Millat Tractors Limited, Pakistan’s largest tractor manufacturer, on Tuesday announced that one of its subsidiary companies has signed a memorandum of understanding (MoU) with a leading Chinese electric bike manufacturer to manufacture electric bikes in Pakistan.
“Millat Tractors Limited (MTL) is pleased to inform that a subsidiary company of Millat Tractors Limited has signed a MoU with a leading electric bikes manufacturer of China, for the assembly, manufacturing, and marketing of E-bikes in Pakistan,” read the notice to the Pakistan Stock Exchange (PSX).
“This strategic collaboration reflects the group’s commitment towards diversification into the electric mobility sector and aligns with the Government of Pakistan’s National Electric Vehicle (EV) Policy 2025-30,” it added.
The listed company shared that the MoU marks an important step toward expanding the group’s product portfolio and contributing to the country’s transition to sustainable transportation.
Last week, MTL informed that one of its group companies is evaluating the feasibility of EV bike production in Pakistan.
The development comes as demand for EV bikes continues to surge in Pakistan as petrol prices soar.
Bike dealers and experts told Business Recorder that around 40,000 units, including 90% of EV scooters and 10% of EV bikes, were sold only in April in the country, while demand was way stronger.
Millat Tractors Limited is a public limited company incorporated in Pakistan in 1964. MTL is engaged in the manufacturing and sale of internationally acclaimed tractors, diesel generating sets, prime movers, diesel engines and forklift trucks.
MTL is also involved in the sale, implementation and support of Industrial and Financial System (IFS) applications locally and abroad. As of June 30, 2024, the company has an annual capacity of 30,000 tractors per annum on a double-shift basis.