Here’s When Pakistan’s First Locally Assembled EV Is Due

After PM Imran Khan inaugurated the country’s first locally assembled electric bike, the news people are desperately waiting for is the kick-off of locally assembled EVs. However, assembling EVs is way more difficult than assembling electric bikes. This is why an EV is only sold as a used car in Pakistan.

While the Pakistani consumer is showing the required eagerness for EVs, the ones present in the market are too expensive for the average buyer.

Currently, EVs in Pakistan are far and between, but hybrids are abundant. Hybrid cars can be found as used cars for sale in Pakistan but they are quite expensive when compared to ICE-powered vehicles. If they continue to be sold at such a price range, Pakistan will never be able to reduce its transport emissions. Moreover, after the historic Paris climate accord in 2015, the trend is shifting towards EVs to curb emissions but Pakistan is far behind.

This is why the federal government has decided to incentivize the market so that Pakistan can meet international standards as well. This was evident from the current administration’s Automotive Industry Development and Export Plan (AIDEP) 2021-2026 where huge incentives were given to EV buyers and importers.

The reduction in custom and withholding tax has led to a tad bit of increase in EVs but finding one as a used car in Pakistan is still very difficult. Also, electric charging stations will be provided subsidized electricity rates to make them available country-wide.

Moreover, PM Imran Khan had established his reputation as a nature lover and with his billion tree tsunami, he received appreciation on every platform. While later the goal has increased to 10 billion trees, the cricketer turned politician is now trying to expand his efforts into other fields as well.

The news of locally assembled vehicles was made public by the Minister for Energy Hammad Azhar on 29th July 2021. He did so while addressing a joint meeting between National Energy Efficiency and Conservation Authority (NEECA) and the UNDP. He also put forth a major challenge which is the need to upgrade the power distribution network to the electric charging stations.

Another breakthrough in this sector observed was the partnership between Pakistan’s Zi Solar Pvt Ltd and Aeonus Co Ltd. The former is of the main players in Pakistan’s renewable energy solution provider while the latter is a reputable brand in the EV charging infrastructure company. Their collaboration could significantly boost the installation of electric charging stations.

The provision of reliable electricity to charging stations needs to be ensured before EVs become common. With the help of government support, private companies have started the installation of charging stations. The Minister opined that EVs will reduce the demand for oil and help curb pollution in the cities.

Previously, Malik Amin Aslam, the Special Assistant to the Prime Minister (SAPM) on Climate Change, had predicted a huge influx of EVs into the Pakistani market. He further stated that EVs were essential for materializing eco-tourism.

The idea of eco-tourism has been emphasized by the Prime Minister as well. With millions of Pakistanis visiting the northern areas, it has been observed that a lot of pollution is caused which can damage the country’s picturesque region. With rising temperatures, it is feared that glacial meltdown and landslides will increase. The transport sector is estimated to cause 40% of the total pollution.

To help reduce pollution in the northern region, the SAPM Malik Amin Aslam inaugurated the first e-taxi service launched as a joint venture between Saphire and Faisal Movers. This initiative has received wide acclamation, especially from Gilgit Baltistan’s Chief Minister Khalid Khursheed Khan.

The SAPM also stated that the e-taxi would save Rs 12,000 for the driver and a fully charged battery would last as long as 250 KM. The car being used here is manufactured by Build Your Dreams (BYD) EV which is China’s largest EV manufacturer.

China is a world leader when it comes to the EV industry and BYD is already being considered a tough rival of Tesla. BYD has been offered to set up their manufacturing or assembling plant in Pakistan.

Lastly, Karachi, which is Pakistan’s biggest city and the most polluted as well, acquired electric buses last month for public transport. This will also help reduce emissions and further help the EV industry grow.

Now the only missing piece in the puzzle is a locally EV assembling and manufacturing industry. Once that happens, electric car prices are expected to fall significantly, thereby increasing their share in the total car market of Pakistan. Once a few EV makers start local assembling such that consumers can find them as used cars for sale in Pakistan, the market will become interesting.