Brief Overview of Pakistan's Electric Vehicle Policy

[Riaz Haq]

Pakistan has a low level of motorization with just 9% of the households owning a car. Nearly half of all households own a motorcycle. Motorization rates in the country have tripled over the last decade and a half, resulting in nearly 40% of all emissions coming from vehicles. Concerns about climate change and environmental pollution have forced the government to to take a number of actions ranging from adoption of Euro6 emission standards for new vehicles with internal combustion engines (ICE) since 2015 and announcement of a national electric vehicle (EV) policy this year.

Vehicle Ownership in Pakistan. Source: PBS

EV Policy:

Pakistan electric vehicle policy 2019 sets EV adoption targets and includes incentives for buyers and manufacturers. It also focuses on development of nationwide charging infrastructure to ease adoption of electric vehicles. Here are some of the salient points of the policy:

 Policy Targets: 

1. Goal for cars: 30% of new sales by 2030 and 90% of new sales by 2040

2. Goal for 2 and 3 wheelers: 50% of new sales by 2030 and 90% of new sales by 2040

3. Goal for buses: 50% of new sales by 2030 and 90% of new sales by 2040

4. Goal for trucks: 30% of new sales by 2030 and 90% of new sales by 2040

Buyer Incentives: 

1. 1% GST for EVs vs 17% for regular vehicles

2. Lower electricity tariffs for EVs

Charging Infrastructure: 

1. Only 1% import duty on charging equipment.

2. Lower power tariffs for charging stations.

3. One fast DC charging station per 3km by 3km area in all major cities

4. DC fast chargers on all motorways every 15-30 km.

5. Ensure uninterrupted power on feeders for charging stations.

Manufacturer Incentives: 

1. All greenfield investments apply to EV manufacturers and those converting their existing facilities to manufacture EVs.

2. State Bank to offer lower rate financing for EV manufacturing.

Summary:

Announcement of National Electric Vehicle (EV) Policy 2019 by Pakistan government is a step in the right direction. It is a forward looking step needed to deal with climate concerns from growing transport sector emissions with rapidly rising vehicle ownership. It also focuses on development of nationwide charging infrastructure to ease adoption of electric vehicles.  Meanwhile it's crucial that Euro6 emission standards be seriously enforced with proper inspections to limit emissions from internal combustion engine (ICE) vehicles being sold now.

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[Riaz Haq]

As US-China trade war escalates, could Pakistan be Beijing's EV loophole? - CSMonitor.com


https://www.csmonitor.com/World/Asia-South-Central/2025/0214/China-...


Amid the ornately painted trucks bellowing smoke and the green and yellow tuk-tuks, the Chinese-made Haval Hybrid Electric Vehicle has become a ubiquitous sight on the streets of Islamabad.

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Some are looking to neighboring Pakistan, a country of 240 million which has so far welcomed Chinese automakers, to buoy sales – and possibly bypass (US) tariffs. In recent months, several Chinese automakers have either doubled down on their Pakistan projects or made their first foray into the market.

As EVs become an increasingly important geopolitical battleground, former Pakistan finance minister Miftah Ismail says that, at least in the short-term, Pakistan could serve as a sort of pressure release valve for Beijing. But he predicts the West will eventually catch up.

“The West will say that EV components have to be made in certain countries, or that 70% of the value addition has to be done in the country that exports,” he says. “It's a cat and mouse game. The West will find other ways of placing restrictions on the Chinese.

An alliance on the rocks
In October, Chinese battery giant Build Your Dreams (BYD) formally entered the Pakistani market with two electric vehicles, partnering with the country’s largest private electricity producer to facilitate the expansion. The move came after the U.S. and Canada both decided to impose a 100% tariff on Chinese electric vehicle imports, and the European Commission voted to raise its own tariffs by 35%.

Its expansion represents a boost to the business relationship between China and Pakistan at a time when both seem to be running out of friends – and when their own alliance has grown fraught.

Though China has long considered Pakistan a key part of its ambitious Belt and Road Initiative, a series of recent attacks on Chinese nationals working in Pakistan has injected the relationship with tension. After an explosion at Karachi’s Jinnah International Airport in October claimed the lives of two Chinese citizens, Chinese Ambassador Jiang Zaidong called the attacks “unacceptable.”

Still, there is a sense that neither side can afford to downgrade their relationship.

Pakistan has fraught relations with all three of its other neighbors, while China has been accused of an increasingly hostile approach towards foreign businesses, driving down foreign direct investment.

“It’s an important and close partnership, albeit one that has stumbled in recent months,” says Michael Kugelman, who directs the Wilson Center’s South Asia Institute. “In that regard, this EV plan could be not just an economic win, but also a confidence building measure.”

Economic win for who?
For China, Pakistan could be the key to tapping into the U.S. market, says Usman Qadir, senior research economist at the Pakistan Institute of Development Economics.

“If they are able to assemble their vehicles in Pakistan or a third country, then they can bypass tariffs and get into the market with their lower prices,” he says.

Pakistanis could benefit, too.

BYD and its local partner announced plans to build an assembly plant in Karachi by early 2026. They estimate that as many as half of the vehicles sold in Pakistan by 2030 will be electrified – by which time BYD hopes that its vehicles will make up a quarter of all sales.


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So far, the Chinese EVs launched in Pakistan have largely targeted the luxury market.

But whatever their long-term motive, it is clear that Chinese EV makers are having an impact; Japanese automakers, which have historically dominated the Pakistani market, have begun slashing their prices out of concern that they might lose ground.

[Riaz Haq]

Pakistan Motorcycles - Facts & Data 2025 | MotorCyclesData

https://www.motorcyclesdata.com/2025/02/01/pakistan-motorcycles/

In 2024, although a bad start of the year, then recovered in the second half, 2-wheeler sales have been 1.3 million (+18.4%) but half a million far from the record.

The just born EVs segment is fast growing, reaching 46.364 sales (+123.4%) with new local start up joined by Yadeaand other chinese manufacturers.

Looking at the performance among the top manufacturers, the leader Honda reports sales up 15.5%, ahead of United Auto (+29.3%), Suzuki (+17.3%) and Road Prince (+13%).

[Riaz Haq]

Sazgar bets on e-rickshaws for Pakistan’s EV future - Rest of World

https://restofworld.org/2025/sazgar-e-rickshaws-pakistan-ev-future/

Sazgar will set the ground for other companies in making e-rickshaws as a primary public transport choice.

By KUNWAR KHULDUNE SHAHID
12 FEBRUARY 2025 • LAHORE, PAKISTAN

Since last year, Pakistan has accelerated its shift to electric vehicles, with BYD planning to set up a production plant and the government targeting 30% EV adoption for all new vehicles by 2030.
As Pakistan’s top rickshaw maker, Sazgar pioneered e-rickshaws and hopes to make them a mainstream transport option.
Scaling up for companies like Sazgar will require stronger government policies, financial support for drivers, and political stability.

Pakistan hurtled toward its electric future in 2024. In August, Chinese EV giant BYD said it would set up its first South Asian production plant in the country. Three months later, the Pakistani government unveiled a policy that aims to transition a third of all new vehicles to electric by 2030.

Meanwhile, several local companies hastened plans to launch and produce EVs in a market flooded with importedelectric cars from international brands such as Audi, BMW, and Hyundai.

A front-runner among the local EV makers was Sazgar Engineering Works, a Lahore-based automotive manufacturer best known as Pakistan’s largest rickshaw maker.

In January 2024, Sazgar, which has made conventional rickshaws since 2005, became the first company to receive a license to produce e-rickshaws in Pakistan. The company is betting on e-rickshaws to boost mass adoption of EVs in the country. Given its legacy in the sector, Sazgar is poised to lead Pakistan’s EV revolution, automobile experts told Rest of World.

“The company has the infrastructure and resources to introduce e-rickshaws in the local market on a large scale,” said Sulman Ali, editor at PakWheels, a digital automobile publication and marketplace. “Sazgar will set the ground for other companies in making e-rickshaws as a primary public transport choice.”

Through the last decade, Sazgar has held sway over 30% of Pakistan’s rickshaw market, which currently comprises over a million rickshaws and 40 competitors. The company produces up to 2,500 rickshaws every month — most of which run on traditional fuels. It also exports its rickshaws to 30 countries including Sri Lanka, Liberia, Qatar, the U.S., and Japan, Syed Hasnain Mehdi, Sazgar’s EV project manager, told Rest of World.

[Riaz Haq]

HBL-PSL X: BYD becomes official mobility partner - Sports - Business Recorder

https://www.brecorder.com/news/40357828


KARACHI: BYD Pakistan has joined HBL-PSL X as the official mobility partner.

The partnership was dramatically unveiled when BYD’s Shark 6 vehicle carried the tournament trophy into the stadium, capturing the attention of the packed crowd.

Later in the evening, popular artist Ali Zafar heightened the excitement by boarding the BYD Shark 6 for a celebratory lap around the venue, creating a memorable moment for millions watching live.

BYD Pakistan revealed that the Player of the Tournament will receive a BYD Seal vehicle - a premium gesture highlighting the brand’s appreciation for sporting excellence.

Throughout the tournament, BYD’s innovative vehicles, including the Seal, Shark 6, and ATTO 3 models, are being prominently displayed across all four host cities: Rawalpindi, Lahore, Karachi, and Multan.

“We are thrilled to partner with HBL-PSL X for this remarkable season,” said Lei Jian, Country Head of BYD Pakistan.

“This collaboration not only strengthens BYD’s presence in Pakistan but also reiterates our commitment to leading the shift towards sustainable mobility solutions.”

Syed Haider Mujtaba, GM Marketing at Mega Motor Company, added, “Our collaboration with HBL-PSL X marks a major milestone as we continue to drive BYD’s mission of promoting innovative and sustainable transportation. We are excited to bring a new dimension to the fan experience by showcasing our futuristic vehicles.”

The partnership represents a strategic alignment between Pakistan’s premier cricket league and BYD’s vision for environmental sustainability in transportation, creating memorable experiences both on and off the cricket field as the tournament progresses through its tenth season.

[Riaz Haq]

BYD's Strategic Expansion in Pakistan and the EV Ecosystem: A Convergence of Policy, Infrastructure, and Market Potential

https://www.ainvest.com/news/byd-strategic-expansion-pakistan-ev-ec...


Market Potential: From Two-Wheelers to Four-Wheelers
Pakistan's EV market is in its infancy but growing rapidly. In the first half of 2025, electric two-wheeler sales surged by 61.5% to 38,367 units, capturing 4.6% of the total vehicle market. This growth is driven by local assembly of e-bikes and three-wheelers, supported by Chinese manufacturers like Yadea and ADM Group. BYD's entry into this segment, with its Shark 6 model, is poised to capitalize on this momentum.

The four-wheeler segment, though smaller, is equally promising. The government's goal of 2 million EVs on the road by 2030 includes a focus on commercial vehicles and public transport. BYD's partnership with DFML to assemble electric four-wheelers under a toll manufacturing agreement with ECO-Green Motors Limited is a strategic move to capture this niche. The company's global expertise in battery technology and vehicle design gives it a distinct advantage over local competitors.

For investors, the market's growth trajectory is undeniable. While current EV adoption is low (1% of new vehicle registrations), the policy-driven push, coupled with falling battery costs and rising fuel prices, creates a self-reinforcing cycle. The electrification of two-wheelers and three-wheelers, in particular, offers a scalable path to market penetration, given their dominance in Pakistan's transportation landscape.

Investment Thesis: A High-Conviction Bet on Emerging Markets
BYD's expansion in Pakistan is more than a regional play—it's a test case for its global strategy to bypass tariffs and establish production hubs in high-growth markets. The company's ability to navigate regulatory environments, build infrastructure, and align with government priorities positions it as a leader in the emerging EV race. For investors, the key metrics to watch include:
- Localization Progress: BYD's ability to achieve 90% localization by 2027 will determine its cost structure and scalability.
- Charging Network Growth: The number of operational charging stations and their integration with renewable energy will directly impact adoption rates.
- Market Penetration: Sales of the Shark 6 and other models, particularly in the two-wheeler segment, will signal consumer acceptance.

The risks are clear: policy shifts, infrastructure delays, and competition from Chinese rivals like Yadea. However, BYD's partnerships, financial strength, and first-mover advantage in Pakistan mitigate these concerns.

In conclusion, BYD's strategic expansion in Pakistan offers a rare combination of policy tailwinds, infrastructure development, and market potential. For investors with a long-term horizon, this represents a high-conviction opportunity to participate in the next phase of the global EV revolution, where emerging markets are no longer followers but pivotal players.

[Riaz Haq]

China's BYD to assemble EVs in Pakistan from 2026 | Reuters

https://www.reuters.com/sustainability/boards-policy-regulation/chi...

BYD to roll out first Pakistan-assembled car by July–August 2026
25,000-unit plant under construction near Karachi
Local unit targets 30-35% share of the segment
Shark 6 pickup, BYD’s third model in Pakistan, to launch on Friday
KARACHI, July 24 (Reuters) - Chinese electric vehicle giant BYD (002594.SZ), opens new tab plans to roll out its first car assembled in Pakistan by July or August 2026 to capture growing demand for electric and plug-in hybrid vehicles in the region, a company executive said on Wednesday.
BYD, the world's top EV maker, has been expanding rapidly outside its home market, where it is in a strong price war. The Pakistan plant addresses rising demand from emerging markets and allows the company to take advantage of incentives offered by the Pakistani government.

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BYD (HKG: 1211, OTCMKTS: BYDDY) will begin operations at its Pakistan factory next year, increasing the Chinese new energy vehicle (NEV) maker's overseas production capacity.

https://cnevpost.com/2025/07/24/byd-to-assemble-cars-pakistan-2026/

The company plans to roll out its first electric vehicle (EV) assembled in Pakistan by July or August 2026 to meet growing demand for electric and plug-in hybrid vehicles in the region, Reuters reported today.

The factory, which has been under construction near Karachi since April, is being built in collaboration with Mega Motor Company, a subsidiary of Pakistan's utility firm Hub Power, according to the report, which cites Danish Khaliq, BYD Pakistan's vice president of sales and strategy.

The factory will initially operate on a two-shift system with an annual production capacity of 25,000 units, Khaliq said, without specifying when the factory will reach full production capacity or when mass production will begin, according to the report.

Khaliq said that the factory will initially assemble imported components and produce some non-electric parts locally.

He also mentioned that the factory will initially produce vehicles for the domestic market in Pakistan and may export to right-hand drive countries in the region based on freight costs and business economics.

BYD launched three models in Pakistan on August 17, 2024: the all-electric Atto 3, the Seal EV, and the hybrid Sealion 6.

In China, the Atto 3 is known as the Yuan Plus, and the Sealion 6 is called the Song Plus DM-i.

BYD may open its first NEV assembly plant in Pakistan in Karachi in the future, depending on development needs, the company said at the time.

The plant in Pakistan will meet the growing demand in emerging markets and enable the company to take advantage of incentives offered by the Pakistani government, Reuters notes in its report today.

BYD began delivering imported EVs in Pakistan in March, Khaliq said, without disclosing specific sales figures but said that sales of hundreds of vehicles had already exceeded internal targets by 30 percent.

Khaliq said he expects the market size for electric and plug-in hybrid vehicles in Pakistan to grow three to four times in 2025 from about 1,000 units in 2024.

He said BYD aims to capture a 30 percent to 35 percent share in the sector.

BYD will launch its Shark 6 plug-in hybrid pickup truck in Pakistan on Friday, according to the report.

The pickup truck was initially launched in Mexico in May 2024 under the name BYD Shark. The model is not available in the Chinese market and has been renamed Shark 6 in several overseas markets.

[Riaz Haq]

After India’s rejection, China’s BYD invests $1 billion to build a large car factory in Pakistan!

https://youtu.be/gBNKshxeJYM?si=ck-BzkMWHbm8sk7L

BYD, China’s electric vehicle giant, faced a surprising hurdle when India rejected its $1 billion proposal for an EV super factory in Hyderabad, despite years of investment and local expansion. This unexpected move has left global analysts questioning India’s unpredictable approach to foreign investment, especially from neighboring nations. As regulatory challenges and political tensions mounted following a 2020 border clash, BYD ultimately shifted its focus to Karachi, Pakistan—a strategic location with easier access to ports, political stability, and strong China-Pakistan ties. Discover how BYD’s shift highlights differences in investment climates between India and Pakistan and what this means for the future of the EV industry in South Asia. Like and share if you found this analysis insightful!

[Riaz Haq]

Husain Haqqani
@husainhaqqani
Pakistan’s Nishat Group has earmarked $100 million to build electric-powered vehicles in partnership with one of China’s largest car exporters, Chery Automobile Co.
Local car assembling starts in October, & manufacturing will follow.
@business
reports.

https://x.com/husainhaqqani/status/1951209832200958217

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Faseeh Mangi
@FaseehMangi
Pakistani tycoon Mian Mansha is setting up a factory to build EV cars with one of China’s largest car exporters, Chery Automobile

The conglomerate has earmarked about $100 million

They plans to debut five cars today and start local assembling in Oct.

https://x.com/FaseehMangi/status/1951189257227223537

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Nishat, Chery launch Omoda, Jaecoo

https://www.dawn.com/news/1928185/nishat-chery-launch-omoda-jaecoo

LAHORE: One of Pak­istan’s leading business conglomerates, Nishat Group, has partnered with Chery International — China’s largest automobile exporter — to launch its global brands, Omoda and Jaecoo, in the local market. The high-profile unveiling event was held on Friday.

The group announced plans to establish a car manufacturing facility near Faisalabad, with local assembly of electric vehicles (EVs) expected to commence in November. An investment of $100 million will be made through its subsidiary, Nexgen Auto, to support EV manufacturing and marketing operations in Pakistan.

In a significant industry first, five car models were unveiled simultaneously — more than typically seen at automotive laun­ches. The line-up included two long-range battery electric vehicles (E5 and J6), two plug-in hybrids (J7 and C7), and a hybrid vehicle (J5). The event was attended by a broad spectrum of participants, including political figures, environmental advocates, automotive influencers, and car enthusiasts.

Speaking at the event, Nishat Group Chairman Mian Mohammad Mansha welcomed the government’s focus on electric mobility, calling it a timely move to address climate and economic challenges. He said the group had chosen to partner with Chery International due to its commitment to environmental sustainability.

“The introduction of electric vehicles will help combat pollution and significantly reduce the country’s oil import bill,” he said. He added that his group’s existing automotive venture, Hyundai, has already sold over 50,000 units. Mr Mansha also announced plans to offer bank financing for electric cars through MCB Bank, another entity under the Nishat umbrella.

Mr Qi Joe, President of Chery International South Asia, expressed confidence in the partnership, stating that the collaboration would help position Omoda and Jaecoo among Pakistan’s top car brands.

In a statement, the company said the launch highlighted Nishat Group’s commitment to innovation and excellence. “The unveiling of a future-ready line-up, tailored to the evolving needs of Pakistani consumers, reflects Nishat Group’s strategic vision for the country’s automotive industry,” it noted.

The event marks a milestone for Nexgen Auto in its goal to redefine mobility in Pakistan by introducing cutting-edge technology, sustainable design, and intelligent performance. With the entry of Omoda and Jaecoo, the company aims to bring global innovation and a modern driving experience to local roads, setting a new industry benchmark.