Millat Tractors Limited has announced plans to enter Pakistan’s growing electric bike market through a strategic partnership with a Chinese electric bike manufacturer, marking a major diversification move for the country’s largest tractor producer.
In a notice submitted to the Pakistan Stock Exchange (PSX) on May 12, the company said one of its subsidiary companies had signed a Memorandum of Understanding (MoU) with what it described as a leading Chinese electric bike manufacturer for the assembly, manufacturing, and marketing of electric bikes in Pakistan.
“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 said the collaboration reflected its commitment to expanding into the electric mobility sector while supporting the Government of Pakistan’s transition toward cleaner transportation under the National Electric Vehicle Policy 2025-30.
“This strategic collaboration reflects the group’s commitment towards diversification into the electric mobility sector and aligns with the Government of Pakistan’s National Electric Vehicle (EV) Policy 2025-30,” the company stated.
Expansion beyond tractors
The development signals a significant shift for Millat Tractors, which has traditionally been associated with agricultural machinery and diesel-powered equipment.
Founded in 1964, the company is principally engaged in the manufacturing and sale of tractors, diesel generating sets, prime movers, diesel engines, forklift trucks, and agricultural implements. It also provides implementation and support services for Industrial and Financial System (IFS) applications in Pakistan and abroad.
As of June 30, 2024, the company had an annual production capacity of 30,000 tractors on a double-shift basis.
Last week, Millat Tractors had informed the 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.
At the time, the company clarified that discussions remained at a preliminary stage and that 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.
Pakistan’s electric two-wheeler market gains momentum
Millat Tractors’ entry into the sector comes as Pakistan’s electric two-wheeler market experiences rapid expansion, driven by rising fuel prices, government incentives, and growing consumer demand for affordable transportation alternatives.
Industry data shows Pakistan’s electric two-wheeler segment is among the fastest-growing globally, with year-to-date sales rising 191.7% in 2026, according to Motorcycles Data.
Following strong first-quarter growth of 141.7%, April sales surged 322% year-on-year, with registrations reaching 90,416 units by the end of April, nearly matching the total volume recorded during the entire previous year.
The market’s acceleration has been fueled in part by increasing petrol prices linked to geopolitical tensions surrounding Iran, which have strengthened the economic appeal of electric mobility for consumers.
Dealers and market experts told local media that approximately 40,000 electric two-wheelers were sold in April alone, including around 90% electric scooters and 10% electric bikes, while demand continued to outpace supply in several cities.
For decades, Pakistan’s motorcycle market remained dominated by locally assembled 70cc to 150cc internal combustion engine models, with high import duties limiting foreign competition and product variety. However, recent government incentives aimed at reducing carbon emissions and encouraging electric mobility have attracted new EV manufacturers and broadened consumer options, particularly in the scooter category.
Analysts say the rapid growth positions Pakistan as a potential benchmark for EV adoption among emerging economies in Asia and the Middle East.