Sazgar Engineering Works Limited (SAZEW), a prominent Pakistani auto manufacturer, has announced plans to acquire land valued at approximately Rs. 1.54 billion to support its future business expansion. The company disclosed this development in a notice to the Pakistan Stock Exchange (PSX) on Thursday.

The board of directors (BoD) of Sazgar approved the purchase of nearly 140 kanals of land, located adjacent to its four-wheeler project, during a meeting held on November 14, 2024. The acquisition aims to meet the company’s future business requirements, as stated in the notice. The BoD has authorized the company’s chief executive to negotiate and finalize the terms and conditions and to complete all necessary legal formalities for the land purchase.

This strategic move comes on the heels of Sazgar’s impressive financial performance. The company reported a profit surge to Rs4.22 billion in the first quarter of FY25, marking an exponential increase of over 540% compared to Rs658 million in the same period last fiscal year. In light of these results, Sazgar also announced an interim cash dividend of Rs10 per share for the quarter.

In September, Sazgar revealed plans to introduce New Energy Vehicles (NEVs) in Pakistan, expanding its portfolio beyond traditional automobiles and three-wheelers. The company aims to roll out Completely Knocked Down (CKD) models of NEVs by December 31, 2025. To support this initiative, Sazgar’s board approved an estimated expansion cost of Rs4.5 billion, excluding the cost of land, which will be financed through the company’s internal cash resources.

NEVs are vehicles powered by alternative energy sources, offering an environmentally friendly alternative to traditional internal combustion engines that rely on fossil fuels like gasoline or diesel.