Karachi, September 23, 2024 – Sazgar Engineering Works Limited (SAZEW), a leading Pakistani auto manufacturer, announced on Monday its ambitious plans to locally assemble New Energy Vehicles (NEVs) in Pakistan, marking a significant step towards the country’s shift to alternative energy transportation.
In a notice submitted to the Pakistan Stock Exchange (PSX), the company revealed its intent to roll out Completely Knocked Down (CKD) models of NEVs before December 31, 2025. NEVs refer to vehicles powered by alternative energy sources, as opposed to traditional internal combustion engines (ICE) that rely on fossil fuels like gasoline or diesel. These vehicles include hybrid electric vehicles (HEVs), fuel cell electric vehicles (FCEVs), and battery electric vehicles (BEVs).
To facilitate this ambitious project, Sazgar’s Board of Directors (BoD) has approved an expansion plan that will enhance the company’s manufacturing capabilities. This includes expanding the existing paint shop, constructing new warehousing facilities, installing a 4-megawatt solar power system, and developing new manufacturing facilities for the local assembly of NEVs. The expansion plan, however, remains subject to approval from relevant government regulatory authorities.
The estimated cost of the expansion is projected to be Rs4.5 billion, excluding the cost of land. The company plans to finance the project from its internal cash resources, demonstrating its commitment to driving innovation and expanding its footprint in Pakistan’s growing automotive market.
Sazgar, already known for its manufacturing and sale of automobiles, three-wheelers, automotive parts, and household electric appliances, is betting on NEVs as the future of transportation in Pakistan. As environmental concerns rise and the world transitions to cleaner energy solutions, Sazgar’s move to introduce energy-efficient vehicles reflects its forward-thinking strategy to capitalize on this global trend.
In addition to announcing its expansion plans, Sazgar also released its financial results for FY24, reporting a remarkable increase in profitability. The company’s profit surged to Rs7.94 billion, a staggering 697% increase compared to Rs995 million in the previous fiscal year. This exponential growth is indicative of Sazgar’s strong market performance and operational efficiency.
The BoD also declared a final cash dividend of Rs12 per share (120%), in addition to an interim dividend of Rs8 per share already paid.
Despite the positive financial news, Sazgar’s share price faced a decline during Monday’s trading session, closing at Rs973.75 after a drop of Rs45.88. Market analysts believe that the decline was due to profit-taking, following the stock’s recent rally.
Sazgar’s expansion into the NEV market positions it as a key player in Pakistan’s automotive future, as the country looks toward cleaner, sustainable energy solutions.
