Dewan Motors begins EV production in Pakistan, share price rises

WEB DESK: Dewan Farooque Motors Limited (DFML) announced on Tuesday that it has started making electric vehicles (EVs) at its assembly plant after getting approval from the Engineering Development Board (EDB).

The company shared this news in a notice to the Pakistan Stock Exchange (PSX). They said that, following an earlier letter from July 23, 2024, about the EDB checking their assembly plant, they have now received approval.

Production of EVs has begun at their plant as part of a toll manufacturing agreement with Eco-Green Motors Limited (EGML).

After the announcement, DFML’s share price went up to Rs52.3, which is an increase of Re0.91 or 1.8 per cent.

DFML, which was set up in Pakistan on December 28, 1998, is involved in assembling and selling vehicles in the country. In June, the company had mentioned entering into a toll manufacturing agreement with Eco-Green Motors Limited (EGML) to produce EGML’s Honri-VE.

Dewan Motors had expected production to start in August.

The notice said, “By the grace of Almighty Allah, we are pleased to announce that DFML has signed a toll manufacturing agreement with EGML for making EGML’s Honri-VE (200km and 300km range), making us a leading electric vehicle manufacturer in Pakistan.”

Under this agreement, one company provides the design or idea for a product and supplies materials, while the other company makes the product or its parts.

In 2022, DFML had also signed a Technology License Agreement with Korea’s KIA Corporation to produce and assemble its vehicles in Pakistan.

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