Top team shake-up: Sazgar Engineering unveils Rs22bn expansion plan

KARACHI: Sazgar Engineering Works Limited has unveiled a major expansion and leadership restructuring plan involving fresh investment of Rs22 billion to significantly enhance its vehicle production capacity and strengthen its footprint in Pakistan’s automotive sector.

The decisions were taken at a meeting of the company’s Board of Directors and were subsequently disclosed to the Pakistan Stock Exchange (PSX).

Under the new leadership structure, Saira Asad Hameed has been appointed Chairperson of the company for a three-year term, while Mian Asad Hameed will serve as Chief Executive Officer. The company also appointed Saeed Iqbal Khan as Chief Operating Officer of the three-wheelers and automotive parts division, and Mian Muhammad Ali Hameed as COO of the car division. Sazgar said it has completed its earlier Rs11.5 billion expansion plan, under which Rs6.5 billion was invested in new assembly lines, a 5.7-megawatt solar power system and warehousing facilities. The remaining Rs5 billion has been redirected to develop a more advanced paint shop facility to support higher production volumes and improved product quality.

The company also confirmed that the first rollout of its TANK-500 Hi4-T 4x4 2.0L Turbo automatic models, including plug-in hybrid electric vehicle (PHEV) and hybrid electric vehicle (HEV) variants, is expected by the end of March 2026 for trial operations.

In a further move to scale operations, the board has approved an additional Rs22 billion budget for the construction of a new fully automated paint shop and related equipment. Upon completion, the company’s installed capacity for four-wheelers is projected to increase to 54,000 units per year on a single-shift basis. To support long-term expansion, the board has also authorized Rs4 billion for the acquisition of approximately 900 kanals of land near the existing car manufacturing facility. In addition, Sazgar plans to acquire a five-kanal commercial plot on Pine Avenue in Lahore for around Rs1.1 billion to establish a company-owned showroom, after-sales service center and office complex.

The company said the expansion will be financed through a combination of internal cash generation and bank borrowings, positioning Sazgar to meet rising demand in both conventional and hybrid vehicle segments while strengthening its nationwide sales and service network.

Copyright Business Recorder, 2026