Sazgar to launch hybrid SUV Tank-500, approves Rs22 billion expansion strategy

Sazgar Engineering Works has announced the roll out its hybrid SUV Tank-500 Hi4-T 4X4 2.0L Turbo AT, with trial production of the CKD model scheduled by the end of March 2026, marking its entry into the hybrid vehicle segment.

In a notice to the Pakistan Stock Exchange, the company said the model will be available in both hybrid electric vehicle and plug-in hybrid electric vehicle variants as part of its expansion into energy-efficient vehicles.

The rollout comes alongside a broader expansion strategy, with the company completing its existing four-wheeler expansion plan worth Rs11.5 billion, including installation of a new assembly line, a 5.7-megawatt solar system and warehousing facilities.

Sazgar said Rs6.5 billion has already been spent on the expansion, while the remaining Rs5 billion has been reallocated towards setting up a fully automated paint shop facility.

The board has also approved a new expansion plan with an estimated cost of Rs22 billion, excluding land, for the installation of a fully automated paint shop, civil works and ancillary equipment.

The company said the expansion will be financed through internal cash generation and bank borrowing, and is expected to increase the total installed production capacity of its four-wheeler plant to 54,000 units annually on a single-shift basis.

In addition, the board has approved a budget of Rs4 billion for the purchase of approximately 900 kanals of land near its car plant to support future expansion. The company also plans to acquire a 5-kanal commercial plot for around Rs1.1 billion in Lahore for a showroom, aftersales services and office facilities.

The board also approved a set of appointments for a three-year term starting March 28, 2026. Mrs Saira Asad Hameed was appointed chairperson, Mr Mian Asad Hameed was named chief executive, Mr Saeed Iqbal Khan was appointed executive director and chief operating officer for the three-wheelers and automotive parts division, and Mr Mian Muhammad Ali Hameed was appointed executive director and chief operating officer for the car division.