Karachi, July 23, 2024 – Dewan Farooque Motors Limited (DFML) has announced significant strides in its electric vehicle (EV) manufacturing operations, propelling its share price to the upper limit on the Pakistan Stock Exchange (PSX).
The company revealed that it has successfully installed the necessary jigs for EV production at its assembly plant. The Engineering Development Board (EDB) is currently inspecting the facilities, a critical step in ensuring compliance with regulatory standards and production readiness. DFML has entered into a toll manufacturing agreement with ECO-Green Motors Limited (EGML) to produce the latter’s Honri-VE model, with production slated to commence in August 2024.
This milestone in EV production sent DFML’s share price soaring to Rs40.27, marking a 10% increase and hitting the upper limit on the PSX. The surge reflects investor confidence in DFML’s strategic move into the EV sector, which is poised for substantial growth given the global shift towards sustainable transportation solutions.
In addition to its partnership with EGML, DFML has previously secured a technology license agreement with Kia Corporation to assemble the South Korean automaker’s vehicles in Pakistan. This dual approach—partnering with both local and international firms—positions DFML to leverage diverse technological expertise and expand its product offerings in the competitive automotive market.
DFML’s foray into EV manufacturing is in alignment with the Pakistani government’s push for electric mobility. The government has been advocating for policies that promote the adoption of EVs to reduce the country’s carbon footprint and reliance on fossil fuels. Initiatives include tax incentives for EV manufacturers and buyers, as well as investments in charging infrastructure.
The Honri-VE model, set to be produced by DFML, is expected to cater to the growing domestic demand for affordable and efficient electric vehicles. With increasing environmental awareness and rising fuel prices, consumers are gradually shifting their preferences towards EVs. DFML’s entry into this market segment is timely and strategic, potentially capturing a significant share of the nascent but expanding EV market in Pakistan.
Market analysts are optimistic about DFML’s future prospects. The company’s proactive steps towards establishing EV manufacturing capabilities are seen as a forward-thinking move that aligns with global automotive trends. By tapping into the burgeoning EV market, DFML is not only enhancing its market position but also contributing to the broader goal of sustainable development.
Dewan Farooque Motors Limited’s announcement of progress in EV production has sparked a positive reaction in the market, with its share price soaring. The company’s strategic initiatives and alignment with governmental policies on electric mobility position it well for future growth and success in the evolving automotive landscape.