Sazgar to venture into LCV, passenger car manufacturing

[Zibago]

Sazgar to venture into LCV, passenger car manufacturing
By Farhan Zaheer
Published: May 12, 2017
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PHOTO: REUTERS

KARACHI: Sazgar Engineering Works Limited, the makers of Sazgar CNG auto rickshaws, has decided to explore new opportunities for the manufacturing of passenger cars and light commercial vehicles (LCVs) in Pakistan.

The company 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, according to a company notice sent to the Pakistan Stock Exchange (PSX) on Thursday.

Market watch: Driven by oil and cement stocks, index settles at new high

However, the company did not mention any amount that it wanted to invest in the project. The new auto policy, announced last year, has attracted many new players to the automobile industry. Most of the new local companies have already announced big investment plans in collaboration with leading global automakers like Kia, Hyundai, etc.

In September 2016, Sazgar Engineering announced an investment of Rs330 million to expand its production capacity from 20,000 units to 30,000 units per year. The company wants to benefit from the increasing market demand for auto rickshaws and the future growth in the automobile sector.

The expansion plan was being implemented on 27 acres of land located near Raiwind, Lahore. At present, the company’s production facilities are spread over five acres.

The company posted a net profit of Rs108 million in fiscal year 2016, up 46% from Rs74 million in the previous year.

The KSE-100 index closed at 51,426, up 322 points or 0.63% on Thursday. The news of expected investment helped Sazgar Engineering’s stock to close at Rs129.35, up 5%.

Analysts say the absence or limitation of public transport facilities in big cities has provided a wider space for auto rickshaws. Over the years, compressed natural gas (CNG) auto rickshaws have gradually replaced taxis in major cities, especially in Lahore and Karachi. Sazgar makes four-stroke CNG auto rickshaw (three-wheelers) and automotive wheel rims.

Pakistan Stock Exchange: Market noisier than ever, but outlook still positive

The company also exports its products to international markets. It is capable of designing and developing moulds, tools, jigs and fixtures of all types for sheet metal components.

The company was incorporated in September 1991 as a private limited company, but later it converted into a public limited company in November 1994.

Published in The Express Tribune, May 12th, 2017.
https://tribune.com.pk/story/1407601/sazgar-venture-lcv-passenger-car-manufacturing/
This could be start of something big man Made in Pakistan cars from a rickshaw company
@PaklovesTurkiye @Musafir117 @django @Hell hound @The Sandman

 

[django]

Sazgar to venture into LCV, passenger car manufacturing
By Farhan Zaheer
Published: May 12, 2017
0SHARES
SHARE TWEET EMAIL

PHOTO: REUTERS

KARACHI: Sazgar Engineering Works Limited, the makers of Sazgar CNG auto rickshaws, has decided to explore new opportunities for the manufacturing of passenger cars and light commercial vehicles (LCVs) in Pakistan.

The company 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, according to a company notice sent to the Pakistan Stock Exchange (PSX) on Thursday.

Market watch: Driven by oil and cement stocks, index settles at new high

However, the company did not mention any amount that it wanted to invest in the project. The new auto policy, announced last year, has attracted many new players to the automobile industry. Most of the new local companies have already announced big investment plans in collaboration with leading global automakers like Kia, Hyundai, etc.

In September 2016, Sazgar Engineering announced an investment of Rs330 million to expand its production capacity from 20,000 units to 30,000 units per year. The company wants to benefit from the increasing market demand for auto rickshaws and the future growth in the automobile sector.

The expansion plan was being implemented on 27 acres of land located near Raiwind, Lahore. At present, the company’s production facilities are spread over five acres.

The company posted a net profit of Rs108 million in fiscal year 2016, up 46% from Rs74 million in the previous year.

The KSE-100 index closed at 51,426, up 322 points or 0.63% on Thursday. The news of expected investment helped Sazgar Engineering’s stock to close at Rs129.35, up 5%.

Analysts say the absence or limitation of public transport facilities in big cities has provided a wider space for auto rickshaws. Over the years, compressed natural gas (CNG) auto rickshaws have gradually replaced taxis in major cities, especially in Lahore and Karachi. Sazgar makes four-stroke CNG auto rickshaw (three-wheelers) and automotive wheel rims.

Pakistan Stock Exchange: Market noisier than ever, but outlook still positive

The company also exports its products to international markets. It is capable of designing and developing moulds, tools, jigs and fixtures of all types for sheet metal components.

The company was incorporated in September 1991 as a private limited company, but later it converted into a public limited company in November 1994.

Published in The Express Tribune, May 12th, 2017.
https://tribune.com.pk/story/1407601/sazgar-venture-lcv-passenger-car-manufacturing/
This could be start of something big man Made in Pakistan cars from a rickshaw company
@PaklovesTurkiye @Musafir117 @django @Hell hound @The Sandman

A welcome development.Kudos

 

[American Pakistani]

Very big development. I hope Pakistanis prefer Pakistani automobile.

 

[The Sandman]

This could be start of something big man Made in Pakistan cars from a rickshaw company
@PaklovesTurkiye @Musafir117 @django @Hell hound @The Sandman

This is a great news all the best to them!

 

[bananarepublic]

hope this dosent turn into another adam motors

 

[Hell hound]

This could be start of something big man Made in Pakistan cars from a rickshaw company

Insallah

 

[Zhukov]

Sazgar raazdaar or rozgaar or whatever engineerinf company. For god sake rid us of Mehran.
Give us an economic Urban Car in .5 million Rs anyone.

 

[Icarus]

hope this dosent turn into another adam motors

Adam Motors had a lot of potential, what they needed was some time and patronage. Even the Indian automotive sector was not set up in a day. For much of our history, we were laughing at them for driving around their ministers and VIPs in those eyesore Ambassadors whilst our own buzzed around in Mercedes and Audis. What we did not see then was that they were actually strengthening the roots of their domestic automotive sector which is why today they have a thriving market while I am the third generation in my family to have bought a "New" Mehran. The only difference between those that my dada, abba and myself owned were the lights and that's all.

 

[The Sandman]

The only difference between those that my dada, abba and myself owned were the lights and that's all.

That's not fair they changed the front grill too

 

[Icarus]

That's not fair they changed the front grill too

Woh bhi same thi, maine 2013 say pehlay li thi :-(

 

[bananarepublic]

Adam Motors had a lot of potential, what they needed was some time and patronage. Even the Indian automotive sector was not set up in a day. For much of our history, we were laughing at them for driving around their ministers and VIPs in those eyesore Ambassadors whilst our own buzzed around in Mercedes and Audis. What we did not see then was that they were actually strengthening the roots of their domestic automotive sector which is why today they have a thriving market while I am the third generation in my family to have bought a "New" Mehran. The only difference between those that my dada, abba and myself owned were the lights and that's all.

Well this time the government should support such initiatives rather than giving empty assurances like last time..

Well recently I did see one of the Adam motors jeep like vehicle with a government number plate which makes me wonder if it was not the government bit the companies business strategy.....

 

[ziaulislam]

Adam Motors had a lot of potential, what they needed was some time and patronage. Even the Indian automotive sector was not set up in a day. For much of our history, we were laughing at them for driving around their ministers and VIPs in those eyesore Ambassadors whilst our own buzzed around in Mercedes and Audis. What we did not see then was that they were actually strengthening the roots of their domestic automotive sector which is why today they have a thriving market while I am the third generation in my family to have bought a "New" Mehran. The only difference between those that my dada, abba and myself owned were the lights and that's all.

pakistani companies cannot survive if foreign companies are preferred, in every govt taxi scheme, army vechiles or govt vehicle foreign companies were preferred, so many companies grew but died in its infancy. secondary no incentives were given to new companies, infact they were taxed more heavily, lastly local steel industry was destroyed due to lack of investment and privitization of pakistan steel milss

 

[Icarus]

Well this time the government should support such initiatives rather than giving empty assurances like last time..

Well recently I did see one of the Adam motors jeep like vehicle with a government number plate which makes me wonder if it was not the government bit the companies business strategy.....

That might be an exception, because as far as I am aware, not a single government contract was awarded to Adam. Public interest was also low due to our national fixation with "resale value".

pakistani companies cannot survive if foreign companies are preferred, in every govt taxi scheme, army vechiles or govt vehicle foreign companies were preferred, so many companies grew but died in its infancy. secondary no incentives were given to new companies, infact they were taxed more heavily, lastly local steel industry was destroyed due to lack of investment and privitization of pakistan steel milss

Spot on.

The government needs to incentivize setting up domestic industry. If the govt had used Adam Revo for Taxi scheme rather than Mehran, the company would have been able to sustain for much longer and perhaps even become viable. However, these vehicular acquisitions are tenders worth billions of rupees and there's a lot of money changing hands, I am sure Adam could never have been able to grease more palms than Suzuki.

 

[CSPK]

while it remains true that Adam Motors didn't get the support from the government they deserved. But lets not blame public as people did bought the car in good numbers but there was ABSOLUTELY NO AFTER SALES SERVICE by Adam which was poor on company's part. Basic spare parts were not even available at dealerships.

Secondly the build quality was horrible. I remember when we visited the showroom near New Town Karachi, the car on display had several quality issues such as misaligned bonnet, improper headlight fixing, doors didn't close in first 3 attempts, interior was lousy and uneven gaps between joints. Not to mention the design which itself wasn't appealing, still many people bought the car and are still using it.

 

[Max Pain]

Lets hope this attempt does not become another Adam,

This seems like the 2nd attempt after Adam for something actually domestic,

I expect things to be better this time because slowly the people are more aware than the 2003 era of Adam, Even at that time, Kia and Hyundai had other lucrative options apart from the Big 3 but right now its the most ripe situation since now even KIA and Hyundai are out of picture, if people do support them and Saazgar do some homework, I believe they might actually be viable and may not face the same fate as ADAM