The automobile sector of Pakistan is expected to undergo a drastic transformation over the next decade as the government has approved the electric vehicles policy.
Electric vehicle policy paving the way for introducing such vehicles in the market of 207 million people. It provides multiple incentives for electric vehicle manufacturers including a massive reduction in taxes from 43% to 11.25%.
Electric mobility is expanding at a rapid pace throughout the world. The global electric car fleet expanded to 5.1 million, up 2 million from the previous year in 2018.
According to latest data of the International Energy Agency (IEA), China remains the world’s largest electric car market, followed by Europe and the United States. Norway happens to be the global leader in terms of electric car market share.
According to the electric vehicle policy, the demand for oil products will drop by millions of tonnes by the year 2030.
An auto industry veteran, heads EV Technologies Shaukat Qureshi said “Though taxes on electric vehicles were also lower earlier compared to oil-operated vehicles, it was not viable to start an electric vehicle business under the previous tax regime,”
Total investment of only Rs2 billion will be needed to establish the electric vehicle plant with capacity to produce 20,000 vehicles annually on a double-shift basis according to him. The plant, being established over 80 acres of land, will begin production next year.
He added that that the plant would be a composite one which would be capable of producing electric bikes and vans as well in addition to the electric cars.
He talked about the electric vehicle policy that it would be a turning point for the industry and would also help alleviate pressure on the country’s current account deficit by reducing the oil import bill. Plants for conventional cars are more expensive to establish as they cost around 10 times more than an electric vehicle car plant.
The government has approved the policy draft prepared by the Ministry of Climate Change. The draft, however, had faced stiff resistance from the Ministry of Industries and the Engineering Development Board (EDB).
President of the Pakistan Electric Vehicles and Parts Manufacturers and Traders Association (PEVPMTA) Ehteshamul Haq remarked “It is only a matter of time when Pakistanis will be able to drive electric vehicles in the country,”
He further said “People who are opposing this technology today will be using and investing in it in the days to come.