Pakistan’s automobile assembler, Sazgar Engineering Works Limited has signed an agreement with a Chinese automaker for the manufacture of passenger and commercial vehicles.

“We are pleased to inform you that in addition to BAIC brand, the company has also signed another Vehicle Assembly Technical and Cooperation Agreement with a renowned Chinese automobile manufacturer,” Sazgar said in a statement on Friday.

The company informed that the agreement is for the manufacture/assembly, sales, and after-sales service of passenger and commercial vehicles, which is subject to the approval of relevant government authorities.

Sazgar saw more than 50 percent of the revenue earned during the first quarter of FY21 as business activity began to resume after the lockdowns. Production volumes for the company for three-wheelers grew to 3,888 units, up from 2,479 units seen during 1QFY21.

Back in January, Sazgar announced its intention to enter the Pakistani car market with BAIC D20 that has a hatchback and a sedan version. The BAIC group is the third largest automotive group in China, which sells 3.5 million cars per annum.

It was learnt that Sazgar will be locally assembling its four cars under its green-field status, which the company received under the government’s Auto Development Policy 2016-21, alongside other car manufacturers like KIA, United Motors, Regal Motors, MG Motors, Changan, Proton, Hyundai and Volkswagen.