Sazgar Engineering Works Limited (SAZEW), a prominent Pakistani auto manufacturer, has announced its plans to introduce New Energy Vehicles (NEVs) in the country. The company aims to launch CKD (Completely Knocked Down) models of NEVs by December 31, 2025, according to a notice issued to the Pakistan Stock Exchange (PSX).
The company’s Board of Directors (BoD) has approved an expansion plan that includes enhancing the existing paint shop, building new warehousing facilities, installing a 4-megawatt solar system, and setting up manufacturing facilities for local NEV assembly, pending necessary government approvals.
NEVs are vehicles powered by alternative energy sources, diverging from traditional internal combustion engines. They fall into three categories: hybrid electric vehicles (HEVs), fuel cell electric vehicles (FCEVs), and battery electric vehicles (BEVs).
Sazgar, which manufactures automobiles, three-wheelers, automotive parts, and household electric appliances, has estimated the expansion cost at Rs4.5 billion, excluding land costs, to be financed through its internal cash resources.
In its recent financial report, Sazgar reported a remarkable profit increase to Rs7.94 billion for FY24, a staggering rise of 697% compared to Rs995 million the previous year. The BoD also recommended a final cash dividend of Rs12 per share, in addition to an interim cash dividend of Rs8 per share.
Despite these positive results, Sazgar’s share price dropped during Monday’s trading session, closing at Rs973.75 after a decrease of Rs45.88.
The Pakistani auto sector is witnessing significant developments, particularly in the Electric Vehicle (EV) segment. Recently, Dewan Farooque Motors Limited announced the commencement of EV production following approval from the Engineering Development Board (EDB). Additionally, Chinese EV manufacturer BYD has entered the Pakistani market, while Master Changan Motors Limited launched its electric vehicle brand, introducing the Deepal L07 sedan and Deepal S07 SUV in Karachi. The government has also stated that Pakistan’s first locally produced four-wheeled EV is set to launch in December.
