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]

Chinese company announces to establish EV plant in Karachi

https://arynews.tv/chinese-company-announces-to-establish-ev-plant-...

The ‘Gauss Auto Group,’ a Chinese corporation, has announced to construct electric vehicle (EV) plant in Pakistan’s special economic zone near Port Qasim in Karachi.

The company would enter into a Joint Venture (JV) with AKD Group Holdings (Pvt.) limited and set up the plant near Port Qasim, Karachi on around 1000 acres of land.

The development comes after a delegation led by Mr. Chen Feng, CEO Gauss Auto Group and CEO AKD Group Holding, Mr. Nasir Rizwan visited the Board of Investment (BOI) and held a detailed meeting with the Federal Minister Board of Investment Chaudhry Salik Hussain and Secretary BOI Ms. Fareena Mazhar.

The delegation also highlighted their intention to export their locally produced EVs from Pakistan to other countries. The organization delivered a comprehensive presentation of their production plant and apprised BOI leadership on the variants of the vehicles they are already producing.

Secretary BOI briefed the delegation about Pakistan’s recently launched Electric Vehicle policy which offers benefits to both; existing and new manufacturers.

BOI leadership encouraged Gauss Auto Group to invest in auto sector of Pakistan and extended maximum support and facilitation to the company.

It is pertinent to mention here that Gauss Auto is an enterprise focusing on the innovation and development of automobiles and the integration of resources. The company is registered in Silicon Valley, California, and operates in Shanghai, China.

It is pertinent to mention here that the federal cabinet on Dec.22, 2021 had approved Pakistan’s first Electric Vehicle Policy.

[Riaz Haq]

Pakistan: How cheap is 'cheap electric car'? - BBC URDU

https://youtu.be/TsK-vBZEusY

پیٹرول سے نجات، ٹچ گیئر اور لیدر سیٹس۔۔۔ یہ پاکستان میں متعارف کروائی جانے والی الیکٹرک کار کی چند خصوصیات ہیں۔ اس کار کی چارجنگ کتنی دیر میں ہوتی ہے اور اس پر کتنا خرچہ آتا ہے، جانیے ہماری ویڈیو میں۔۔۔

[Riaz Haq]

This Fully Localized Electric Rickshaw is Roomier Than Wagon R

https://propakistani.pk/2022/07/30/this-fully-localized-electric-ri...

According to a company representative, MUVA electric rickshaws are made in Pakistan completely from scratch at their state-of-the-art facility in Lahore.

Pakistan Auto Show (PAS) 2022 saw participation from numerous promising prospects. One such up-and-comer is YES Electromotive — a fully indigenous electric vehicle (EV) maker that seeks to launch MUVA electric rickshaws in Pakistan.

The company is still fine-tuning the product through testing and extensive research and development before officially launching these rickshaws in the market, the representative said.

Short for Modular Utility Vehicle Architecture, MUVA covers a development program for light commercial vehicles. These tiny EVs will serve the same purpose as a conventional rickshaw, but with zero tail-pipe emissions and at almost 7-times less running cost than a petrol-powered three-wheeler.

MUVA electric rickshaw is an ultra-light commercial EV that seats a driver and three passengers. It has a maximum payload capacity of 300 KGs and a curb weight of 450 KGs. It has a single permanent magnet electric motor that makes up to 10.7 horsepower.

The company representative added that the MUVA rickshaw will be sold as a commercial EV only and that the company will aim for fleet sales. He added that YES Electromotive also seeks to adopt a ride-hailing service operating model, whereby the riders will be able to summon these rickshaws via a mobile app.

YES Electromotive is shaping up to be a promising addition to Pakistan’s public transport sector. Stay tuned for more details.

[Riaz Haq]

Finding EV batteries
We never learnt how to make engines so why not try our hand at batteries. Only this time, not for ourselves.


https://profit.pakistantoday.com.pk/2022/11/14/finding-ev-batteries-2/

Profit talked to a source at the Geological Survey of Pakistan, who on the condition of being anonymous, did tell us that there were various sites that had been identified with potential lithium reserves. Profit also reached out, persistently might we add, to Ahsan Iqbal, the Federal Minister of Planning & Special Initiatives. Sadly, we could not obtain a comment. Thankfully, his rejection indicates that there may actually be fire to the smoke because a flat rejection is very easy to give. More importantly, Pakistan has been touted to have lithium reserves as far back as 2005 based on a report by the Pakistan Bureau of Statistics.

These reserves were touted to be in Chitral and in Gilgit-Baltistan, but we just never got around to exploring them. Why? A mixture of a lack of finances and aforementioned areas being subject to an insurgency movement not too long ago. Most importantly, these areas in Pakistan are not random places on the map by any means. They, alongside Afghanistan, are part of the Kafiristan Valley. What is the importance of this? Afghanistan is projected to have the largest lithium deposits in the world. And where in Afghanistan are they? Afghanistan’s Nuristan province is touted as one potential destination. It also borders Chitral and Gilgit-Baltistan, and thus we come full circle. So let us tell you why Pakistan will squander this entirely.

Haval, Pakistan’s most technologically advanced company as of right now, chose to build a hybrid electric vehicle rather than an electric vehicle. This is very important, and very concerning. Why do we say this? Because Sazgar, Haval’s parent in Pakistan, does have access to electric vehicles through its arrangements with China’s Haval and BAIC. Yet, they chose not to. Why? “Pakistan is currently not ready for an electric car but it is ready for a hybrid electric one.” Ammar Hameed, Director at Sazgar Engineering Works, told Profit. Now why does Hameed believe that to be the case?

“Electric vehicles are not possible in Pakistan because you need to first install charging points across the country. It’s currently not feasible to own an electric car. They are good for driving within a city but you would find it hard to travel for example from Lahore to Islamabad. They are adding charging stations on the motorway but you will have a shortage of chargers as more EVs come on the road,” Hameed told Profit. “You’ll have to wait half an hour to charge your car. Even with a supercharger, it will take 15-20 minutes to charge. Now imagine there are only two chargers on the motorway and you have four to five cars that need to be charged.” Hameed continued. He is not alone in his concerns

“People do not have the assurance e.g. When I go as a consumer to buy a vehicle, I would like to go from here to Islamabad to Multan to Bahawalpur in one go,” Dr Naveed Arshad, Associate Professor at LUMS told Profit. What does this lack of assurance mean? It means lower potential sales. What do fewer sales mean? Fewer companies want to actually launch electric vehicles. Now what is the importance of this, apart from wanting to find a more affordable alternative to the E-Tron? Lack of interest from the government, and likely subsequent governments to come. Profit understands that this is a sweeping statement so, therefore, let’s contextualise it by explaining how the State approaches industrial policy.

[Riaz Haq]

BEIJING: In a move to better investigate and research lithium reserves in Pakistan, a strategic agreement was signed between the China-Pakistan Joint Research Centre on Earth Sciences and Tianqi Lithium Co. at an international conference on lithium battery industry held in Sichuan China, as per a statement by the China-Pakistan Joint Research Centre on Earth Sciences.

https://mmnews.tv/chinese-company-to-explore-lithium-resources-in-p...

The strategic agreement says that both parties will collaborate on the research and application of lithium resources in Pakistan. Efforts will also go to personnel training and academic exchanges to develop joint research on lithium resources in the country, CEN reported.

Lithium reserves have emerged as an important source in the electronic vehicle (EV) industry around the world including Pakistan since the resources are the main raw material of EV battery, which takes up a sizeable portion of EV production cost.

According to Volza’s lithium imports data in Pakistan, Pakistan imports most of its lithium products including lithium primary cells and batteries from countries such as China, the United States and Germany.
Last year, Pakistan devised the Automotive Industry Development and Export Plan (AIDEP 2021-26) with an aim to boost the local EV industry, bring related manufacturing locally and also reduce the use of fossil fuel.

Headquartered in China’s southwestern province of Sichuan, Tianqi Lithium is a global leader in developing and manufacturing lithium products, notably developing lithium-ion battery technologies for application in the electric vehicle and energy storage industries.

[Riaz Haq]

New players eye Pakistan’s growing hybrid, electric vehicles market

https://www.dawn.com/news/1827302

As the auto market continues to grow in Pakistan, new players are setting their sights on introducing hybrid as well as electric vehicles (EVs) in the country, and one of the largest automakers has announced its entry into Pakistan.

The BYD Group of China has recently announced its entry into the passenger vehicle market in Pakistan in collaboration with Mega Conglomerate Pvt Ltd, the parent company of Hub Power and Haleeb Foods.

During a signing ceremony recently held in China, Aly Khan, executive director of Mega, highlighted plans to promote EV adoption in Pakistan.”

He stated that three BYD showrooms would be established in Karachi, Lahore, and Islamabad in 2024. The move is expected to accelerate the electrification of Pakistan’s automotive industry, which has largely been based on petroleum fuel.

Meanwhile, a senior official of the Ministry of Industries and Production said that BYD and Mega have not applied for the licence to establish an assembly plant in Pakistan. It is more likely that the company and the local partner would import the vehicles into Pakistan, as other EVs, including some European brands, are being sold in the country.

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.

Ali Asghar Jamali, chief executive officer of Indus Motor Company, said that the auto sector was transforming towards reducing dependency on fossil fuels, which was especially important in countries where petroleum fuel was imported.

However, Mr Jamali added that, 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.

“The HEV technology presents a practical and efficient solution in the current scenario, as electricity and electric chargers are not available everywhere,” he added.

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.

Responding to the query, Asim Ayaz of Engineering Development Board, an attached department of the Ministry of Industries and Production, said that 34 licences have been obtained by two and three-wheeler manufacturers.

He acknowledged that 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, but added that the ministry is proposing to have an EV charging station at every gas station to enhance the availability of charging options.

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.

[Riaz Haq]

EV Giant BYD Plans to Build Karachi Plant as Part of Entry into Pakistan – BNN Bloomberg

https://www.bloomberg.com/news/articles/2024-08-15/ev-giant-byd-pla...

Workers assemble a BYD Co. Dolphin compact hatchback electric vehicle inside the company's new plant in Nikhom Phatthana, Rayong province, Thailand, on Thursday, July 4, 2024. BYD's shares have defied heavy losses in EV stocks around the world to gain more than 6% in Hong Kong this year thanks to the introduction of the fifth generation of its plug-in hybrid drive system in May. Photographer: Valeria Mongelli/Bloomberg (Valeria Mongelli/Bloomberg)

(Bloomberg) -- Chinese electric carmaker BYD Co. plans to build a factory in Karachi with a local partner to capture a share of Pakistan’s growing EV market, according to a person familiar with the matter.The company will reveal three models it plans to sell in Pakistan, including an SUV and a sedan, at its brand launch on Saturday, said the person, who asked not to be identified due to rules on speaking to media. BYD aims to introduce additional models, including both battery-electric and plug-in hybrid vehicles, to the market at a later date. A BYD spokesperson confirmed it planned to enter the market with battery-electric and plug-in hybrid vehicles but declined to comment on its plans to invest in a factory in Pakistan and other details. Pakistan is the world’s fifth-largest nation by population that has seen Chinese companies including Great Wall Motor Co., SAIC Motor Corp. and Chongqing Changan Automobile Co. enter the market in recent years and compete with Japanese companies including Toyota Motor Corp and Honda Motor Corp.’s local units. EV sales are still marginal in Pakistan relative to total auto sales.BYD has teamed up with one of Pakistan’s largest business groups, Mega Conglomerate Pvt., in a partnership deal that goes beyond the usual dealership model they have in most markets, the person said. The Chinese company will be working in a joint venture with Mega Motors, a subsidiary of Hub Power Co., Pakistan’s largest independent electricity producer.
The factory will be set up near Karachi’s Port Qasim area that houses assembly plants for other automobile companies including Toyota, Suzuki Motor Corp. and Kia Corp.’s local units. It will be completed in the first half of 2026 with exact details of the plant still under discussion, according to the person.BYD will set up showrooms in Karachi, Lahore and Islamabad to start selling in the fourth quarter this year, said the person.China’s best-selling car brand, which sold three million units in 2023, is making a big push especially in Southeast Asia, Europe and Latin America, to capitalize on its status as a top EV and hybrid maker.The Shenzhen-based firm, which has a presence in more than 80 countries, has signed deals with Hungary, Turkey and Brazil to start EV production. Its first factory outside of China opened in Thailand last month.

[Riaz Haq]

Faseeh Mangi
@FaseehMangi
Changan launches EVs in Pakistan

The cars were designed in Italy by designers who worked on Buggati and Lamborghini Urus

Deepal L07 and S07 are priced at 15.5m-16.5m rupee

https://x.com/FaseehMangi/status/1824347849758302478

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DEEPAL: Changan Motors unveils electric-first brand in Pakistan

https://arynews.tv/master-changan-motors-unveils-electric-first-bra...

KARACHI: Master Changan Motors Limited (MCML), a joint venture between Master Group of Industries and Changan International, unveils Changan’s electric-first brand, DEEPAL on August 16th, 2024, at Dolmen Mall Clifton, Karachi. Customers can have first-hand experience and test drive cars at Dolmen Mall until the 25th of August.

MCML unveiled the brand Deepal with 2 models, L07, the pure electric sports luxury sedan and S07 the pure electric premium SUV. Both cars offer thrilling 250 HP and 320 Nm of instant torque, going from 0-100 km/hr in just 5.9 seconds. The Ternary Lithium battery by CATL has a capacity of 66.8 kWh and provides an exceptional range of up to 540 km in L07 and 485 km in S07. The cars are designed in Italy in Changan’s R&D center and have won the German RedDot design award in 2023 with its head-turning futuristic design language.

The indicative introductory price announced is comparable to other cars with gasoline engines (both ICE & Hybrids). MCML is offering a complementary fast home charger of 7kW with every car that can charge in 5-8 hours.

The word DEEPAL signifies Deep Friendship (Pal), the brand was born from a joint partnership between three global giants: Changan, Huawei, and CATL who join hands to create best value for customers using economies of scale. Changan, one of China’s largest and oldest automobile brands developed the EV-first EPA-01 platform. Huawei contributes with its advanced Harmony OS intelligent software using the Snapdragon 8155 processor, while CATL, the world’s leading battery manufacturer, provides the Ternary Lithium battery with 99% SOC accuracy virtually eliminating the range anxiety.

41% of Pakistan’s energy mix is based on non-fossil fuel energy generation, on the other hand the oil import bill of USD 15.16bn is Pakistan’s largest imported commodity that has the most burden on the country’s foreign reserves. It makes

[Riaz Haq]

Tesla's Chinese Rival BYD Set To Electrify Pakistan: To Open New EV Plant and Showrooms - BYD (OTC:BYDDY) - Benzinga


ZINGER KEY POINTS
BYD will build an EV plant near Karachi's Port Qasim and open showrooms in Karachi, Lahore, and Islamabad.
The new factory, expected to be completed by mid-2026, marks BYD's strategic entry into Pakistan’s growing but small EV market.

https://www.benzinga.com/markets/equities/24/08/40419284/teslas-chi...

BYD Co., Ltd. BYDDY is reportedly set to establish an electric vehicle (EV) plant in Pakistan as part of its strategy to grow its presence in the global auto market.

At its brand launch on Saturday, the company will display three models it plans to sell in Pakistan, including an SUV and a sedan, reported Bloomberg.

BYD plans to launch new models, including battery-electric and plug-in hybrid vehicles, to the market later.

A BYD spokesperson confirmed to Bloomberg that the company plans to enter the market with battery-electric and plug-in hybrid vehicles but declined to comment on the factory investment in Pakistan and other specifics.



BYD Co., Ltd. BYDDY is reportedly set to establish an electric vehicle (EV) plant in Pakistan as part of its strategy to grow its presence in the global auto market.

At its brand launch on Saturday, the company will display three models it plans to sell in Pakistan, including an SUV and a sedan, reported Bloomberg.

BYD plans to launch new models, including battery-electric and plug-in hybrid vehicles, to the market later.

A BYD spokesperson confirmed to Bloomberg that the company plans to enter the market with battery-electric and plug-in hybrid vehicles but declined to comment on the factory investment in Pakistan and other specifics.

[Riaz Haq]

China's BYD plans car plant in Karachi as part of Pakistan entry | Reuters


https://www.reuters.com/business/autos-transportation/chinas-byd-pl...

KARACHI, Aug 17 (Reuters) - Chinese electric vehicle giant BYD (002594.SZ) on Saturday announced plans to open a car production plant in Pakistan, where it will also start selling three models through a partnership with Mega Motors.
BYD is the first major new electric vehicle (NEV) entrant in the Pakistani market, where there is a lack of charging infrastructure.
"Our entry into the Pakistani market is not just about bringing advanced vehicles to consumers," said Liu Xueliang, BYD's general manager for Asia Pacific.
"It's about driving a broader vision of environmental responsibility and technological innovation."
BYD also plans to open three "flagship stores and experience centres" in Karachi, Lahore and Islamabad, the company said at a launch event in Lahore, adding it plans to start selling two SUV models and a sedan from the fourth quarter of 2024.
Mega Motors is a unit of Pakistan's largest private utility Hub Power Co Ltd (HPWR.PSX), known as Hubco.
"We will establish Pakistan's first NEV assembly plant... dedicated to producing BYD's cutting-edge new energy vehicles," said Hubco Chief Executive Kamran Kamal, who described the deal as a "landmark investment".
The new plant will begin operations in 2026, Kamal told Reuters.
Hubco will setup fast-charging stations across major cities, motorways and highways to enhance Pakistan's charging infrastructure.