hybrid SUVs in Pakistan. Haval’s H6 HEV made waves when it first launched, offering modern features and competitive performance that challenged the market leaders. In response, Kia introduced the Sportage L HEV, and Hyundai countered with an updated version of the Tucson HEV.
Today, these three models dominate Pakistan’s hybrid SUV segment:
- Hyundai Tucson HEV (Base Variant): Rs. 10,999,000
- Kia Sportage HEV: Rs. 11,599,000
- Haval H6 HEV: Rs. 11,749,000
Despite being priced slightly higher than the Sportage HEV, the Haval H6 HEV has attracted buyers thanks to its modern styling, tech features, and Sazgar’s robust local support. By holding its price steady while Kia Lucky Motors has already increased the Sportage HEV’s price, Sazgar is sending a strong message about its commitment to value.
A Smart Strategy for Tough Times
In an era of record inflation and declining purchasing power, absorbing additional taxes rather than passing them on to buyers could help Sazgar cement customer trust and loyalty. It also places competitive pressure on rivals who may now find it harder to justify further price hikes.
Meanwhile, Hyundai is also well-positioned to maneuver smartly. With the Tucson HEV’s base variant being the most affordable option in this lineup, Hyundai can adjust pricing slightly if needed to account for the NEV Levy while staying attractive to budget-conscious buyers.
What It Means for Car Buyers in Pakistan?
Sazgar’s bold decision to maintain prices could reshape consumer expectations in the hybrid SUV market. As buyers become more price-sensitive, moves like this can revive confidence and drive brand preference in a segment where every rupee counts.
While it remains to be seen whether other automakers will follow suit, Sazgar has made one thing clear: in today’s challenging market, prioritizing the customer can be just as powerful as any marketing campaign.
Afsheen Gohar is a seasoned writer with a wealth of experience in crafting authentic and well-researched articles. Her dedication to delivering high-quality content is evident in her work, where she combines a passion for storytelling with a commitment to accuracy and depth. Afsheen’s writing reflects her ability to engage readers with compelling narratives while providing valuable insights on a diverse range of topics.
