Millat Tractors Limited has signed a memorandum of understanding with a leading Chinese electric bike manufacturer to explore the assembly, manufacturing, and marketing of electric bikes in Pakistan through one of its subsidiary companies.

In a notice sent to the Pakistan Stock Exchange, the company said the agreement was signed by a subsidiary of Millat Tractors as part of the group’s broader strategy to diversify into the electric mobility sector.

The company said the proposed collaboration is aligned with the government’s National Electric Vehicle Policy 2025-30 and is expected to help expand its product portfolio while supporting Pakistan’s transition toward more sustainable transportation.

The development comes just days after Millat Tractors informed the stock exchange that one of its group companies was assessing the feasibility of electric bike production in Pakistan amid growing market speculation.

Pakistan’s electric bike market has been expanding rapidly in recent months as rising petrol prices and lower operating costs encourage consumers to shift toward electric two-wheelers. Industry estimates suggest that around 40,000 electric two-wheelers, mostly scooters, were sold in April alone as demand continued to rise.

Millat Tractors is the country’s largest tractor manufacturer and holds a dominant position in the domestic tractor market. In recent years, the company has been gradually expanding beyond traditional agricultural machinery through exports and other industrial manufacturing initiatives.