Sazgar bets Rs37bn on Pakistan's auto future

March 30, 2026 (MLN): Sazgar Engineering Works Limited (PSX: SAZEW), one of Pakistan's leading automotive assemblers, unveiled a sweeping leadership overhaul.

The company also informed an ambitious capital deployment plan that pledged tens of billions of rupees toward new manufacturing capacity as the country's vehicle market shows signs of recovery.

The Lahore-based company disclosed the appointments and investment decisions in a regulatory filing submitted to the Pakistan Stock Exchange, citing its board meeting held on the same day.

At the center of the announcement is a familiar name. Mrs. Saira Asad Hameed has been appointed Chairperson of the company for a three-year term, while Mr. Mian Asad Hameedm, her husband, has simultaneously been named Chief Executive, also for three years.

The move consolidated control of one of Pakistan's prominent three-wheeler and car manufacturers firmly within a single family at the apex of its governance structure.

Under the terms of his appointment, Mian Asad Hameed will draw a net-of-tax monthly managerial remuneration of Rs5.80 million, subject to a 15% annual increase or such higher amount as the board may decide, along with perquisites including a company-maintained vehicle for personal and official use and reimbursement of medical expenses for himself and his spouse.

Below the chief executive, the board has appointed two executive directors to steer its two core business verticals.

Mr Saeed Iqbal Khan takes on the role of Chief Operating Officer for the Three Wheelers and Automotive Parts Division, commanding a monthly net-of-tax remuneration of Rs3.00 million, rising by 15% annually.

His mandate covers a segment that has historically been Sazgar's bread-and-butter, a market where the company assembled Chinese-origin three-wheelers before pivoting aggressively into passenger cars.

The Car Division, which represents the company's higher-growth ambition, goes to Mr Mian Muhammad Ali Hameed, who has been appointed COO – Car Division for a three-year term at Rs1.60 million per month net of tax.

The appointment of yet another member of the Hameed family at an executive director level further entrenches the founding family's operational grip across both business lines.

The company also disclosed a multi-pronged capital allocation strategy totalling more than Rs37 billion, spread across factory expansion, paint shop infrastructure, and land acquisition.

The company said it has completed what it describes as its "existing expansion plan" for four-wheelers, which included construction of a new assembly line, installation of a 5.7-megawatt solar system, and the building of new warehousing facilities, all at a cost of Rs6.50 billion.

An additional Rs5 billion previously earmarked for paint shop development has been folded into a new, larger paint shop initiative described separately.

The board has approved a revised expansion plan to this effect.

The commercial milestone from this phase is immediate: Sazgar says the first rollout of the CKD model of its TANK-500 Hi4-T 4X4 2.0L Turbo AT PHEV and HEV is expected by the end of March 2026, with trial operations underway.

The TANK-500, a rugged plug-in hybrid and hybrid electric SUV assembled in partnership with GWM's Tank brand, is positioned at the upper end of Pakistan's fledgling four-wheel-drive market.

The most capital-intensive disclosure is a board-approved budget of Rs22bn, excluding the cost of land, for the construction of a brand-new, fully automatic, complete paint shop facility. The plan includes associated civil work and installation of ancillary equipment.

The company intends to finance the expansion through a combination of internal cash generation and bank borrowings.

Upon completion, total installed production and assembly capacity at its Four-Wheelers Plant will rise to 54,000 units per annum on a single-shift basis.

To support future growth, the board has approved a Rs4bn budget for the acquisition of approximately 900 Kanals of land near its existing car plant, intended to meet long-term expansion requirements.

The purchase remains subject to price negotiations with multiple vendors.

Separately, the company plans to acquire a 5-Kanal commercial plot at Pine Avenue, Lahore, for approximately Rs1.10 billion to build a company-owned showroom, after-sales service facility, and commercial offices. 

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