Dewan Farooque Motors Limited (DFML) has locally assembled more than 100 units of a Chinese electric vehicle (EV) named ‘Honri-VE’ in the first three months since the company commenced production of EVs at its assembly plant.
In a notification to the Pakistan Stock Exchange (PSX), the company informed that the first 100 units had been handed over to the Eco-Green Motors Limited for onward deliveries to its customers.
While talking to Business Recorder, DFML Director & Company Secretary Muhammad Hanif German said one can compare ‘Honri-VE’ with Japan’s Suzuki Motor brands like Wagon R, Cultus and Mehran.
“It would be better to compare Honri-VE with Wagon R in terms of interior….(seating) capacity,” Hanif German said. “Our cars have already hit the roads.”
The firm has introduced two variants of the Chinese electric car including Honri-VE 0.2 and Honri-VE 0.3. The company claim they can move 200km and 300km in a single full charge and are priced at Rs3.99 million and Rs4.99 million, respectively.
DFML shares progress on EV manufacturing, share price hits upper limit
Following the announcement, DFML’s share price jumped 5.17% (or Rs2.10) to close at Rs42.74 with 8.2 million shares turnover at the PSX in the day.
The company secretary stood optimistic about the future of car manufacturing industry in Pakistan, adding the passenger car sales was on a “fast recovery since car manufacturers and assemblers cut down unit prices in the recent past”.
“The demand for electric vehicle is sharply surging compared to oil-based engines in Pakistan.”
Hanif German said car dealers have seen a surge in demand as buying a new car on bank financing has “again become feasible” since the central bank cut its key policy rate by a cumulative 700 basis points in the past five-months to 15% at present compared to record high at 22% in June 2024.
“Many banks are offering car financing at a fixed interest rate ranging between 12-14%.”
Arif Habib Limited reported earlier this week “auto financing rose by 3.7% month-on-month, reaching Rs236 billion in October compared to Rs228 billion in September 2024.”
DFML said in September 2024 that it commenced production of the electric vehicle at its assembly plant after receiving approval from the Engineering Development Board (EDB).
Back in June, the company said it entered into a toll manufacturing agreement with the ECO-Green Motors Limited (EGML) for manufacturing EGML’s Honri-VE.
Under the toll manufacturing agreement between two companies, one owns a design or idea for a product and supplies materials to the other to manufacture the product or parts of it.
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.
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