Dewan Farooque Motors Limited (DFML) informed stakeholders regarding the progress made at its assembly plant for the manufacturing of Electric Vehicles (EVs), a development that propelled its share price to the upper limit, stock exchange data showed.

“We would like to inform you that the Jigs required for manufacturing of Electric Vehicles have been installed and physical verification of manufacturing facilities of EGML at company’s assembly plant is being conducted by the technical team of Engineering Development Board’s (EDB),” DFML said in its notice to the Pakistan Stock Exchange (PSX) on Tuesday.

It is pertinent to mention that Jigs are tools that hold a cutting tool in place or guide it as it performs a repetitive task like drilling or tapping holes.

Following the development, DFML’s share price jumped to Rs40.27, hitting its upper limit after a maximum allowed gain of 10%.

Last month, DFML had entered into a toll manufacturing agreement with ECO-Green Motors Limited (EGML) for manufacturing EGML’s Honri-VE.

The production of the vehicle is 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.

A toll manufacturing agreement is between two companies, under which one company owns a design or idea for a product and supplies materials to the other to manufacture the product or parts of it.

“The production thereof is expected to commence in the month of August 2024,” read the notice.

Incorporated in Pakistan as a public limited company in 1998, Dewan Farooque Motors Limited is engaged in assembling, progressive manufacturing, and sale of vehicles in Pakistan.

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.