GUGO Motors signs a deal with China's Shengtang Group to explore local electric buses
The memorandum covers a proposed joint venture for buses, but the companies have named no factory, investment or start date.
GUGO Motors and China's Shengtang Group signed a memorandum of understanding on 14 October for a proposed joint venture to build electric buses in Pakistan. The stated aims are technology transfer, local manufacturing and exploring exports.
The signing took place at an event of the Pakistan China Business Forum in Islamabad marking the 77th anniversary of the People's Republic of China. About 150 government representatives, Chinese diplomats and business leaders attended.
What the memorandum leaves open
An MoU is a statement of intent, and this one omits the facts that make a plant real. The companies have not confirmed a factory, an investment commitment, a production capacity or a schedule for the first bus. GUGO already sells electric passenger cars in Pakistan and introduced the GUGO Box in 2025, so buses would be its first move into commercial vehicles. The two sides may also cooperate on lithium ion battery technology and charging infrastructure. The proposal also points to exports under a Made in Pakistan label and to a local supply chain for the sector.
Haroon Akhtar Khan, the prime minister's adviser on industries and production, was chief guest. He said cooperation between China and Pakistan should produce tangible outcomes, and stressed investment in Special Economic Zones, predictable policies and streamlined regulations. The Ministry of Industries and Production said it remains committed to turning business discussions into viable projects.
Sheikh Ejaz, co chairman of the forum's Islamabad chapter, also spoke. The Capital Development Authority, the Special Investment Facilitation Council and the Board of Investment were among the institutions represented.
A delegation on the road
A 14 member Chinese business delegation, led by Wei Linzhuo, president of the forum's Beijing office, is in Pakistan on an 11 day mission covering Islamabad, Lahore and Karachi. Chinese ambassador Jiang Zaidong said he wanted Chinese investors to engage directly with Pakistani firms.
Shengtang had already been in talks with the ministry. In a statement issued on 12 October, the ministry said a Shengtang delegation met Khan and expressed interest in signing a $10 million memorandum covering industrial development, infrastructure, tourism, electric vehicles, railways, energy and urban development. That memorandum is separate from the GUGO bus deal.
Pakistan has explored local assembly of new energy city buses before, with Master Motor and China's Yutong, but no outcome has been reported.
