Runner Automobiles has signed an agreement with Chinese company BYD to set up a plant for manufacturing electric vehicles (EVs).
Under the technical license agreement (TLA) signed with BYD last week, the company will receive the technical details required to design an EV manufacturing plant in Bangladesh.
Sanat Datta, chief financial officer (CFO) of Runner Automobiles, said a series of agreements were required to start manufacturing EVs.
In March last year, Runner signed a Master Supply and Manufacturing Agreement (MSMA) with BYD to establish a strategic alignment, and the company’s board approved the agreement on Thursday.
In the second phase, Runner needed to sign the TLA with BYD as part of its initiative to set up the manufacturing plant.
“Upon completion of the plant, Runner Automobiles will manufacture EVs in accordance with the Bangladesh Manufacturing Act,” said Mr Datta.
In response to a question, he said it would take time before details would be available about the investment size and the exact timeline for commencing operations at the plant.
Price-sensitive Information (PSI) regarding the agreement with BYD was uploaded on the website of the Dhaka Stock Exchange (DSE).
Meanwhile, Runner Automobiles has opened a letter of credit (L/C) to import BYD vehicles in completely built-up (CBU) condition.
“Imports are likely to begin in October,” said Mr Datta.
BYD vehicles are already available in the local market, as a sister concern of Runner Automobiles has been importing them.
The latest disclosure regarding the agreement with BYD appeared to have made a positive impact on the stock price.
While the overall market was in the red on Sunday, Runner Automobiles was among the few stocks that advanced. It gained 1.53 per cent to close at Tk 53 per share.
Prior to this, the company experienced a 25 per cent surge in its stock price, closing at Tk 52.50 on Wednesday, up from Tk 42 on July 23.
