The Sazgar Engineering Works—the auto-rickshaw manufacturers, has been permitted to establish their new car manufacturing plant in Pakistan in collaboration with a Chinese firm, as per a notice given to the Pakistan Stock Exchange (PSX) on Wednesday.
Arshad Mahmood—the Secretary of the Sazgar Engineering Works Company in the notice said that the Ministry of Industries and Production of Pakistan has awarded the Category-A, Greenfield Investment status to the firm. He added that the automobile would be assembled and made under the brand name “BAIC”.
On Wednesday the Sazgar’s share price has risen 4.79 percent or Rupees 10.57 to close at Rupees 231.37 with five lacs eleven thousand and five hundred shares altering hands at the Pakistan Stock Exchange.
Back in January, the Sazgar Engineering Works made an announcement to establish the light commercial vehicles’ (LVCs) plant on a quick track basis and to roll-out the models in maximum eighteen months for tapping the potential growth in the auto industry in Pakistan. For acquiring the target, it temporarily placed a halt to its expansion plan for the three-wheelers.
Arshad Mahmood in a prior notice to the PSX said that keeping in mind the potential growth and the future projections of the automobile industry in Pakistan and for facilitating the on-time completion of the project, the board has taken the decision to hold the expansion of the auto rickshaws production facilities as per the earlier made commitment.
He added that the car and LCVs project would be reaching completion by 30th June 2019. The plant would be provided with the production capacity of twenty-four thousand units per annum.
The board of directors has approved the approximated project cost of Rs 1.76 billion. This amount already excludes the cost of land owned by the firm. The four-wheelers plant is being set up in partnership with the Chinese company. The name of the Chinese firm has not been revealed since the start of this venture. A memorandum of understanding between the two partners was signed back in May 2017.
The partners would be making, assembling, selling and would be offering sale services for the vehicles used for passengers and the off-road vehicles like jeeps.
Previously, Sazgar Engineering in the mid of 2017 started exporting the three-wheeler rickshaws of Pakistan to Japan. This decision was an astonishing one as Japan is pretty strong in its automobile sector.