Sazgar auto manufacturing

2017 was an amazing year for the Pakistani auto industry as we witnessed the arrival of many international brands like Hyundai, KIA and the Europe automakers including Volkswagen and Renault in Pakistan.

The new auto policy 2016-21 has hooked many players to create automobiles in Pakistan and Sazgar Engineering Works, the auto rickshaw manufacturer also has its eyes on the prize.

As we have previously reported, the company was planning to manufacture cars in Pakistan and now it has made it official by sending a notification to the stock exchange on Wednesday.

Sazgar has put on hold the expansion plans for its rickshaw production capacity and has decided to spend Rs. 1.76 billion to assemble four-wheelers in its greenfield project which will be completed in June 2019.

Sazgar will set up a plant in collaboration with a Chinese firm whose name has not been disclosed yet but the two companies signed a Memorandum of Understanding last year in May.

According to the notice sent to Pakistan Stock Exchange, the new facility will have the production capacity of 24,000 units per annum.

Owing to the lack of good public transport facilities, the demand for three-wheelers and passenger cars is increasing among masses and the arrival of new blood in the industry will help to fulfill it in addition to ending the monopoly of three big names Honda, Toyota, and Suzuki in Pakistan.


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