Pakistan has accelerated the popularization of new energy vehicle and electric motorcycle in the country, Gwadar Pro reported on Saturday. A national incentive program has already been launched for new energy vehicles, aiming to promote the rapid development of the country's new energy vehicle and electric motorcycle markets through a combination of policy guidance, subsidies, and incentives.

Forecasts indicate that by 2030, the country is expected to achieve an electric vehicle penetration rate exceeding 30%. Not long ago, China's Letin Auto Group has announced plans to set up a small electric vehicle (EV) manufacturing plant in Punjab province. Punjab's Minister for Industries and Commerce Chaudhry Shafay Hussain emphasized that the government was focused on the promotion of EVs and wanted Punjab to play a leading role in Pakistan’s clean mobility transition.

And Chinese new energy vehicle giant BYD is planning to launch its first car produced in Pakistan in July or August 2026 to meet growing demand for electric and plug-in hybrid vehicles in the region, a top executive said last month. Construction of the Pakistani plant has been underway near Karachi since April and the plant will have an initial annual production capacity of 25,000 vehicles. The factory will begin by assembling imported parts while also locally producing some non-electric components.

Initial production will be for the domestic Pakistani market, but there is potential for export to other right-hand drive countries in the future, depending on transportation costs and market economic conditions. Meanwhile, Chinese electric vehicle company MG already sells plug-in hybrid SUVs in Pakistan, and competitor Haval is expected to enter the market soon.

Given the current shortage of EV charging stations in the south Asia country, plug-in hybrids have become a more practical option for local consumers. "By 2025, Pakistan's electric and plug-in hybrid vehicle market will grow three to four times compared to 2024, reaching a total market size of approximately 3,000 to 4,000 vehicles.

BYD aims to capture a 30% to 35% share of this market segment," Danish Khaliq, BYD Pakistan’s vice president of sales and strategy, predicted. Industry watchers believe this influx shows the growing confidence of Chinese companies in Pakistan's EV sector, which is still in its infancy, but holds significant potential due to the rising cost of fuel and the government's policy incentives.

A report by the Pakistan Bureau of Statistics shows that Pakistan imports over 20% of its fuel. With the increasing adoption of new energy vehicles, the country will gradually reduce its reliance on imported fuel products, alleviate urban air pollution, and accelerate the achievement of its carbon neutrality goals.

Credit: Independent News Pakistan (INP) — Pak-China