Pakistan EV Launches to Accelerate Clean Energy Transition

by Riaz Haq

Aug 18, 2024

Pakistani automobile joint ventures with Chinese automakers BYD and Changan have recently launched several all-electric and plug-in hybrid models of automobiles in Pakistan. Earlier, Honda Atlas Cars Pakistan Limited announced plans to build a hybrid electric vehicles plant in the country. Other major brands like Toyota, Haval, and Hyundai are already offering similar models in the country. It all began with the 2019 electric vehicle policy approved by the government of Prime Minister Imran Khan to incentivize the electrification of the auto industry. Pakistan EV policy goal is to achieve 30% of new cars sales, 50% of new 2-wheeler and 3-wheeler sales and 30% of new truck sales by 2030. By 2040, the target is 90% of all new vehicle sales to be electric. The main incentive is the reduction of sales tax from 17% for internal combustion engine (ICE) vehicles to 1% for all-electric (EV) vehicles.

BYD EV. Source: CNBC


BYD Launch:
Chinese electric vehicle giant BYD has announced plans to open an EV production plant in Karachi.  It will start selling three EV models in Pakistan through a partnership with Mega Motors. Mega Motors is a unit of Pakistan's largest private utility Hub Power Co Ltd (HPWR.PSX), known as Hubco. 
"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, according to Reuters. "It's about driving a broader vision of environmental responsibility and technological innovation." "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 BYD factory will be built near Karachi’s Port Qasim area that already 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, according to Bloomberg. 
Last year, BYD’s total production – comprising battery-only powered cars as well as hybrids – was more than 3 million and surpassed Tesla’s production of 1.84 million cars for a second straight year, according to CNBC. 
A BYD model comparable to Tesla Model Y is $10,000 cheaper and has more features, according to news reports. 
Changan Launch: 
Master Changan Motors Limited (MCML), a joint venture between Pakistan's Master Group of Industries and China's Changan International, launched Changan’s electric-first brand, DEEPAL, this month in Karachi, Pakistan.  The joint venture unveiled the brand Deepal with 2 models, L07, the pure electric sports luxury sedan and S07 the pure electric premium SUV. 
Both Changan models offer 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 futuristic design, according to media reports. 
Changan has sold 45,000 cars in Pakistan in the last 5 years. 
Honda Atlas:
Last month Honda Atlas Cars Pakistan Limited (HACPL) announced its plan to invest Rs. 5 billion in a cutting-edge hybrid vehicle production facility in Pakistan. This investment will support the local manufacturing and assembly of hybrid electric vehicles (HEVs). 
The company recently reported a 324% jump in sales, totaling Rs. 15.97 billion compared to Rs. 3.77 billion in the same period last year. The company reported a gross profit of Rs. 1.01 billion for the first quarter of FY25.
Two and Three Wheelers:
Prior to the BYD and Changan EV launches, Pakistan granted EV manufacturing licenses to 32 local companies under the EV Policy 2019, according to the Business Recorder newspaper.  Metro Electric Bikes, VLEKTRA and Sazgar Engineering Works are among the key names leading the two and three wheeler EV manufacturing in Pakistan. 
“Motorcycle buyers have started to inquire about electric bikes, scooty, and scooters options. I believe many have postponed buying a normal two-wheeler with expectations that an electric two-wheel model may soon enter the market that is closer to their need,” said Sabir Sheikh, who is also the Chairman, Association of Pakistan Motorcycle Assemblers (APMA), according to media reports. 
Charging Infrastructure: 
A number of investors, including ADM Group, Hashoo Group and Hubco are planning to invest in building a nationwide EV charging stations network. The EV policy provides incentives for it by reducing import duty on charging equipment imports to just 1% and lower power tariffs. It also ensures uninterrupted power supply on feeders fir charging stations. 
Hubco said it will setup fast-charging stations across major cities, motorways and highways to enhance Pakistan's charging infrastructure, according to Reuters.  The EV policy calls for at least one fast DC charging station per 3km by 3km area in all major cities as well as DC fast chargers on all motorways every 15-30 km.
Soaring Imports of Chinese Solar Panels in Pakistan. Source: Bloomberg

Solar Power Boom:
With rapidly falling solar panel prices, Pakistan is experiencing a solar power boom in the country. The country imported some 13 gigawatts of solar modules in the first six months of the year, making it the third-largest destination for Chinese exporters, according to Bloomberg.
Rapid increase in solar power generation complements Pakistan's push to a clean energy economy and EV adoption. This may encourage some of the charging station operators to go solar with batteries to reduce their cost of power purchases from the grid. 
Climate Action:

Pakistan has contributed only 0.28% of the CO2 emissions but it is among the biggest victims of climate change. The US, Europe, India, China and Japan, the world's biggest polluters, must accept responsibility for the catastrophic floods in Pakistan and climate disasters elsewhere. A direct link of the disaster in Pakistan to climate change has been confirmed by a team of 26 scientists affiliated with World Weather Attribution, a research initiative that specializes in rapid studies of extreme events, according to the New York Times. 

Top 5 Current Polluters. Source: Our World in Data

Currently, the biggest annual CO2 emitters are China, the US, India and Russia. Pakistan's annual CO2 emissions add up to just 235 million tons. On the other hand, China contributes 11.7 billion tons, the United States 4.5 billion tons, India 2.4 billion tons, Russia 1.6 billion tons and Japan 1.06 billion tons. 

Pakistan's Annual CO2 Emission. Source: Our World in Data

The United States has contributed 399 billion tons (25%) of CO2 emissions, the highest cumulative carbon emissions since the start of the Industrial Revolution in the late 18th century. The 28 countries of the European Union (EU28), including the United Kingdom, come in second with 353 billion tons of CO2 (22%), followed by China with 200 billion tons (12.7%). 

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  • Riaz Haq

    Faseeh Mangi
    @FaseehMangi
    Signs are emerging that the latest conflict is hastening Pakistan’s transition to EVs

    VLEKTRA Electric Motorcycles expects battery-powered two-wheelers to account for 10% to 15% of the market in 2026, up from less than 1% two years ago.

    https://x.com/FaseehMangi/status/2037545212139188341?s=20

    -----------------

    Iran War Is Pushing Consumers to Break Up With Fossil Fuels
    EVs, solar panels, induction stoves and heat pumps, now cheaper than ever, are becoming more attractive as the conflict upends oil and gas markets.

    By Todd Woody

    https://www.bloomberg.com/news/features/2026-03-26/war-oil-price-sh...

    Just weeks ago, the US electric car market looked moribund. Amid plummeting EV sales, dealers were offering discounts as Detroit automakers scrapped electric lineups to make more gas-guzzling SUVs.

    Then oil prices surged after the US and Israel attacked Iran.

    Now, a used electric car showroom in San Francisco suggests the tide is turning again. As gasoline prices climb — hitting $6.81 a gallon at a nearby station on Wednesday — a flurry of drivers are making appointments to check out Ever’s lightly used EVs, many priced under $30,000.

    “Gas prices are coming up in almost every customer conversation,” said Maximilian Quertermous, Ever’s co-founder and chief operating officer. “The momentum of the last few weeks is among the strongest we’ve seen.”

    Ever is just one dealership, but signs of a shift are playing out across the world. In Southeast Asia, buyers are flocking to Chinese EV giant BYD Co.’s stores, while electric rickshaws are selling out in Pakistan. A shortage of cooking oil in India is driving a run on electric stoves. From Germany to Nigeria, interest in rooftop solar is surging. And in the UK, some homeowners are taking the plunge on expensive heat pumps.

    ---------

    In neighboring Pakistan, solar took off after the Ukraine war. Now, signs are emerging that the latest conflict is hastening the nation’s transition to EVs after the price of gasoline jumped more than 20%.

    Syed Raza Mohsin, founder of VLEKTRA Electric Motorcycles, said he expects battery-powered two-wheelers to account for 10% to 15% of the market in 2026, up from less than 1% two years ago. “Solar is a very good example of how private citizens themselves found a solution for high energy prices,” he said. “We are seeing similar trends in motorcycles.”

    Electric rickshaw maker Tezmo Motors has already sold out its March inventory, according to founder Moez Naseer, and is expecting a “very huge surge of orders.” Naseer said two fleet operators have placed orders since the Iran war started. “We are so petrol reliant, so people are finally figuring it out that we cannot rely on this anymore,” he said.

    In the Philippines, the government is stepping in to fill the gap. This week, a state-owned pension fund started offering loans of up to 500,000 pesos ($8,300) for home solar panels after President Ferdinand Marcos Jr. declared a national energy emergency due to the war.

    Mar 28

  • Riaz Haq

    Pakistan in talks with world’s largest EV battery maker CATL on investment cooperation — business chamber  | Arab News
    • Envoy to Beijing says China-Pakistan MoUs, joint ventures worth over $13 billion signed in two years
    • Says Pakistan eyeing “first-mover advantage” in sodium battery sector amid global clean energy transition

    KARACHI: Pakistan is in discussions with China’s CATL, the world’s largest electric vehicle battery manufacturer, over potential investment and cooperation in advanced battery technologies, Pakistan’s ambassador to Beijing said this week, as Islamabad pushes to attract industrial investment under the next phase of the China-Pakistan Economic Corridor (CPEC).

    China remains Pakistan’s largest strategic and economic partner, with the two countries deepening cooperation through CPEC, the flagship Pakistan arm of China’s Belt and Road Initiative launched in 2015. The first phase of CPEC focused largely on power generation, roads and transport infrastructure, while the second phase has increasingly shifted toward industrial cooperation, technology transfer, manufacturing, agriculture and special economic zones.

    Pakistan has recently intensified efforts to attract Chinese private-sector investment as it seeks to stabilize its economy under an IMF-backed reform program and position itself as a regional manufacturing and logistics hub.

    “Pakistan and China have made significant progress in strengthening bilateral economic cooperation with more than 300 Memorandums of Understanding (MOUs) and over three dozen joint venture agreements signed during the last two years, carrying a cumulative value exceeding $13 billion,” Pakistan’s Ambassador to China Khalil Hashmi said during a meeting on Monday with a Chinese business delegation at the Karachi Chamber of Commerce and Industry.

    Highlighting emerging opportunities in energy and technology, Hashmi said Pakistan was “currently engaged in active discussions with CATL,” which he described as one of the world’s largest battery manufacturers specializing in lithium-ion and increasingly sodium-based battery technologies.

    “He said Pakistan is encouraging the company to establish cooperation and investment initiatives in the country, expressing optimism that concrete developments may emerge during the forthcoming visit of the Prime Minister to China,” according to a statement released by the Karachi Chamber. 

    Global demand for EV batteries and energy storage systems has surged in recent years as governments and industries transition toward cleaner energy and electric mobility. CATL, headquartered in China, is the world’s dominant EV battery producer and supplies major global automakers including Tesla, BMW, Volkswagen and Ford.

    Pakistan has increasingly positioned itself as a potential destination for battery manufacturing and mineral processing investment, particularly as global attention shifts toward supply chains linked to electric vehicles, renewable energy and energy storage.

    Hashmi said the global market was gradually moving from lithium-ion batteries toward sodium-based battery technologies and noted that Pakistan possessed “abundant raw materials required for such industries.”

    “Pakistan aims to capitalize on the first-mover advantage in this evolving sector and is working steadily toward attracting investment in advanced battery manufacturing and new energy technologies,” the statement said, quoting the ambassador. 

    Hashmi also said Pakistan had established a mechanism to improve implementation of Chinese investment agreements, adding that nearly 30 percent of signed MoUs were now being converted into practical contracts and business ventures.

    5 hours ago

  • Riaz Haq

    Pakistan says China’s Dongjin Group to invest $15 million in battery plant in Faisalabad

    https://www.arabnews.com/node/2643228/amp

    Move expected to help Pakistan meet growing demand for batteries, driven by increasing number of electric vehicles, solar systems
    Plant likely to create jobs, support allied industries, including electronics, automotive components, packaging, chemicals, says official
    ISLAMABAD: Chinese company Dongjin Group recently announced its plan to invest $15 million in a dry battery facility in the eastern city of Faisalabad, state-run Associated Press of Pakistan (APP) reported on Monday.

    Dongjin Group designs, manufactures and sells lead acid batteries and chargers used in UPS systems, telecom, medical equipment, electric vehicles, solar and wind power systems and others. The Chinese company recently announced its plan to invest $15 million in the facility, APP said, adding that it will be established in the Special Economic Zone near Faisalabad.

    The investment agreement was signed with the Punjab Board of Investment and Trade (PBIT), the state-run media reported.

    “Chinese company Dongjin Group’s plan to establish a dry battery manufacturing facility in Allama Iqbal Industrial City is expected to help Pakistan meet growing demand for batteries, driven by the expansion of electric vehicles and solar energy systems,” APP said.

    Sharqui Ali Tipu, director of marketing at PBIT, said Dongjin Group decided to establish the plant after observing the increasing demand of batteries in Pakistan, particularly due to the growing use of electric vehicles and solar energy solutions in the country.

    He said the project is expected to generate economic and industrial activity across multiple sectors, while facilitating the transfer of modern technology.

    Tipu said the battery plant is likely to support allied industries, including electronics, automotive components, packaging, chemicals and engineering support services. He added that it would also create employment opportunities in Faisalabad and its surrounding areas.

    “Under Pakistan’s Special Economic Zone incentive package, the company will be eligible for a 10-year income tax holiday and a one-time exemption from customs duties and taxes on the import of plant and machinery,” APP said.

    Almas Hyder, former chairman of the Engineering Development Board, an apex government body under the Ministry of Industries & Production, noted that Pakistan is moving toward localizing lithium-ion battery manufacturing to strengthen energy security and reduce import dependence.

    Hyder said batteries have become strategically important globally due to their growing demand linked to renewable energy, electric vehicles and grid stability.

    “The greater the battery production in Pakistan, the higher the chances of reducing dependence on expensive electricity and imported fossil fuels,” Hyder was quoted as saying by the APP.

    4 hours ago