Sazgar Engineering to Launch Local Assembly of Electric Vehicles by December 2025

Sazgar Engineering, a leader in Pakistan’s automotive industry, is taking a major leap forward by announcing its plans to locally assemble Electric Vehicles (EVs) by December 2025. This move represents a pivotal development in the nation’s automotive landscape, pushing toward a greener and more sustainable future.

A Step Towards Sustainability

As one of Pakistan’s prominent automotive manufacturers, Sazgar is known for its popular rickshaws and four-wheeler cars. The company’s entry into the electric vehicle market aligns with the government’s broader initiative to reduce reliance on imported vehicles and promote environmentally friendly technologies. With the introduction of local EV production, Sazgar aims to support the country’s environmental goals while creating job opportunities and encouraging technological advancement.

The growing global demand for EVs, combined with government incentives for green technology, makes this the ideal time for Sazgar to expand into the electric vehicle sector. As a result, the automotive industry in Pakistan is expected to experience significant growth, attracting local and international investors.

Plans for CKD NEV Models

Sazgar’s move into EV production will also include the roll-out of CKD (Completely Knocked Down) models of New Energy Vehicles (NEVs) by December 2025. This development was confirmed through a notice to the Pakistan Stock Exchange (PSX), showcasing the company’s commitment to diversifying its product lineup and contributing to a cleaner environment.

The Board of Directors (BoD) at Sazgar has approved several critical expansions, including:

• The expansion of the existing paint shop
• Construction of new warehousing facilities
• Installation of a 4-megawatt solar system
• Establishment of new manufacturing facilities for the local assembly of NEVs

These efforts reflect the company’s ambition to become a key player in Pakistan’s EV market, setting the stage for further advancements in sustainable automotive technology.

Financial Growth and Market Impact

Sazgar Engineering has shown significant financial growth, reporting a remarkable profit increase of 697% in FY24, reaching Rs7.94 billion, compared to Rs995 million in the previous year. The company has also recommended a final cash dividend of Rs12 per share, further solidifying its position as a major player in the market.

This expansion is not happening in isolation, as several other automotive manufacturers in Pakistan are also entering the electric vehicle space. Dewan Farooque Motors Limited (DFML) has begun producing EVs at its assembly plant, and Chinese EV giant BYD has also entered the Pakistani market. Furthermore, Master Changan Motors Limited recently launched its electric vehicle brand in Pakistan, unveiling the Deepal L07 sedan and Deepal S07 SUV.

Our Verdict

Sazgar Engineering’s local assembly of electric vehicles marks a major milestone for Pakistan’s automotive industry. With the country’s first locally produced four-wheeled EV expected to hit the market by December, this initiative is set to have a lasting impact on the environment, economy, and technological landscape. As the demand for EVs grows globally, Sazgar’s bold move into this sector positions the company as a trailblazer in driving sustainable change in Pakistan.

For more updates on electric vehicle developments and industry news, visit Auto Power.

Fahad Anwar

Fahad, a dynamic entrepreneur and fervent marketing enthusiast, channels his passion for contemporary trends into captivating written pieces. Beyond the business realm, he finds solace in the exhilaration of travel and the strategic thrill of tennis during leisure moments. Connect with Fahad’s insights on trending topics via his Twitter handle @fahad164. For inquiries and collaboration opportunities, reach out to him at fahad164@gmail.com or fahad@themediaparadigm.com.