Sazgar Engineering Works Limited (SAZEW), a Pakistani auto manufacturer, on Monday announced its plans to launch New Energy Vehicles (NEVs) in the country.
The listed company also plans to roll out the CKD [Completely Knocked Down] models of NEVs before the end of December 31, 2025, it informed in a notice to the Pakistan Stock Exchange (PSX).
“The Board of Directors (BoD) of the company has approved an expansion plan of the company which includes the expansion of existing paint shop, construction of new warehousing facilities, installation of solar system of 4-megawatt and construction, erection, installation of new manufacturing facilities for the local assembly of NEVs subject to the approval of relevant government regulatory authorities,” read the notice.
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).
Sazgar, engaged in the manufacture and sale of automobiles and three-wheelers, automotive parts and household electric appliances, informed that its board has also approved an estimated cost of the expansion amounting to Rs4.5 billion, without cost of land, which shall be financed from the internal cash resources of the company.
In its notice, the company also shared its latest financial results according to which Sazgar’s profit increased to Rs7.94 billion in FY24, an exponential increase of 697%, as compared to Rs995 million in the same period of the previous year.
The BoD of the company also recommended a final cash dividend of Rs12 per share i.e. 120%. This is in addition to interim cash dividend already paid at Rs8 per share.
Despite the results, the company’s share price plummeted during Monday’s session, closing at Rs973.75 after a fall of Rs45.88.
In recent weeks, several developments have been making rounds in Pakistan’s auto sector, with Electric Vehicles (EVs) emerging as a growing sector with significant potential to transform the country’s automotive landscape.
Last week, Dewan Farooque Motors Limited (DFML) informed its stakeholders that it had commenced production of EVs at its assembly plant after receiving approval from the Engineering Development Board (EDB).
Also last month, Chinese electric vehicle giant BYD announced its entry into Pakistan, making the South Asian nation of nearly 250 million people one of its newest markets.
Additionally, Master Changan Motors Limited also unveiled its electric vehicle brand in Pakistan, launching the Deepal L07 sedan and Deepal S07 SUV in Karachi last month.
The government also claimed that Pakistan’s first locally produced four-wheeled EV would hit the market in December.