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  • Emerging EVs, investment in infrastructure and the role of local manufacturers in reducing fossil fuel reliance

The auto sector is transforming towards reduced dependency on fossil fuels, which is especially important in countries where petroleum fuel is imported. Considering Pakistan’s current energy landscape, there are challenges in introducing battery electric vehicles (BEVs), as there is heavy reliance on petroleum fuel, which hinders the immediate adoption of BEVs. Despite these challenges, 34 licences have been obtained by two to three wheeler manufacturers since 2019 whereas in the four wheeler category, following companies have announced their entry through launching of different variants.

Around 59% of Pakistan’s energy consumption comes from fossil fuels. EV solves three problems – controls pollution, oil imports and supports climate change efforts.

MCML brands

Master Changan Motors Limited (MCML) has unveiled its electric vehicle brand in Pakistan, launching the Deepal L07 sedan and Deepal S07 SUV. The vehicles are available for pre-booking with prices starting at Rs15.5 million for the L07 and Rs16.5 million for the S07. The company has also announced plans to invest $50 million in the entire EV value chain, including establishing charging infrastructure across Pakistan. The company said CKD manufacturing could begin in eight to 10 months. Both cars have a range of around 500 kilometers in a complete charge that can take up to four hours.

BYD to introduce three models

BYD is set to introduce three models in Pakistani EV market. BYD, short for Build Your Dreams, is making its debut in Pakistan as an electric vehicle (EV) automotive brand. Recognised as the world’s leading EV manufacturer in terms of sales and production, BYD’s entry into Pakistan marks a significant milestone in the country’s automotive industry.

The company, known for its wide range of products including EV buses, smartphone batteries, semiconductors, and even electric rails for city metros, is set to introduce three models as its initial offering. BYD officially announced the three vehicles that will be available in Pakistan: the Atto 3 (EV), Seal (EV), and Sealion 6 (PHEV).

The company announced that BYD along with Mega Motors Co will establish three state-of-the-art flagship stores in Karachi, Lahore, and Islamabad. They plan to set up 20 to 25 dealerships across the country within the first three years. The company will build the first state-of-the-art New Energy Vehicle (NEV) assembly plant in Karachi along with establishing electric car charging stations in major cities and along motorways and highways to alleviate range anxiety for customers. Pakistan has the potential to become an export hub for BYD vehicles as the country has the capacity to play a significant role in the global EV market.

Indus Motor brands

There are several models of EVs and hybrid electric cars in the country, but currently, only the Indus Motor Company is manufacturing a hybrid electric vehicle (HEV) — the Toyota Corolla Cross, while two new entrants are assembling hybrid vehicles. The HEV technology presents a practical and efficient solution in the current scenario, as electricity and electric chargers are not available everywhere. Possibly due to these infrastructure hurdles, mostly related to the lack of charging ports and continuous availability of electricity, the National Electric Vehicle policy introduced in November 2019 has failed to attract any single four-wheeler EV assembler in the country. The issues related to the launch of EV vehicles in the country, such as the lack of financing for customers as EVs are more expensive due to the higher cost of batteries, however, the ministry is proposing to have an EV charging station at every gas station to enhance the availability of charging options.

More players

Two local players, Haval of Sazgar Engineering Works Ltd, and Hyundai Nishat Motors, are already assembling hybrid vehicles, while the third local player is also set to enter the non-conventional vehicle market of Pakistan on a larger scale. Since they have the grace period up to June 2026 under the Greenfield option, these companies were only assembling vehicles in the country.

Apart from cars, Sazgar is a key player in manufacturing electric auto rickshaws in the country, and in late 2022, Haval introduced Pakistan’s first locally assembled hybrid electric vehicle. Later in October 2023, Hyundai Nishat introduced its hybrid car. On the other hand, MG Pakistan has decided to enter the market on a larger scale with all three categories of the new energy vehicle (NEV) class.

These include hybrid vehicles that have inbuilt charging, the other category is the plug-in charging where the vehicles operate on fossil fuel and have the option for plug-in charging too in case of fuel shortage, and the third category is the electric vehicle. MG plans to start assembling vehicles in all three NEV categories, and these will be launched in the fiscal year starting from July 2024.