Millat Tractors signs agreement with Chinese company to enter electric bike market

Millat Tractors Limited has announced that one of its subsidiary companies has signed a Memorandum of Understanding (MoU) with a Chinese electric bike manufacturer for assembly, manufacturing and marketing of electric bikes in Pakistan.

In a notice submitted to the Pakistan Stock Exchange (PSX) on May 12, the company said the agreement was signed under the Listed Companies (Code of Corporate Governance) Regulations, 2019 and PSX Regulations.

According to the disclosure, the partnership aims to expand Millat Group’s presence in Pakistan’s electric mobility sector through collaboration with what the company described as a leading Chinese electric bike manufacturer.

“Millat Tractors Limited (MTL) is pleased to inform the Exchange and its valued shareholders that a subsidiary company of Millat Tractors Limited has signed a Memorandum of Understanding (MOU) with a leading Electric Bikes (E-Bikes) manufacturer of China, for the assembly, manufacturing, and marketing of E-Bikes in Pakistan,” read the notice. 

The company stated that the initiative aligned with the Government of Pakistan’s National Electric Vehicle Policy 2025-30.

Millat Tractors said the agreement represented a step toward diversification of its product portfolio and participation in Pakistan’s transition toward electric transportation.

Last week, Millat Tractors had informed PSX that one of its group companies was evaluating the feasibility of electric motorcycle production in Pakistan following market speculation regarding its possible entry into the electric bike segment. 

The company stated that the matter was still at a preliminary stage and no final decision had been taken regarding electric bike production.

Both disclosures were also addressed to the Securities and Exchange Commission of Pakistan’s Surveillance, Supervision and Enforcement Department.

Millat Tractors is a public limited company and was incorporated in Pakistan in 1964 under the Companies Act, 1913 (now the Companies Act, 2017). The company is principally engaged in assembling and manufacturing agricultural tractors, implements, and multi-application products. The company is also involved in the sale, implementation, and support of IFS applications in Pakistan and abroad.