Dewan Farooque Motors Limited has commenced the manufacturing and assembly of electric vehicles with a driving range of 300 kilometers, under its ongoing toll manufacturing agreement with ECO-Green Motors Limited (EGML).
The announcement was made in a disclosure to the Pakistan Stock Exchange (PSX) on Thursday in accordance with Section 96 of the Securities Act, 2015 and clause 5.6.1(a) of PSX regulations.
“By the grace of Almighty Allah, we are pleased to inform you that Dewan Farooque Motors has now commenced the manufacturing and assembly of 300 KM range EVs for Eco-Green Motors Limited,” the company stated in its filing.
This development follows the company’s previous communication dated May 30, 2024, in which it had disclosed its plans to begin production of electric vehicles with a 200 KM range.
The newly introduced 300 KM range marks a significant step forward in the company’s commitment to supporting the growth of electric mobility in Pakistan.
This milestone further strengthens Dewan Farooque Motors’ position in the emerging electric vehicle market and reinforces its strategic partnership with EGML.
On July 8, Dewan Farooque Motors announced the successful assembly of over 300 units of its electric vehicle model, ‘Honri – VE’, as part of its toll manufacturing agreement with Eco-Green Motors Limited.
Dewan Farooque Motors, part of the Yousuf Dewan Group, was established in 1998 and entered into contracts with Hyundai and KIA to assemble, manufacture, and sell their vehicles in Pakistan. Initially successful, the company’s sales grew from Rs 5.5 billion in 2003 to Rs 10.6 billion in 2006, and it provided substantial dividends to shareholders.
However, the company’s fortunes changed in 2008, experiencing significant losses that culminated in shutting down production in 2010. By 2009 and 2010, Dewan Farooque had a negative break-up value per share, indicating severe financial distress, with liabilities far exceeding assets. Creditors initiated litigation to recover over Rs 7 billion, and the company’s financial woes prevented it from sustaining working capital or covering loan markups.
Despite attempts to restart production in 2014 and 2018, the company continued to incur losses. By 2022, net sales had plummeted to Rs 144,000 from a peak of Rs 9 billion. By the end of the 2023 financial year, the break-up value per share had further deteriorated to Rs -24.3, with shareholders’ equity at Rs -3.2 billion.
Additionally, loans to associated companies became unrecoverable as they also faced losses, further devaluing Dewan Farooque’s assets.
Last year, Dewan Farooque Motors entered into a toll manufacturing agreement with ECO-Green Motors Limited for manufacturing EGML’s Horn-EV (200KM and 300KM range).
