Sazgar Engineering set to assemble EVs in Pakistan by Dec 2025

Sazgar informs that its board has approved an estimated cost of expansion amounting to Rs4.5 billion

Tech Desk - Sep 23, 2024

An undated image of Sazgar ORA 03. — Sazgar

Sazgar Engineering Works Limited (SAZEW), a Pakistani auto manufacturer, unveiled that it is set to launch New Energy Vehicles (NEVs) in Pakistan soon.

Moreover, the listed company plans to launch the Completely Knocked Down CKD models of NEVs before the end of December 31, 2025.

The Pakistan Stock Exchange (PSX) notice stated: “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.”

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

Sazgar informed that its board has also approved an estimated cost of the expansion amounting to Rs4.5 billion, without the cost of land, which shall be financed from the internal cash resources of the company.

Moreover, in its notice, the company shared its latest financial results according to which Sazgar’s profit boosted to Rs7.94 billion in FY24, an exponential increase of 697%, compared to Rs995 million in the same period of the previous year.

In addition, the Board of Director of the company suggested a final cash dividend of Rs12 per share i.e. 120%. This is in addition to the interim cash dividend already paid at Rs8 per share. Despite the results, the company’s share price dropped during Monday’s session, closing at Rs973.75 after a fall of Rs45.88.

Previously, Dewan Farooque Motors Limited (DFML) enlightened its stakeholders that it had commenced production of EVs at its assembly plant after receiving approval from the Engineering Development Board (EDB).

Moreover, the government said that Pakistan’s first locally produced four-wheeled EV would arrive in the market in December.