Sazgar Engineering Revises Expansion Plan, NEV Rollout Delayed to 2026

Sazgar Engineering Works Limited (SAZEW) has adjusted its expansion strategy for its four-wheeler manufacturing facilities. The launch of locally assembled New Energy Vehicles (NEVs) has been pushed back to March 2026. Additionally, the project’s cost has increased significantly from Rs4.5 billion to Rs11.5 billion.

The company informed the Pakistan Stock Exchange (PSX) of these changes on Monday, alongside its financial results for the quarter ending March 31, 2025.

According to the notification, the company’s Board of Directors has sanctioned the updated expansion plan for the four-wheeler division. The revised plan encompasses enhancements to the existing paint shop, the construction of new storage facilities, and the implementation of a 5.7-megawatt solar power system.

The Board also granted approval for the construction and setup of new manufacturing/assembly facilities dedicated to the local assembly of NEVs, contingent upon the approval of relevant government regulatory bodies.

“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 initial rollout of the CKD (Completely Knocked Down) model of New Energy Vehicles is now anticipated by March 31, 2026, a revision from the previous target of December 31, 2025,” the notice stated.

NEVs utilize alternative energy sources, differing from traditional internal combustion engines (ICE) that rely on fossil fuels. These vehicles are categorized into hybrid electric vehicles (HEVs), fuel cell electric vehicles (FCEVs), and battery electric vehicles (BEVs).

In September of the preceding year, Sazgar unveiled its intention to introduce CKD models of NEVs by the close of December 31, 2025.

Later, in November, the company announced intentions to acquire land worth approximately Rs1.54 billion to address future operational needs.