MoU inked with Chinese co: Millat Tractors entering EV market

KARACHI: Millat Tractors Limited (MTL), one of Pakistan’s leading tractor manufacturers, has announced plans to enter the country’s emerging electric mobility sector through a strategic partnership with a Chinese electric bike manufacturer, marking a significant diversification move beyond its traditional agricultural machinery business.

In a material information disclosure submitted to the Pakistan Stock Exchange (PSX) and the Securities and Exchange Commission of Pakistan (SECP), the company said a subsidiary of Millat Tractors had signed a Memorandum of Understanding (MoU) with a leading Chinese electric bikes (E-Bikes) manufacturer for the assembly, manufacturing and marketing of electric bikes in Pakistan.

The development signals Millat Group’s formal entry into Pakistan’s fast-evolving electric vehicle (EV) market, as the country moves toward cleaner and more energy-efficient transportation under the government’s recently introduced electric vehicle policy framework.

According to the company, the collaboration is aimed at establishing local capabilities for the assembly and manufacturing of electric bikes, while also developing a nationwide marketing network to cater to growing consumer demand for affordable and environmentally sustainable transport solutions.

Analysts said the agreement is aligned with the Government of Pakistan’s National Electric Vehicle (EV) Policy 2025-30, which seeks to accelerate adoption of electric mobility, reduce reliance on imported fossil fuels, and lower carbon emissions in the transport sector.

The company noted that the memorandum marks an important milestone in expanding the group’s product portfolio beyond agricultural equipment and into new mobility technologies, positioning it to capitalize on emerging opportunities in Pakistan’s transportation market.

Industry experts say the move comes at a time when Pakistan’s two-wheeler market is witnessing increasing interest in electric alternatives due to high fuel prices, rising urban commuting costs, and growing policy incentives aimed at promoting green transportation. Electric motorcycles and scooters are increasingly being viewed as a cost-effective mobility solution, particularly for urban consumers and delivery services.

Millat Tractors Limited, a key player in Pakistan’s farm machinery industry, is widely known for manufacturing tractors and agricultural equipment, and its expansion into electric bikes marks one of the most significant strategic shifts in its business model in recent years.

Copyright Business Recorder, 2026