Electric vehicle industry in Pakistan

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Dynasty IT EV by Karakoram Motors.

Pakistan already has a significant market for hybrid vehicles with Honda's Vezel, Toyota's Prius and Aqua, and other models seen on the roads. The Automotive Development Policy (2016–2021) and the launch of China-Pakistan Economic Corridor (CPEC) are encouraging foreign investments for the new automobile brands to enter Pakistani market, while the leading manufacturers in the automobile industry in Pakistan are interested in introducing EV models with a wide range of prices which target consumers of diverse income groups.[1] Several members of the international automobile industry including South Korea, China, and Japan also believe that Pakistan has a high potential market for EV technology, and local businesses are collaborating with them to bring EVs in Pakistan.[2]

Electric vehicle manufacturers in Pakistan[]

Electric car manufacturers[]

Dynasty IT was bought by Karakoram Motors of Pakistan, and now it is manufactured in Pakistan.[3]

Karakoram Motors is a Pakistani automobile manufacturer based in Karachi, Sindh, Pakistan. Karakoram Motors is the authorized assembler and manufacturer of Dynasty IT electric cars.[4]

Rahmat Group is bringing electric cars to Pakistan. As per Dawn News, the Group has already acquired 25 acres of land to establish Electrical Complex at Nooriabad. At the initial stage, the group will produce electric buses to tap the transport market, and in the second phase, a manufacturing plant would be established at the complex to produce electric cars and two-wheelers. As per the reports, Rahmat Group will partner with two Chinese manufacturers to turn its plans into a reality. One company will handle the electric car production while the other will assemble electric vans and trucks. The group also plans to develop lithium batteries for buses, cars and two-wheelers.[5] Rahmat Group has signed an agreement with Chinese EVs manufacturer BYD. [6]

Chongqing Changan Automobile Limited has signed an agreement with Master Motors of Pakistan to assemble and sell their cars in the country. Jinbei has collaborated with Zenith Automotive (Pvt) Ltd. to distribute and sell its Electric vehicles across the country.[7]

Al Haj Automotive Private Limited recently signed an agreement with Proton as the exclusive authorised distributor and assemblers of Proton vehicles in Pakistan and have plans to launch their Electric vehicles in the country. The agreement signing ceremony was held in Kuala Lumpur. [8]

BMW has introduced their top of the line electric cars, the i3 and the i8 in Pakistan. Nissan, Hyundai, Audi and Renault are already in talks with the Ministry of Industries and Production for producing locally manufactured electric cars in the country.[2] Audi has launched its e-Tron 50 Quattro in Pakistan in April 2020.[9]

Economia Solar vehicles

Economia is a Pakistani-based company that specializes in the manufacturing of Solar vehicles. They mainly manufacture solar powered bikes, Rickshaws, Golf Carts, Vans, Cars and Central Air Conditioning units.[10]

Pakistan in collaboration with China has introduced its first-ever electric car company, Topsun Motors, which inaugurated its showroom in Jail Road of Lahore on 3 January 2020.[11]

Dice Foundation has recently signed an agreement with to develop EVs. Chairperson Dice Foundation Khurshid Qureshi said that he chose TEVTA over several other organizations because he thinks that the skilled workforce of TEVTA can play its role in the development of electric vehicles. The agreement signing ceremony was held in Lahore.[12]

MG JW Automobile is a joint venture between JW-SEZ Group and SAIC motors.In May 2020, JW Auto Park had signed a MoU with Morris Garages regarding manufacturing/assembling of their electric cars in Pakistan. Currently, vehicle tests are being conducted on Pakistani roads with CBU Unit.[13] The company has also plans to launch Wuling Hongguang Mini EV in the Pakistani market.[14]

Hybrid cars[]

Pakistan already has a significant market for hybrid vehicles with Honda's Vezel and Freed, Toyota's Prius and Aqua. However, these cars aren't being locally manufactured in Pakistan, but are directly imported from Japan.

In May 2019, An all-new Suzuki Swift was rumoured, presumably doing test rounds on the roads of Pakistan. The car was rumoured to be registered under Pak Suzuki’s name. The most important bit of information about this Swift was its hidden emblem presumably "Hybrid". Pak Suzuki, according to images, had hidden the emblem with tape on it. If the rumors are to be believed then this CBU Swift Hybrid could be available in Pakistan by the end of 2020. However, it cannot be conclusively said whether Pak Suzuki will launch the vehicle in the local market, as the company has not made any official statement in this regard. The spotted one was fourth generation Swift.[15]

Electric buses[]

On 26 August 2020, An agreement was signed between China’s Skywell Automobile and Pakistan's Daewoo Express to introduce electric buses in Pakistan. According to deal, Skywell Automobiles will provide its electric buses for the Pakistan market in Phase-1, and in Phase 2, shall set up a manufacturing plant for producing electric vehicles in Pakistan.[16][17]

Scooters, Motorcycles and Auto Rickshaws[]

On 2017, had created the first locally manufactured electric motorcycle. The company is based just outside of Bahria Town Rawalpindi, and showcased three Jolta Chargeable Electrical Motorcycles in Gwadar.[18] Jolta also develops electric bike kits that can be retrofitted to any Chinese and Japanese bikes being assembled in Pakistan. Jolta is a subsidiary of Auj Technologies, a company based in Lahore.

Leading automobile manufacturers, including Super Power Motorcycles have started introducing EV models. Neon, a Pakistan-based motorcycle assembler, has introduced an all-electric Neon M3 motorbike in Pakistan. The macho looking sports bike comes with emission-free and noiseless features.[19]

Economia is a Pakistani-based company that specializes in the manufacturing of Solar vehicles. They also manufacture solar-powered bikes and Rickshaws.[10]

Sunra, a Chinese electric bike manufacturer, also has presence in Pakistan.[20]

On 31 August 2019, Federal Minister for Science and Technology visited Pakistan Council of Renewable Energy Technologies in Islamabad where he announced to introduce eco-friendly electric motorcycles and rickshaw to save the energy and environment. The Minister of Science and Technology, had given a demonstration of e-bikes and e-rickshaws by driving them himself. He said that his ministry would roll out electric motorcycles and rickshaws across the country. He added that electric motorcycles and rickshaws are the future of the Pakistan's transportation system.[21][22]

On 9 October 2019, BBC Urdu reported that two motorbike manufacturers from Sahiwal and Lahore had launched an electric bike series by the name of "Jaguar". Auj Technologies – a Lahore-based electric motorcycle company – says they had started a joint venture with MS Group to produce the bikes. They claim that these are the nation's first both indigenously designed and manufactured electric bikes.[23][24]

On 24 January 2020, Sazgar unveiled Pakistan's first locally manufactured electric rickshaw. The unveiling ceremony was held in Sazgar car plant located at Sundar Road in Lahore.[25]

Railways[]

Pakistan Railways has 29 electric locomotives of class BCU30E numbered 7001–29. These are British-built locomotives of 3,000 horsepower for 25 kV AC. They are stored out of use because the overhead lines are unserviceable, owing to theft of copper.[26][27]

Challenges being faced[]

The industry of electric vehicles faces serious challenges in Pakistan. The major problem is the lack of awareness among common car buyers about the advantages of EVs over the combustion engine vehicles. The shortfall of electricity and lack of charging infrastructure are the major reasons why electric vehicles aren't considered by the public. Charging time required by the electric vehicles and the driving range that they offer are considered to be the negative factors that discourage the local consumers from buying EVs.[28] Also given the amount of load shedding in Pakistan because of WAPDA’s massive circular debt due to which home and electric charging stations might not receive uninterrupted supplies of electricity. It is usually questioned whether Pakistan's electricity power generation capacity will be able to cater to increased demand from electric vehicles in the future.

High cost of lithium-ion batteries due to lack of local production, regulations, and incentives for it is also hindering the adoption and assembling of good quality electric vehicles in Pakistan. [29][30]

Initiatives by Government of Pakistan[]

The Automotive Development Policy 2016–2021 and the launch of China-Pakistan Economic Corridor (CPEC) have been encouraging foreign investments for the new automobile brands to enter Pakistani market.[1]

In the budget 2018–19, The government had given exemptions of 16 per cent customs duty on charging stations of electric vehicles, reduction of customs duty from 50 per cent to 25 per cent and an exemption of 15 per cent regulatory duty (RD) on electric vehicles. The government had also reduced customs duty on kits of electric vehicles from 50 per cent to 10 per cent.[7]

Electric Vehicles Policy of Pakistan 2020-2025[]

On 5 November 2019, Pakistan's federal cabinet had approved the first-ever national Electric Vehicles (EV) policy in a bid to tackle effects of climate change and offer affordable transport. The Key Points of Electric Vehicles Policy 2020-2025 are following:[31]

  • Exemption of customs duty and additional sales tax on the import of 4 wheels electric vehicles.
  • Only 1% sales tax on locally manufactured electric vehicles ( power up to 50/kwh).
  • Also 1% sales tax on light vehicles (power up to 150/kwh).
  • Import duty on the import of batteries and charging equipment is reduced to only 1%;
  • Federal Excise Duty (FED) will not be applicable on the manufacturing or sales on EVs
  • Only 1% tax on the import of electric vehicles parts and spare parts.
  • The would-be no registration fee of electric vehicles.
  • No annual renewal fee for electric vehicles producer in the ICT sector.
  • There would be no custom duty on the import of plant and machinery.

In the first phase, the government will focus on converting 30 per cent of the total number of vehicles, mainly cars and rickshaws, into EVs by 2030. According to policy, 100,000 cars and 500,000 bikes and rickshaws will be converted to EVs in next 4 years, and more than 3,000 CNG stations that have been shut due to gas shortage will be converted to EV charging stations. Pakistan is also planning to set up special units of electric car manufacturing in the Special Economic Zones being established under the China-Pakistan Economic Corridor.[32]

In November 2019, MoU was signed between Pakistan's Minister of Science and Technology Fawad Chaudhry and CEO of Airlift to introduce battery buses for Pakistan's public transport system.[33]

On 8 July 2021, Prime Minister Imran Khan inaugurated the production of electric motorcycles in partnership with . Pakistan Electric Vehicles Policy 2020-2025 approval resulted in electric motorcycle manufacturing.[34]

Industry associations[]

  • Pakistan Electric Vehicles manufacturers Association[35]

Charging infrastructure[]

The charging infrastructure for electric vehicles in Pakistan has not been fully developed yet.

In January 2017, Dewan Motors with BMW inaugurated Pakistan's first public charging station for electric and plug-in hybrid electric vehicles in Emporium Mall, Lahore. Dewan Motors had installed another station for plug-in hybrid and electric vehicles at Dolmen Mall in Karachi in February 2017.[36][37]

BYD has also plans for setting up charging stations in Pakistan which will be done in association with the leading oil company in the country, Total Parco.[38]

The first set of EV chargers located at PSO Fuel station in Jinnah Super Markets (F7), Islamabad

In July 2020, The first charging station was set up at one of PSO stations located in Islamabad by Barqtron Energy Company. According to Federal Ministry of Energy, 24 more charging stations are being planned to be added at PSO stations across Pakistan.[39][40]

See also[]

References[]

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