New Energy Vehicles: Sazgar delays launch till March 2026; expansion scaled up

Sazgar Engineering Works Limited (SAZEW), a Pakistani auto manufacturer, has revised its expansion plan for the four wheelers manufacturing facilities, delaying the rollout of its locally assembled New Energy Vehicles (NEVs) to March 2026, while significantly increasing the project’s cost to Rs11.5 billion from the earlier Rs4.5 billion.

The company announced the development in a notice to the Pakistan Stock Exchange (PSX) on Monday in which it also shared the financial results for the quarter ended March 31, 2025.

As per the notice, the Board of Directors of the company approved the revision in expansion plan of the four wheelers division. The revised plan includes expansion of existing paint shop, construction of new warehousing facilities, and installation of solar system of 5.7-megawatt.

The Board also gave approval for construction and installation of new manufacturing/assembly facilities for the local assembly of NEVs subject to the approval of relevant Government Regulatory Authorities.

“The Board has also approved the revision in estimated cost of the expansion plan from PKR 4.50 Billion to PKR 11.50 Billion (without cost of land) which shall be financed through the internal cash generation of the Company.

The first roll out the CKD [Completely Knocked Down] model of New Energy Vehicles is now expected before the end of March 31, 2026, revised from earlier target of December 31, 2025,“ the notice read.

NEVs refer to vehicles that are powered by alternative energy sources instead of traditional internal combustion engines (ICE) that run on fossil fuels like gasoline or diesel. They can be divided into three main categories i.e. hybrid electric vehicles (HEVs), fuel cell electric vehicles (FCEVs), and battery electric vehicles (BEVs).

In September last year, Sazgar announced its plan to roll out the CKD models of NEVs before the end of December 31, 2025.

Later in November, the company revealed plans to purchase land valued at approximately Rs1.54 billion “to meet future business requirements”.