Sazgar Engineering Works Limited has announced its plans to introduce new energy vehicles (NEVs), or electric automobiles, in the country.

In a notice to the Pakistan Stock Exchange on Monday, the company revealed that it aims to begin rolling out completely knocked down (CKD) models – vehicles that are shipped in parts and assembled at the dealership or factory – of NEVs by December 31, 2025.

Sazgar, known for manufacturing automobiles, three-wheelers, automotive parts, and household electric appliances, has announced that its board has approved a significant expansion plan with an estimated cost of Rs4.5 billion, excluding land costs. This expansion “will be financed through the company’s internal cash resources.”

The expansion plan includes upgrading the paint shop, constructing new warehousing facilities, and installing a four-megawatt solar power system. The plan encompasses the establishment of new manufacturing facilities for the local assembly of NEVs, pending approval from relevant government regulatory authorities.

In 2022, Sazgar assembled Pakistan’s first hybrid electric vehicle. The vehicle was launched under the brand name “Haval” on Nov 17 in Lahore. It was a joint venture between SEWL and Great Wall Motor of China.

The company revealed financial results for FY24, reporting a profit of Rs7.94 billion, marking a staggering 697% increase from Rs995 million in the same period last year.

The board of directors also recommended a final cash dividend of Rs12 per share, or 120%, in addition to the interim cash dividend of Rs8 per share already distributed.

Despite such strong results, the company’s share price fell sharply during Monday’s trading session, closing at Rs973.75 after a decline of Rs45.88.