VANCOUVER (CBC) - Government restrictions and the strong loonie's damping effect on sales have prompted British Columbia carmaker Dynasty Electric Car Corp. to accept a purchase offer from a Pakistani auto manufacturer.

Karakoram Motors Ltd. of Karachi has agreed to buy the design and manufacturing operations of Delta, B.C.-based Dynasty, which has been making electric cars since 2001.

Details of what the Pakistani company will pay for those assets have not been disclosed by Dynasty, which is a wholly owned subsidiary of Commercial Body Builders Ltd. Based in Delta, Commercial is a maker of specialty equipment for trucks.

Dynasty general manager Danny Epp said the main reason for the decision to sell was government regulations that prevent the electric vehicles from being operated on major highways.

As Dynasty's primary market is the U.S., the strong Canadian dollar also played a role in the decision to accept the offer from the Pakistani company, he said.

"We were only manufacturing 30 to 40 vehicles a year, and you can't make any money off that."

With six employees on the payroll and a plant in Delta, Dynasty assembles battery-powered cars made with fibre-glass bodies and other parts that are produced elsewhere.

The vehicles are priced at around $16,000.

The zero emission, low-speed vehicles are designed for urban, recreational and light commercial markets, including planned and gated communities, destination resorts, industrial complexes and universities.

It is hoped that by ramping up production to about 5,000 units annually, Karakoram will be able to generate a profit by selling the vehicles to buyers in the U.S. and Europe.

Aside from larger manufacturing facilities, the new owner is expected to benefit from lower labour costs in Pakistan and global efforts to reduce carbon emissions.

After the transaction is completed, Dynasty employees and facilities in Delta will be absorbed by Commercial Body Builders.

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