Millat Industrial Products Limited (MIPL), a subsidiary of Millat Tractors Limited (MTL), has signed an agreement for cooperation with China Xiao Dao (XDAO) to promote electric mobility in Pakistan. According to Sikander Mustafa Khan, Chairman of Millat Group of Industries, the agreement includes technology transfer, particularly in lithium iron phosphate (LFP) battery technology, and the localization of major components and parts of electric motorcycles. The agreement therefore covers two areas that are important for the production of electric two wheelers in the country, which are the battery, as the central component of an electric motorcycle, and the parts that are needed to build the vehicle itself.
The initiative is in line with the electrification policy of the Prime Minister of Pakistan, and it is expected to help reduce the import bill of the country. The company said this would happen by promoting local manufacturing, reducing reliance on imported components and conserving valuable foreign exchange. Producing parts for electric motorcycles inside the country means that fewer finished components need to be brought in from abroad, which is the link between the agreement and the aim of saving foreign exchange, and the transfer of battery technology is a part of the same effort because the battery is among the most important components of an electric vehicle.
As part of the agreement, Millat plans to accelerate the localization of electric motorcycles and subsequently export localized products to international markets. The company said this would contribute to the industrial development and export growth of Pakistan. The plan therefore has two stages, with localization first, and exports of the products that are made locally to follow. The Engineering Development Board (EDB) has been of great assistance throughout the process, providing valuable support and facilitation in advancing the project, according to the company, which has acknowledged the role of the board in moving the cooperation with XDAO forward.
Through this collaboration, Millat aims to combine international technology with the manufacturing capabilities of Pakistan to build a sustainable electric mobility ecosystem. The company also said that the collaboration will improve the engineering and automotive industry of the country. By bringing technology from a Chinese partner and joining it with local manufacturing, MIPL intends to build a base for electric motorcycle production in Pakistan, with the transfer of LFP battery technology and the localization of major components and parts as the main elements of the agreement with XDAO.
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