Sazgar Engineering Works Limited (SAZEW), a prominent Pakistani auto manufacturer, revealed on Monday its ambitious plan to introduce New Energy Vehicles (NEVs) in Pakistan by the end of 2025.
The company, listed on the Pakistan Stock Exchange (PSX), confirmed it will initiate the rollout of Completely Knocked Down (CKD) NEV models before December 31, 2025.
In a notice to the PSX, Sazgar’s Board of Directors (BoD) announced an extensive expansion strategy that includes upgrading its existing paint shop, constructing new warehousing facilities, installing a 4-megawatt solar power system, and establishing new manufacturing units for local NEV assembly, pending regulatory approvals.
NEVs encompass vehicles powered by alternative energy sources rather than conventional internal combustion engines (ICE) reliant on fossil fuels. They primarily fall into three categories: hybrid electric vehicles (HEVs), fuel cell electric vehicles (FCEVs), and battery electric vehicles (BEVs).
Sazgar, known for its production of automobiles, three-wheelers, automotive parts, and household electric appliances, disclosed that the expansion will incur an estimated cost of Rs4.5 billion, excluding land costs, which will be funded through the company’s internal resources.
The notice also highlighted Sazgar’s impressive financial results, reporting a profit of Rs7.94 billion for FY24—a staggering increase of 697% from Rs995 million in the previous year. The BoD recommended a final cash dividend of Rs12 per share, which is in addition to the interim dividend of Rs8 per share already distributed.
Despite these positive developments, Sazgar’s share price fell sharply during Monday’s trading session, closing at Rs973.75, down by Rs45.88.
The recent surge in Pakistan’s automotive sector has seen Electric Vehicles (EVs) emerge as a key growth area. Just last week, Dewan Farooque Motors Limited (DFML) announced it had begun EV production after receiving clearance from the Engineering Development Board (EDB). Furthermore, Chinese electric vehicle 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 last month.
The government has also stated that the first locally produced four-wheeled EV is expected to be available by December.
