Expansion and Investment in Local NEV Production
Sazgar Engineering Works Ltd (SEWL) is set to intensify competition in Pakistan’s burgeoning New Energy Vehicle (NEV) market, with plans to introduce a completely knocked down (CKD) model by December 31, 2025. According to a stock filing on Monday, SEWL’s board of directors has approved the expansion of its manufacturing facilities, including the installation of a 4-megawatt solar power system, the expansion of its paint shop, and the construction of new warehousing facilities.
The project, with an estimated cost of Rs4.5 billion (excluding land), will be funded from the company’s internal cash resources. The plan is contingent on receiving the necessary approvals from relevant government regulatory authorities.
Significant Profit Growth and Dividend Announcement
SEWL posted a remarkable 697% profit increase in FY24, reporting Rs7.94 billion compared to Rs995 million in FY23. The company’s net sales also saw a significant rise, reaching Rs57.6 billion from Rs18 billion the previous year. Additionally, the board has recommended a final cash dividend of Rs12 per share, complementing an interim dividend of Rs8 per share already paid.
Rising Competition in Pakistan’s NEV Market
Sazgar’s expansion plan follows a series of developments in Pakistan’s NEV sector. Dewan Farooque Motors Ltd (DFML) recently began producing electric vehicles after receiving approval from the Engineering Development Board (EDB). Meanwhile, China’s BYD is exploring the potential for EVs in the Pakistani market. Master Changan Motors Ltd has also launched its EV models, the Deepal L07 sedan and Deepal S07 SUV, which are now available through its dealership network across 12 cities.
Source: dawn.com
