A memorandum of understanding has been signed by the Millat Tractors Limited with a leading Chinese electric bike manufacturer to explore the assembly, marketing and manufacturing of electric bikes in Pakistan through one of its subsidiary companies.
The Pakistan Stock Exchange received a notice and in it the company said that the agreement was signed by a subsidiary of Millat tractors. This is a part of the group’s strategy to diversify into the electric mobility sector.
According to the company the collaboration will be aligned with the government’s National Electric Vehicle Policy 2025-30.
The company also said that the initiative will also help expand the group’s portfolio. It will also support Pakistan’s transition towards sustainable transportation.
Before this development came, the Millat tractors clarified to the stock exchange that one of its group companies was evaluating the feasibility of electric bike production amid growing market speculation.
Few days later a memorandum of understanding was signed by the Millat Tractors Limited.
The electric bike market of Pakistan has recently witnessed huge growth especially due to rising petrol prices and e-bikes’ lower running costs.
These reasons have pushed consumers toward electric two-wheelers.
In April alone according to industry estimates around 40,000 electric two-wheelers, mostly scooters were sold because of the increasing demand.
Millat Tractors holds a dominant share in the country’s tractor market and is also the largest tractor manufacturers in the country.
The company has been increasingly expanding beyond traditional agricultural machinery. This includes industrial manufacturing initiatives and exports.
Interestingly with the demand rising many popular models of electric bikes are now in short supply. Some buyers have even reported that they had to pay additional expenses ranging from Rs10,000 to Rs15,000 to secure early delivery.
However even still buyers are facing long delivery timelines and they have even stretched for around 30 days.
Also read: Electric bikes in short supply as rising fuel prices push buyers to switch
