Electric Vehicles in Pakistan - Insights, Demand & Challenges

The term EV or electric vehicle represents an automobile that runs on electricity stored in a battery instead of a combustion engine. 

According to the Pakistan Bureau of Statistics, only 8000 electric vehicles were registered in 2022. However, the country is expected to reach 90% of EV sales by 2040.

China dominates EV manufacturing and sales. Fortunately, Chinese investors are interested in helping Pakistan manufacture and promote electric vehicles.

Pakistan’s government, as a response, has almost eliminated the customs duty on the import of charging infrastructure (0%) and EV-specific parts(1%).

Electric vehicles are environment-friendly, and they also have the potential to reduce dependence on fossil fuels. Despite all the efforts, Pakistan's EV industry faces many challenges. 

A considerable portion of Pakistan’s import bill is due to the high fuel cost. The main challenges for the EV industry in Pakistan include the following;

Lack of Awareness

People in Pakistan need to become more familiar with electric vehicles and their benefits. The government should launch awareness campaigns to educate consumers about the advantages and needs of electric cars and bikes.

Limited EV Charging Stations

As electric vehicles run on batteries, EV charging stations must be available at every fuel station. Unfortunately, there are very few EV charging stations in Pakistan. However, almost 85 locations across M-1, M-2, M-3, M-4, M-5, M-9, and N-5 are available for the development of DC-fast charging infrastructure.

Limited Manufacturing

Although the government of Pakistan has exempted custom duty on the import of EV charging infrastructure and EV parts, it only has a 1% customs duty. Still, the development of electric vehicles in Pakistan is limited. 

According to the Director of the Centre for Business and Economic Research at the Institute of Business Administration (IBA);

 “The National Electric Vehicle Policy is achievable because EVs are easier to produce, have fewer parts, and require fewer personnel on the assembly line. EVs are simpler to maintain and less expensive for buyers.”

Considering rapid urbanization, transitioning to non-polluting vehicles is the need of the hour. 

As per the statement of Engr. Asim Ayaz, Policy Manager at the Engineering Development Board of Pakistan (EDB),

“The Engineering Development Board has granted licenses to 12 companies out of 21 enterprises to manufacture and assemble EVs. The current adoption rate of EVs is 2.2% for two and three-wheelers and 0% for four-wheeler vehicles. However, a license is being granted to DICE and MG Motors to explore the market in four-wheeler modifications.”

The demand for electric vehicles in Pakistan is booming as the industry promises efficient and affordable civilian commutes. However, the scope of the EV market is still emerging in the country due to economic challenges.

Also Read: Electric Vehicle Charging Stations on Pakistani Highways and Motorways