The auto industry of Pakistan is going through some interesting times and finally after much anticipation, Sazgar Engineering Works, the auto rickshaw manufacturer has been awarded the final go-ahead to set up an assembly plant in the country.
According to a notice to the Pakistan Stock Exchange (PSX) on Wednesday, the company has received Category-A, Greenfield Investment status by Ministry of Industries & Production of Pakistan.
In January this year, the company informed that it intends to set up a plant to manufacture light commercial vehicles (LVCs) and plans to roll out models in 18 months time period.
The company has put on hold the expansion plans for its rickshaw production capacity to achieve the set target. As we reported earlier, the manufacturing facility will have the production capacity of 24000 units and the company will spend Rs. 1.76 billion to manufacture the car assembly in Pakistan.
Sazgar signed a Memorandum of Understanding (MoU) last year in May with a Chinese company to manufacture vehicles, whose name was kept under close wraps for quite too long. The recently issued notice to PSX reveals that the cars “will be assembled and manufactured under the brand name BAIC.”
The manufacturing facility is expected to begin formal operations by June 30, 2019. Sazgar along with its Chinese partner will manufacture, assemble, sell and offer after sale services of different vehicles in Pakistan.