Regal Automobiles plans to start assembling electric vehicles in Pakistan

Regal Automobiles Industries Limited has confirmed plans to start assembling electric vehicles in Pakistan from the next year.

Regal is the only automobile manufacturer to assemble DFSK electric vehicles in Pakistan under the plant machinery plus CKD [Completely Knocked Down] supply agreement with DFSK Motor Co. Ltd., according to an official draft made public for listing at Pakistan Stock Exchange.

The company is discussing with multiple vendors for CKD cooperation agreements regarding the supply of parts for this small-sized electric car.

Regal will set up the electric vehicle assembly line in a strategic partnership with DFSK Motor Co. Ltd. The company has entered into a Memorandum of Understanding with an exclusive supplier of DFSK Motor Co. Ltd. Chongqing Sokon Motor (Group) Imp. & Exp. Co. Ltd. for importing the plant and machinery for the electric vehicle assembly.

A plot of industrial land measuring 3 acres has been allocated within the current freehold land for the project. The import of the plant will begin in December 2021, and the building construction work of the project will start in December 2021.

The project is expected to be completed by February 2023, after which it will begin commercial production.

The government has set a target to assemble 100,000 cars in the next five years, whereas the two and three-wheeler vehicles will grow to 500,000 in the same period.

The primary purpose of this policy is to reduce carbon emissions to protect the environment. On the other hand, promoting environment-friendly vehicles is expected to play a vital role in curtailing oil imports (oil is the largest import commodity in Pakistan). It will increase Pakistan’s foreign direct investment in the automobile sector, new employment opportunities and improve its overall socio-economic situation.

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