Electric vehicle: DFML enters into agreement with EGML to manufacture Honri-VE

Dewan Farooque Motors Limited (DFML) said that it has 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 to the Pakistan Stock Exchange (PSX) on Thursday.

“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.

A day ago, DFML announced that it had resumed the commercial production of the “Special Purpose KIA Commercial Vehicle” with its product name KIA Shehzore, and its roll out and launch ceremony is scheduled for June 4.

“Dewan Farooque Motors Limited has resumed the commercial production of ‘Special Purpose KIA Commercial Vehicle’ with its product name KIA ‘SHEHZORE’ and its roll-out/launch ceremony has been scheduled for June 4, 2024,” read the statement on Wednesday.

“We look forward to continue serving the people of Pakistan with high-quality products and after-sales services through our strong nationwide dealership network,” it added.

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.

The company’s share price has been moving upward for the past few weeks amid unconfirmed reports that it was launching a vehicle.

At around 2:45pm, the share price was hovering around Rs44.10, a gain of Rs2.68 during the trading session.

DFML share price has rallied massively from Rs16.43 on April 1.