Sazgar Engineering to launch New Energy Vehicles in Pakistan by 2025

Sazgar Engineering Works Limited (SAZEW), a leading Pakistani auto manufacturer, has announced its plans to introduce New Energy Vehicles (NEVs) in the country. The company aims to roll out CKD (completely knocked down) models of NEVs by the end of December 31, 2025, reported Business Recorder.

The Board of Directors of Sazgar has approved an expansion plan, which includes the expansion of its existing paint shop, construction of new warehousing facilities, installation of a 4-megawatt solar system, and construction of new manufacturing facilities for local assembly of NEVs, subject to regulatory approval from relevant government authorities.

NEVs are vehicles powered by alternative energy sources, such as hybrid electric vehicles, fuel cell electric vehicles, and battery electric vehicles. Sazgar, which is engaged in the manufacture and sale of automobiles, three-wheelers, automotive parts, and household electric appliances, will finance the expansion plan worth Rs4.5 billion through internal cash resources.

The company’s latest financial results show a significant increase in profit, rising to Rs7.94 billion in FY24, an exponential growth of 697% compared to Rs995 million in the same period last year. The Board of Directors has recommended a final cash dividend of Rs12 per share, in addition to the interim cash dividend already paid at Rs8 per share.

Despite the positive results, Sazgar’s share price plummeted during Monday’s session, closing at Rs973.75 after a fall of Rs45.88.

Pakistan’s auto sector is witnessing significant developments, with Electric Vehicles (EVs) emerging as a growing sector with immense potential to transform the country’s automotive landscape. Recently, Dewan Farooque Motors Limited (DFML) started production of EVs at its assembly plant after receiving approval from the Engineering Development Board (EDB). BYD, a Chinese electric vehicle giant, also announced its entry into Pakistan, making it one of its newest markets. Additionally, Master Changan Motors Limited unveiled its electric vehicle brand in Pakistan, launching the Deepal L07 sedan and Deepal S07 SUV in Karachi last month. The government has also claimed that Pakistan’s first locally produced four-wheeled EV will hit the market in December.