Brief Overview of Pakistan's Electric Vehicle Policy

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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Comment by Riaz Haq on October 28, 2020 at 7:03pm

EVs: Light it up. I am quoted in this Business Recorder article on #ElectricVehicles in #Pakistan written by @SattarHuma https://www.brecorder.com/news/40028733 Riaz Haq argues that EV assembly is not difficult: “EVs have fewer parts than fossil fuel vehicles. They should be cheaper and easier for EV-makers to assemble and for EV-users to maintain [once bought]. The best option for Pakistan is to do joint ventures with Chinese companies that have substantial expertise in EV technology to leapfrog the entire process”.

Comment by Riaz Haq on November 29, 2020 at 6:58pm

China’s push into electric vehicles began just over a decade ago, spearheaded by a former engineer for Audi named Wan Gang. While more than 30 billion yuan ($4.54 billion) in subsidies attracted many worthless start-ups, a handful survived. Nio listed in New York in 2018 and has climbed more than 340% since. Li Auto and Xpeng went public in the U.S. this year and their shares are up more than 65% and 35%, respectively.


https://www.cnbc.com/2020/10/23/chinas-electric-car-strategys-impli...

-------------
While California-based Tesla captured popular attention for electric cars, national policy in Beijing encouraged the launch of several rivals in China, the world’s largest auto market.
“Over the next five years we anticipate Chinese players across the EV supply chain to aggressively enter the overseas market,” UBS analysts wrote in a note Wednesday.
Once a fringe item in a global energy market centered on oil, electric vehicles are part of a potential new ecosystem that includes self-driving cars and ride-hailing, says Daniel Yergin, vice chairman at IHS Markit.

Comment by Riaz Haq on December 9, 2020 at 9:42am

Pakistan will have 30% #ElectricVehicles by 2030. Along with #Denmark and #Norway, #Pakistan co-chairs a 32-nation Group of Friends on Sustainable #Energy, which is committed to a transition from fossil fuel to renewable energy. #renewableenergy https://www.dawn.com/news/1594548

Pakistan has informed the international community that it’s working on a plan to ensure that by 2030 at least 30 per cent of the vehicles used in the country are electronic.

Along with Denmark and Norway, Pakistan co-chairs a 32-nation Group of Friends on Sustainable Energy, which is committed to a transition from fossil fuel to renewable energy.

Pakistan is also a member of the Group of Friends on Climate Change, which is also committed to promoting the use of safe, renewable energy.

Speaking at a virtual meeting of this group in New York earlier this week, Pakistan’s UN Ambassador Munir Akram warned that most developing countries could fail to fulfill their commitments to the goal of creating a clean environment if they were not helped in making an adequate recovery from the Covid-19 crisis.

ARTICLE CONTINUES AFTER AD

“If developing countries are destitute, if there are humanitarian disasters, if we are unable to recover from Covid, I think all other actions for many developing countries will become irrelevant,” he said. “So urgent and immediate actions are needed.”

The Pakistani envoy, who is also the president of the UN Economic and Social Council (ECOSOC), urged major emitters of harmful gases into the atmosphere to fulfil their commitment to creating a safe and clean environment for all.

“There are positive indications I agree, but I believe that these should be made much clearer as we go forward, especially from the biggest country, the United States,” he said. “We look forward to what the new US administration will have to say in the coming months.”

Urging the world’s leading nations to fulfil their pledge for the hundred billion annual commitment on climate finance, Ambassador Akram said: “I think for many developing countries that will be an acid test.”

Pakistan, he said, was one of the smallest emitters of carbon in the world, but it’s also one of the most vulnerable countries with devastating environmental impact.

“We have an extensive and ambitious plan, both on adaptation, mitigation,” he said, adding that Pakistan was committed to meeting the targets set by various international agreements for promoting clean energy.

“We are also a champion on financing investment in renewable energy, and we look forward to playing that role as well,” he said.

Ambassador Akram also underlined the need for concrete progress on development transfer and deployment of technology in developing countries.

In August, Pakistan unveiled a plan to boost the share of renewable energy to 30 per cent by 2030, up from about 4 per cent today.

During the first phase, Pakistan aims to increase the share of renewables in power mix to 30 per cent by 2025. The targeted mix will include mainly wind and solar power, but also geothermal, tidal, wave and biomass energy.

With boosts in hydropower capacity, Pakistan hopes to bring the share of clean energy in its electricity mix to 65 per cent by 2030.

But plans to build seven more coal-fired power plants during the second phase of the China-Pakistan Economic Corridor project could prevent the country from reaching this goal. Pakistan’s intended move to clean energy has also been delayed by the coronavirus pandemic.

Comment by Riaz Haq on December 16, 2020 at 9:00pm

#Toyota set to roll out electric tricycle in #Pakistan. The modern electric tricycle can carry a weight of 150 kilograms and after a full charge it can run up to 60 kilometers. #ElectricVehicles https://www.thenews.com.pk/print/759789-toyota-set-to-roll-out-elec...

Toyota is all set to introduce electric tricycles in Pakistan to meet the demand of low-cost and fuel-efficient transport mode in the country with growing auto market demand.

An agreement between Hiroyuki Toyoda, chairman of T-Trike Company – a subsidiary of Toyota Motors – and Rana Abid Hussain, president of Pak-Japan Business Council, was recently signed for the distribution rights of electric tricycles.

Hussain told The News that initially 3,000 electric tricycles would be introduced in Pakistan, while in the next phase the electric bicycle will also be manufactured locally for which talks are underway.

The council president said the chairman of the company is scheduled to meet the Ambassador of Pakistan in Japan Imtiaz Ahmed next week after which the formal exports will take place. Electric tricycle is manufactured by Toyota Motors, a world-renowned automobile company of Japanese origin.

The vehicle will be introduced in partnership with the Pak-Japan Business Council. The new electronic tricycle developed under the supervision of Hiroyuki Toyoda, a son of Kiichiro Toyoda, the founder of Toyota Motor Corporation. Hussain said electric tricycle is rapidly gaining popularity in Japan and the company has established 150 sales locations across the country. The modern electric tricycle can carry a weight of 150 kilograms and after a full charge it can run up to 60 kilometres.

Hussain said the tricycle can be easily used for courier services, vegetable hawkers and other small businesses. Without petrol this electric cycle will prove to be very economical, he said. Auto demand is fast increasing in Pakistan. With a wide gap of over 600,000 vehicles in demand and supply, used-cars are the most sought-after option. Cars are still expensive in the country ranked 154th in the world in terms of GDP per capita.

New auto policy is encouraging newcomers in Pakistan’s auto field that are importing semi knocked-down and completely knocked down cars in the country. Their prices are still out of range of majority of customers. Taxation is yet to be rationalised to make car ownership affordable, according to local analysts.

Comment by Riaz Haq on December 23, 2020 at 4:49pm

The battle within the electric-vehicle industry will intensify
The new kids v the old hands

The World Ahead

https://www.economist.com/the-world-ahead/2020/11/17/the-battle-wit...

The surging share price of Tesla, now the world’s most valuable carmaker, provides a big incentive for incumbents and newcomers to catch up. Tesla may lead in battery technology and software, but to make those advantages stick it must prove that “production hell” is behind it. The firm’s boss, Elon Musk, dreams of making 20m cars a year; in 2019 he made 370,000. Scaling up manufacturing has caused Tesla its biggest headaches. Will its new “gigafactories” in Texas and near Berlin come online as smoothly as a new plant in Shanghai, providing proof that Tesla can expand at will?

Tesla may have some catching up to do in large-scale production, but established carmakers face an equally daunting challenge: learning how to write software. Electric cars require integrated software, not just to ensure that batteries and motors work together to provide the best performance, but to connect the car to the outside world. Incumbent carmakers are struggling to combine disparate electronic systems from different suppliers to create the seamless experience offered by Tesla, which constantly improves its cars with smartphone-style “over the air” software updates.

Pivoting from mechanical engineering to developing software and providing the mobility services that customers will increasingly demand (such as ride-hailing and ride-sharing) is not the only challenge. Incumbents must also wind down investments in combustion-­engine technology and make the alliances needed to catch up on batteries and software. Expect more joint ventures and investments in startups, as they try to share costs, shift away from petrol power and bring in new thinking.

And what of the Tesla wannabes, from China’s Li, Nio, WM Motor and Xpeng to American firms such as Fisker, Lucid and scandal-hit Nikola? Cash from excitable investors has poured in and established carmakers are also taking stakes—as are tech giants, keen to get involved as transport goes digital. But which companies will have staying power? Can the wannabes persuade investors that they have proprietary technology that will give them a long-term advantage?


Flashy launches of vehicles are one thing, but as the industry’s travails show, working out how to make cars at scale, when bits and bytes are as important as brakes and bodywork, is quite another. Establishing retail and maintenance networks is no joyride, either. The coming year will make clearer which of Tesla’s competitors, new and old, can stay in the race.

Comment by Riaz Haq on March 6, 2021 at 9:11pm

Worlds largest #Tesla #ElectricVehicle #Supercharger V3 Station Approved For Santa Monica, #California, with 62 V3 (250 kW) stalls. Currently, the largest Supercharger station in the world is in #Shanghai, #China, with 72 stalls of V2 (120 kW) https://insideevs.com/news/492495/massive-62-stall-tesla-supercharg...

Following long discussions and plenty of objections, Tesla will move forward with the two-facility 62-stall Supercharger site.
Just two days ago, we reported about potential plans for a massive Tesla Supercharger V3 station in Santa Monica, California. The Tesla site will be the largest of its kind in the world, with 62 V3 (250 kW) Supercharging stalls distributed between two facilities. After hours of discussion, the charging project was approved.

For reference, the world's largest V3 Supercharging station is in Firebaugh, California, with 56 stalls. Currently, the largest Supercharger station in the world is in Shanghai, China, with 72 stalls. However, the Shanghai station uses the former V2 (120 kW) Supercharging technology.


The Santa Monica Planning Commission finally approved the project with a 5-2 vote after hours of discussion, which was a result of objections and opposition to the future project. It will be located at 1401 Santa Monica Boulevard, with two sites separated by an alley. One site will house 36 stalls while the other will have 26. It will also feature solar power and battery storage.

Local residents mentioned concerns about the Supercharger station's fan noise, booming car sound systems waking people late at night, and the worry of homeless people trying to access the Supercharger station's restrooms, among other concerns. You can check out the Santa Monica Planning Commission’s vote by clicking on the video in the tweet above.

It's important to note that despite the lengthy question and answer session, as well as the long list of concerns, it comes as no surprise the commission approved the project with only two votes in opposition. While there are often concerns about such projects, there's something to be said about having the world's largest Tesla Supercharger station, and a progressive California city is arguably an ideal location for the charging facility.

Comment by Riaz Haq on May 23, 2021 at 7:50am

#Japan's #Hitachi picks #Pakistan for #emergingmarket break in electric bus chargers.
Japanese group also eyes deals in #MiddleEast for zero-emission infrastructure. #ElectricVehicles #ClimateAction #CleanEnergy https://asia.nikkei.com/Business/Technology/Hitachi-picks-Pakistan-...


Hitachi will help build charging infrastructure for electric buses in Pakistan, part of the Japanese industrial group's search for deals in this sector in South Asia and the Middle East, Nikkei has learned.

Hitachi ABB Power Grids, a subsidiary of the Tokyo-based blue chip, sees emerging markets as an important proving ground for its charging system, which replenishes bus batteries not only at terminals but also in quick bursts at each stop.

Demand for electric buses is projected to surge as Asian nations seek to temper urban sprawl with low-carbon-emissions technology. By 2030, 3 million to 5 million electric buses will be in service worldwide, up from about 500,000 in 2019, the International Energy Agency forecasts.

In Pakistan, Hitachi ABB Power Grids will work with local bus company Daewoo Express and Chinese electric bus maker Sky-well New Energy Automobile Group to build a network. The Hitachi unit has reached a preliminary agreement to supply charging infrastructure for this effort.

Sky-well will supply buses built outside of Pakistan to Daewoo Express, with a view to eventually assembling them in the country.

In the Middle East, Hitachi ABB Power Grids will team with another Chinese bus maker, Yinlong Energy. Charging equipment there will need to be built to withstand searing daytime temperatures and sandstorms.

Emerging markets are home to many cities with underdeveloped urban transportation, giving them a unique opportunity to jump directly to the most advanced zero-emission technology.

Hitachi aims to eventually transfer the know-how it gains in these countries to projects in advanced economies.

The company is not the only Japanese player seeking overseas growth in electric buses. Trading houses Mitsui & Co. and Sumitomo Corp. have enlisted their own international partners in this field.

Shares in Tokyo-listed Hitachi -- whose businesses span power grids, trains, factory automation and appliances -- reached a roughly 20-year high in Tokyo trading on Friday, lifted by forecasts that the company is headed toward a record net profit for the second year in a row.

Comment by Riaz Haq on June 13, 2021 at 10:21am

Is #Apple #EV Under Development? Apple Has Hired Former BMW i3 & i8 Exec For #ElectricCar Project. Several #Tesla executives have moved to Apple over the years, but there's still no sign of any car or related platform. https://insideevs.com/news/513449/apple-hires-bmw-exec-ev/?fbclid=I... via @insideevs.com

Apple has been touting an EV on and off for years. It this the real deal now?
According to a recent article by Autoblog, based on information from sources familiar with the matter, Apple has hired Ulrich Kranz to head up its electric car project. Kranz is a former BMW executive with ties to the i3 and i8. A spokesperson from Apple has confirmed the hiring of Kranz.

A few months ago, Kranz left his role at self-driving startup Canoo, and it seems Apple jumped on the opportunity to hire him rather quickly. Kranz was actually the co-founder and CEO of Canoo. He left a senior vice president position at BMW to move forward with Canoo. His group at BMW worked on developing the i3 electric car and i8 plug-in hybrid.

For years, people have talked about the parallels between Tesla and Apple. There has also been much talk about the potential for the companies to join hands. Moreover, skeptics have pointed to a potential Apple Car as a "nail in the coffin" for Tesla. However, while Tesla continues to innovate, build global factories, and outsell all other EVs across the globe, Apple has certainly been taking its time.

Apple has also been very wishy-washy about its EVs plans, promising to bring the Apple Car to market, changing its mind, looking to other companies to build its cars, canceling the project, reinstating the project, and now, hiring a top legacy auto executive.

Many Apple fans will tell you this hire is a big deal since it means Apple definitely has plans to bring an EV to market. However, until there's proof that a car is actually coming, we're not holding our breath. Nonetheless, we'd love to see an Apple EV become reality, and we hope Kranz is the answer. If any company has what it takes to follow Tesla's lead, Apple should be on the list, but it could be a long road ahead.

Apple's car efforts started way back in 2014, but after just two years, the company decided to table the project in favor of an autonomous driving platform. Several Tesla executives have moved to Apple over the years, but there's still no sign of any car or related platform.

Do you have any faith in an upcoming Apple Car? Is this recent Apple hire enough to really get the ball rolling? Let us know your thoughts on this in the comment section below.

Comment by Riaz Haq on November 25, 2021 at 8:18pm

Tax breaks kick Pakistan's electric car shift into higher gear

https://www.reuters.com/business/cop/tax-breaks-kick-pakistans-elec...

ISLAMABAD, Nov 22 (Thomson Reuters Foundation) - Pakistani businessman Nawabzada Kalam Ullah Khan had been planning to swap his family's petrol-powered cars for electric models for years.

But it wasn't until a set of massive tax cuts came into effect in July that the 29-year-old from Pakistan's capital Islamabad finally put in an order for two electric cars.

"Someone has to take the initiative to switch to these cost-efficient, environment-friendly vehicles in the face of increasing pollution in big cities - and we've done it," Khan said.

His new cars, he said now cost about five times less to run day to day than his old vehicles, a major incentive to make the switch.

Major Pakistan and Indian cities are struggling with dangerous levels of air pollution, with Pakistan's Lahore this week declared the most polluted city in the world.

Heavy use of fossil-fuel-powered vehicles for transport combined with smoke from seasonal crop burning make the problem particularly severe at this time of year.

But Pakistan's electric vehicle push is picking up speed, nearly two years after the country launched its ambitious green policy, which envisions a shift to 30% electric cars and trucks nationwide by 2030, and 90% by 2040.

Key to the shift are hefty tax exemptions for both electric vehicles imports and imports of parts and equipment to build the cars in Pakistan.



That has helped make the vehicles more affordable, industry figures said, as Prime Minister Imran Khan's government pushes ahead with its plan to cut carbon emissions and urban pollution.

The general sales tax on locally manufactured electric cars - those with batteries holding less than 50-kilowatt hours (kWh) of power - has dropped from 17% to nearly zero, said Asim Ayaz, general manager of the government's Engineering Development Board (EDB).

At the same time, the customs duty on imported electric car parts - such as batteries, controllers and inverters - is down to 1%.

The duty on importing fully built electric cars also has fallen from 25% to 10% for one year, Ayaz told the Thomson Reuters Foundation.

Officials say the tax relief is a big step toward implementing Pakistan's National Electric Vehicle Policy, originally passed by the cabinet in November 2019.


It aims to put half a million electric motorcycles and rickshaws and 100,000 electric cars, vans and small trucks into the transportation system by 2025.

"Definitely the tax exemptions make the price point (on electric vehicles) competitive," said Malik Amin Aslam, the special assistant to the prime minister on climate change.

"It makes it extremely attractive for the customer to go electric."

Aslam said if about a third of new cars sold run on electricity by 2030, as envisioned, Pakistan could see a big drop in climate-changing emissions and pollution.


Electric vehicles currently produce 65% fewer planet-warming gases than those running on fossil fuels, he said.

Pakistan ranks second, behind Bangladesh, according to a list of nations with the worst air quality compiled last year by IQAir, a Swiss group that measures levels of lung-damaging airborne particles known as PM2.5.

In Punjab, Pakistan's most populous province with Lahore as its capital, transport accounts for more than 40% of total air-polluting emissions, followed by industry and agriculture, according to a 2019 study by the United Nations' Food and Agriculture Organization.

Shaukat Qureshi, general secretary of the Pakistan Electric Vehicles and Parts Manufacturers and Traders Association, said the new tax cuts mean savings of up to 500,000 rupees ($2,900) on imported small electric vehicles.

Comment by Riaz Haq on November 25, 2021 at 8:18pm

Tax breaks kick Pakistan's electric car shift into higher gear

https://www.reuters.com/business/cop/tax-breaks-kick-pakistans-elec...

Shaukat Qureshi, general secretary of the Pakistan Electric Vehicles and Parts Manufacturers and Traders Association, said the new tax cuts mean savings of up to 500,000 rupees ($2,900) on imported small electric vehicles.

He said many members of the association have used the incentives to order them for the first time.

There are no reliable figures on how many electric cars local importers have ordered brought into the country since the government announced the exemptions.

But in his other role as chief operating officer of car company Zia Electromotive, which imports and manufactures electric vehicles, Qureshi said he has ordered 100 small electric cars from China and plans to import 100 more every month after that.

Pakistanis - like many other people around the world - have historically been reluctant to switch to electric vehicles for reasons ranging from higher costs to lack of charging infrastructure and "fear of the unknown", said Ayaz at the EDB.

The tax cuts help remove the cost obstacle, he said - and could help create about 20,000 new jobs in the auto industry as Pakistani car companies start manufacturing electric cars, he predicted.

The charging infrastructure issue remains, though some companies have already established charging stations in big cities and along motorways.

Climate change and development expert Ali Tauqeer Sheikh said the government should encourage the private sector to install more charging stations near offices, homes and parking lots.

To overcome worries that electric vehicles may have no resale value, car manufacturers and dealers could offer buy-back guarantees, he added.

But, Sheikh said, simply selling more electric cars is not enough to tackle Pakistan's emissions and air pollution, since the total number of vehicles being sold - mainly traditional cars - is still growing every year.

He said the government needs to push to completely phase out fuel-run and hybrid vehicles by increasing taxes on them and provide affordable bank loans for people looking to buy electric.

"Poor people who use motorbikes and rickshaws deserve to have more electric vehicles on the roads to cut air pollution," he said.

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