Sazgar Engineering Works, maker of CNG auto rickshaws, has decided to set up a passenger car and light commercial vehicles’ (LCVs) plant on a fast-track basis as it looks to roll out models in an 18-month time frame to tap potential growth in Pakistan’s auto sector.
To achieve the target, the company has put on hold its earlier announced expansion plan for three-wheelers, stated a notification sent to the stock exchange on Wednesday.
Company Secretary Arshad Mahmood, in the notification to the Pakistan Stock Exchange (PSX) said:
“Considering the potential growth and future prospects of the automobile sector in the country and in order to facilitate timely completion of the project; the board has decided to hold the expansion of auto rickshaws production facilities as communicated earlier. The project will be completed by June 30, 2019 while the plant would have a production capacity of 24,000 units per annum.”
The board of directors has approved the estimated cost of the project of Rs 1.76 billion. This is excluding the value of land already owned by the company. It is setting up the car plant in collaboration with a Chinese firm, the name of which has been kept undisclosed since the beginning. They developed a formal understanding and signed a memorandum of understanding in this regard in May 2017. The two partners would manufacture, assemble, sell, and offer after-sale services of passenger and off-road (like jeeps) vehicles, it said.
The company is already in the process of getting approvals from the regulatory authorities for the project and intends to set up a brand new car plant under the Greenfield Investment Category that has already been announced in the five-year Automotive Development Policy (ADP) 2016-21.
Full story: Tribune