Dewan Farooque Motors Limited (DFML) said on Tuesday that it has commenced production of electric vehicle (EVs) at its assembly plant after receiving approval from the Engineering Development Board (EDB).
The listed company shared the development in its notice to the Pakistan Stock Exchange (PSX) on Tuesday.
“In continuation of our earlier letter dated July 23, 2024 regarding the physical verification of manufacturing facilities of Eco-Green Motors Limited (EGML) at the company’s assembly plant by the Engineering Development Board’s (EDB), the approval of which has been received and accordingly the production of electric vehicles has now been started at our assembly plant under the toll manufacturing agreement with our associated company EGML,” read the notice.
Following the development, DFML’s share price jumped to Rs52.3, a gain of Re0.91 or 1.8% at the time of this report.
Incorporated in Pakistan on December 28, 1998 as a public limited company, DFML is engaged in assembling, progressive manufacturing and sale of vehicles in Pakistan.
Back in June, DFML said it entered into a toll manufacturing agreement with ECO-Green Motors Limited (EGML) for manufacturing EGML’s Honri-VE.
The production of the vehicle was expected to commence in August, DFML shared in its notice back then.
“By the grace of Almighty Allah, we hereby announce that DFML has entered into a toll manufacturing agreement with ECO-Green Motors Limited (EGML) for manufacturing of EGML’s Honri-VE (200km and 300km range), thereby becoming the leading manufacturer of electric vehicles in Pakistan,” read the notice.
Under the toll manufacturing agreement between two companies, one company owns a design or idea for a product and supplies materials to the other to manufacture the product or parts of it.
In 2022, DFML said it entered into a Technology License Agreement (TLA) with Korea’s KIA Corporation to produce and assemble its vehicles in Pakistan.
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