Pakistani auto industry, currently dominated by Japanese automakers building ICE (Internal Combustion Engine) vehicles, is expected to be transformed with the arrival of Chinese new energy vehicles (NEV) manufacturers. Beyond Your Dreams (BYD), Chang'an, Great Wall Motors (GWM) and Shanghai Automotive Industry Corporation (SAIC) are planning to build plants in Pakistan. Coming on the heels of the ongoing solar revolution in the country, these new EV entrants are helping accelerate Pakistan's transition to clean energy. These auto plants also create an opportunity for Pakistan to become a significant exporter of electric vehicles to developing nations.
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| BYD EV. Source: CNBC |
BYD, operating in Pakistan through a partnership with Mega Motor Company (a subsidiary of Hubco), has started building a $150 million assembly plant in Gharo, Sindh. Its initial target is to produce 25,000 units annually, with the capacity to scale up to 50,000 units a year. It is expected to launch in the second half of 2026, with equipment installation and final commissioning currently underway. It plans to produce four models, ranging from entry-level plug-in hybrid Atto-2 to higher-end all-electric Seal and Sea-lion 7 Sedan and SUV.
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| Chinese EV Factories Overseas. Source: The Economist |
Great Wall Motors is partnering with local manufacturing giant Sazgar Engineering. It is expanding its capacity to produce up to 54,000 SUVs and New Energy Vehicles (NEVs) annually.
SAIC's factory located in Lahore is engineered for an operational capacity of roughly 25,000 to 30,000 vehicles per year. SAIC’s MG brand was an early mover, transitioning from completely built imports to local CKD assembly lines. They are actively producing and expanding locally assembled variants, particularly focusing on their plugin-in hybrid crossover lineup to gain market share.
Chinese automakers currently account for 20% of all auto sales in Pakistan while Japanese automakers Suzuki, Toyota, and Honda hold most of the remaining 80% market share. Kamran Kamal, a BYD Pakistan executive, has told Pakistani media that the new energy vehicles Chinese automakers are betting on will make up as much as 50% of passenger vehicles sold in Pakistan by 2030.
The ongoing solar revolution and new energy vehicles (NEV) boom in Pakistan will help reduce energy imports, improve energy security and mitigate the impact of climate change. Pakistan government policies should fully support this consumer-led movement toward the country's energy independence.
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18 comments:
- "These auto plants also create an opportunity for Pakistan to become a significant exporter of electric vehicles to developing nations."
I doubt it. Most of these cars are simply being assembled from CKD kits imported from China. Why would Chinese manufacturers depend on Pakistani assembly plants to export their cars when they can do it directly from China? Japanese, Korean and European car manufacturers have used their Indian plants for exports due to lower costs of production, high localization and the economies of scale that come with a large domestic market. Pakistan at present seemingly lacks both a large domestic market as well as a developed auto parts supply ecosystem.
Assembly from imported CKD kits without localisation of parts would generate some local jobs but will not develop the Pakistani auto industry (and CKD assembly will drain forex reserves just as CBU imports would). Maybe Pakistan's car market is at present too small for car makers to justify investments in localization. But it seems to be a chicken and egg problem for them. Pakistan's car market is too small due to high prices of new cars resulting from low levels of localization. (Apparently, even a Pak Suzuki Alto costs as much or more than a midsize SUV model in India even taking into account the currency exchange rates.) And unless companies invest in localization the prices aren't going to come down. But companies seem hesitant to do it since the market size is too small to justify the investment.
Vineeth: “Pakistan at present seemingly lacks both a large domestic market as well as a developed auto parts supply ecosystem”
Pakistani automakers can sell domestically all they can make with good profit margins today. There is no pressure for them to export.
What Pakistan lacks today is sufficient investment in exportable surplus capacity and policy incentives to boost auto exports.It can be changed, and most likely will be changed.
A new policy is already being proposed. We’ll just have to wait and see how effective it proves to be.
https://www.techjuice.pk/pakistan-auto-policy-sets-higher-car-export-targets/
Under the proposed policy, car manufacturers would be required to increase exports from 4% during 2026–27 to 20% by 2030–31. The export target for auto parts manufacturers would also increase from 5% to 15%.
The new policy aims to integrate Pakistan’s auto parts manufacturers into global supply chains and increase the country’s automotive exports.
To support this objective, the government has proposed a Duty and Tax Remission for Exporters (DTRE) scheme and the establishment of an Auto Parts Export Council.
The policy also includes measures aimed at encouraging local manufacturing and improving the competitiveness of Pakistan’s automobile industry in international markets.
The draft policy proposes several incentives for electric vehicles (EVs), including exemptions from federal excise duty, capital value tax, and withholding tax.
It also recommends reducing the customs duty on equipment used for EV charging stations to 1%.
The proposed financing limit for electric vehicles would be increased to Rs. 10 million, while the maximum loan repayment period would be extended from three to five years.
Electric vehicles, plug-in hybrid electric vehicles, and range-extended electric vehicles would receive equal treatment under the proposed framework.
The government has also proposed reducing customs duties on conventional vehicles by up to 80% over the next five years.
The measure is intended to help reduce vehicle prices while encouraging consumers to shift toward more fuel-efficient and environmentally friendly vehicles.
The draft policy also proposes stronger consumer protection measures. Manufacturers would be responsible for any increase in vehicle prices after a customer has completed the booking process.
Customers would also have to receive a confirmed delivery date at the time of booking.
The proposed framework sets out six key principles for vehicle manufacturers and introduces both penalties and incentives linked to performance.
Companies that fail to meet specified performance targets could face penalties, while manufacturers achieving their targets would be eligible for incentives.
The draft Auto Policy will be discussed with the International Monetary Fund (IMF) through online consultations and during the upcoming economic review before it is finalized and approved.
The government expects the policy to support exports, strengthen local auto parts manufacturing, promote electric vehicles, and improve affordability and consumer protection in Pakistan’s automobile market.
- "Pakistani automakers can sell domestically all they can make with good profit margins today. There is no pressure for them to export. What Pakistan lacks today is sufficient investment in exportable surplus capacity and policy incentives to boost auto exports."
I do not think there was any 'pressure' on Indian manufacturers to export either. Companies which established plants in India to cater to domestic demand found exports from here profitable as well due to the large parts supplier base and the economies of scale that came with manufacturing for the large domestic market.
- "The new policy aims to integrate Pakistan’s auto parts manufacturers into global supply chains and increase the country’s automotive exports.. The policy also includes measures aimed at encouraging local manufacturing and improving the competitiveness of Pakistan’s automobile industry in international markets."
These are worthy aims no doubt, but I'm not sure it would be as simple as announcing a policy, fixing export targets and then have everything fall into place magically for local manufacturing and exports. A credible component supplier ecosystem that can meet localization targets and necessary export-quality standards take time to develop, and economies of scale that come through a larger market is vital. It worked in India due to its large domestic market, and in Thailand and Indonesia due to their integration into the ASEAN market. Pakistan would probably need to get preferential access to some large market to become a successful auto exporter.
That said, Pakistan does have one advantage vis-a-vis India with regard to manufacturing and export of Chinese EVs, and that is the near absence of Chinese auto brands in the Indian market due to govt restrictions. However the question still is whether the Chinese themselves have any incentive to invest in localization and export of its cars or two-wheelers from Pakistan. Does it make any economic sense for them when they can do the same directly from their highly automated factories in China making use of their vast supplier base? Chinese have surplus production capacity at home. They would prefer to establish assembly facilities in target markets where the CKD kits are imported from China and bolted together, as it is almost as good as exporting a CBU from their perspective. Whether a change in auto policy would be enough to induce them to source the parts locally in Pakistan and export assembled products from there remains to be seen.
- "Electric vehicles, plug-in hybrid electric vehicles, and range-extended electric vehicles would receive equal treatment under the proposed framework."
I have no idea why battery electric vehicles and hybrids should receive equal treatment as the latter still make use of fossil fuels.
Incidentally, there was an editorial in DAWN on the same.
"Flawed NEV incentive"
https://www.dawn.com/news/2029306
- "The government has also proposed reducing customs duties on conventional vehicles by up to 80% over the next five years."
Good news for the buyer perhaps, but probably bad news for the local industry. If they were to slash the import duties of vehicles too aggressively, there wouldn't much of price difference between the imports and locally assembled vehicles. Where's the economic incentive for local assembly and parts production then?
Vineeth: “Good news for the buyer perhaps, but probably bad news for the local industry. If they were to slash the import duties of vehicles too aggressively, there wouldn't much of price difference between the imports and locally assembled vehicles. Where's the economic incentive for local assembly and parts production then?”
This policy is only for ICE powered vehicle makers like Suzuki, Honda and Toyota, who have enjoyed a long period of protection and failed to deliver. It’s time for them to compete on their own.
Only the new energy vehicle makers of EVs and PHEVs who are being incentivized now. It’ll also help accelerate transition to clean energy.
- "This policy is only for ICE powered vehicle makers like Suzuki, Honda and Toyota, who have enjoyed a long period of protection and failed to deliver. It’s time for them to compete on their own."
Competition is alright, but I was looking at this from the perspective of a local parts supplier. If the Pakistani authorities were to reduce import duties for ICE vehicles to the point that price of CBU imports comes close to locally assembled equivalents, there would be little incentive for a car maker to invest in local assembly or manufacturing. This would adversely affect the local auto parts suppliers due to the fall in demand and could put many of them out of business. This could in turn impact localization plans for EVs as well.
As for 'legacy' manufacturers like Suzuki, Honda or Toyota "failing to deliver" on localization or lowering prices, the reasons could be more complex than that. These very same Japanese (and Korean) brands operating in Pakistan have manufacturing plants in India where they make cars with high levels of local input and export them. Why haven't they done the same in Pakistan? Or take the case of the two-wheeler markets in both countries. Honda, Suzuki and Yamaha manufacture and sell more modern and diverse models in Indian market than they do in Pakistan. What could be the reason for this?
Just as in the case of Pakistan, these Japanese motorcycle brands entered the Indian market in the 1980s by collaborating with local partners to sell 100cc commuter motorcycles. So we had Hero-Honda, Escorts-Yamaha, TVS-Suzuki and Bajaj-Kawasaki. Later when the Indian govt further liberalized the economy by allowing greater FDI and foreign ownership in auto sector, these partnerships were dissolved and companies parted aways. Honda, Suzuki, Yamaha (and later Kawasaki) started independent operations while their former local partners TVS, Bajaj and Hero too positioned themselves as independent manufacturers.
So comparing the examples of the same Japanese brands operating in Indian and Pakistani auto sectors, what could be the real reason for their relatively higher prices, lower localization and lack of modern products in the Pakistani market? Is the culprit really these Japanese brands, their local partners, flawed government policy, or are there fundamental constraints in the market itself?
As it stands, the Pakistani market is quite small in comparison to India. For every motorcycle sold in Pakistan, 10 are sold in India. For every car sold in Pakistan, 20 are sold in India. Like the "chicken and egg" conundrum I mentioned earlier, is it the low sales volumes that is discouraging companies from investing in greater localization and introducing more modern products at affordable prices, or is it the lack of effort from manufacturers to localize and lower prices that is preventing the market from growing?
Riaz Sb., this is interesting.
However considering that electricity in Pakistan is not very inexpensive how is the public going to react?
Also, any idea about the market of electric two wheelers in Pakistan?
Thanks.
Anon:” electricity in Pakistan is not very inexpensive …..Also, any idea about the market of electric two wheelers in Pakistan?”
I think people are installing solar at a rapid pace to generate their own cheap electricity. Cost per mile driven turns out to be a lot cheaper than comparable ICE ( internationally combustion engine ) powered vehicles.
The two wheeler and three wheeler market is growing very rapidly as well. Here’s recent news story on it:
Soaring costs drive Pakistan to EVs
About 40% of Pakistan's petrol is used to fuel 30m two-wheelers and three-wheeled rickshaws
https://tribune.com.pk/story/2601792/soaring-costs-drive-pakistan-to-evs
ISLAMABAD:
Days after Iran effectively blocked shipping through the Strait of Hormuz following the start of US and Israeli attacks in late February, two Pakistani electric motorbike outlets 1,400 km (875 miles) away found themselves overwhelmed with enquiries.
Haseeb Bhatti, who retrofits petrol-fuelled bikes with battery-powered motors in the northern city of Rawalpindi, said his March sales surged 70%. For Ali Gohar Khan, who owns a 7-year-old electric motorbike retail franchise with branches across Pakistan, the recent surge in sales is the steepest ever.
"People have this fear that maybe in the near future, they might not get petrol at all," Khan said.
The Middle East crisis has sent global fuel prices soaring, compounding pain for Pakistanis already hit by inflation and a post-pandemic economic downturn. As the nation imports nearly all its oil through the Strait of Hormuz, shortage rumours took hold despite the government's supply assurances.
About 40% of Pakistan's petrol is used to fuel the 30 million two-wheelers and three-wheeled autorickshaws that dominate roads in a country where cars are a luxury and public transport is inadequate.
Industry officials and analysts expect the crisis to supercharge an EV rush in Pakistan, which would stand out from a broader regional surge for the availability of cheap and plentiful solar power to charge e-bikes. A switch would also help lower oil imports and bolster foreign exchange reserves, and slash emissions in the world's most polluted country in 2025.
After the government's 18% price hike last week, a Pakistani household earning the median wage now pays 31% of its daily income for a litre of petrol - more than all but 22 of 139 countries tracked by globalpetrolprices.com and Our World in Data.
"My monthly salary is Rs30,000. I can barely cover expenses for my family of six with this. How am I supposed to fill my bike?" said Zahoor Ahmed, a security guard in the southern city of Karachi.
From working professionals to college students, more riders have been turning to EVs in recent months. Last year, higher petrol prices drove up EV sales nearly three-fold to 90,000 units or 5% of all two-wheelers sold, data from consultancy Renewables First showed.
This year, EVs have accounted for more than 10% of monthly two-wheeler sales for the first time, said Talha Khan, CEO at EV logistics planning company Orko, a transition he expects to accelerate as filling up with conventional fuel can be as much as 10 times more costly than charging.
"Keeping inflation and fuel prices in mind, I took matters in my own hands and bought an electric scooter," said Mehvish Qureshi, a lawyer in southern Hyderabad.
- "This year, EVs have accounted for more than 10% of monthly two-wheeler sales for the first time.."
Coincidentally, the Indian market too has seen a very similar growth story of E2W sales with their share averaging between 10-11% among total two-wheeler sales in recent months.
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https://www.autocarindia.com/industry-amp/two-wheeler-retail-sales-up-197-percent-in-august-440670
"EVs accounted for 10.68 percent of total two-wheeler retail sales in August, up from 7.66 percent a year ago."
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However, this growth in EVfication has so far been largely confined to the scooter segment where nearly 22% (or more than 1-in-5) of the scooters sold in the market are now electric, even as the buyers of 'conventional' motorcycles remain lukewarm to the idea of 'e-motorcycles' (or 'e-bikes').
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https://www.autocarpro.in/analysis-sales/scooter-industry-sells-record-855175-units-in-august-honda-back-on-top-after-losing-to-tvs-in-july-134732?amp=1
"E-scooter wholesales, at 188,714 units (up 131% YoY) also posted a new high in monthly penetration level: 22 percent."
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Scooters constitute nearly half of all two-wheeler sales in India, and the general usage patterns of scooters makes it particularly suitable for electrification. The traditional ICE scooter buyer demographic here is mostly urban including a high proportion of females and elder riders whose typical daily rides are confined to grocery runs, commute to colleges or office, or trips to drop off or pick up kids from school etc - all within a limited area. Therefore the 'range anxiety' generally associated with EVs isn't a matter of concern for them, and the convenience of charging the 'e-scooters' at home is an added attraction.
On the other hand, the buyers of conventional motorcycles in India (which constitute the other half of its two-wheeler sales) is predominantly urban and rural male buyers who often do commutes over longer distances (often on poor or even non-existent roads where the larger wheels of motorcycles provide greater stability than scooters), and therefore the range limitations and charging times of 'e-motorcycles' is a significant dampener. Also, for many there is a traditional 'masculine' appeal associated with the conventional motorcycles with their gear-shifts and exhaust note, which they wouldn't get on an 'e-motorcycle'. This is especially so for the sizeable chunk of 'aspirational' buyers who go for more premium and sporty offerings than the 100-110cc commuters.
Consequently, though there are 'e-motorcycles' on sale in the Indian market by a few startups (including some premium/sporty offerings) they haven't managed to attract much sales unlike their 'e-scooter' counterparts. Fuel prices have largely remained stable in India during the last few years. So there isn't yet a significant 'push' factor for riders of conventional motorcycles to jump to EVs either. Perhaps the situation in Pakistan could be different.
Pakistan is shifting from traditional lead-acid battery manufacturing toward domestic lithium-ion (Li-ion) assembly and production, driven by a massive surge in solar energy adoption and electric vehicle (EV) demand.Current State and New Production FacilitiesFirst Lithium-Ion Plant: Karachi-based engineering firm EV Technologies is launching Pakistan's first local Li-ion battery manufacturing plant in the Korangi Industrial Area.Initial Output: The facility features an initial production capacity of 4 megawatts (MW), designed to supply roughly 2,000 e-bike and e-scooter batteries per month.Traditional & Dry Battery Sector: Established players like Exide Pakistan Limited, Atlas Battery, and Treet Corporation (maker of Daewoo batteries) dominate conventional lead-acid and backup markets, while Treet and others are expanding into Li-ion integration.Policy Framework and Localization GoalsBattery Manufacturing Policy (2026–31): The government advanced a comprehensive roadmap via the Engineering Development Board (EDB) to incentivize local production over importing completely built-up (CBU) battery packs.Tax and Tariff Incentives: The framework proposes reduced sales taxes for local producers, accelerated depreciation for capital investments, and protective duties on finished imported batteries. Raw materials for Li-ion assembly currently face zero import tax, compared to a 12% tax on fully assembled units.Value Addition Targets: The policy aims for an ambitious localization path targeting 70% domestic value addition initially, scaling up to 80% over time, focusing heavily on safer and cost-effective Lithium Iron Phosphate (LFP) chemistry.International PartnershipsChinese Investment: Pakistan is actively partnering with Chinese companies to bridge technological gaps in cell manufacturing and energy storage systems (BESS).Key Agreements: China's Dongjin Group announced a $15 million dry battery plant investment in Faisalabad, and the Saigol Group signed a strategic memorandum of understanding (MoU) with China's Hebei Juhang Energy Technology Group for advanced Li-ion and EV infrastructure collaboration. Discussions have also involved top global EV battery makers like CATL.
Pakistan's auto policy likely to reignite WTO dispute with Japan
Strict targets on exports remain, with Chinese makers set to benefit, say experts
https://asia.nikkei.com/business/automobiles/pakistan-s-auto-policy-likely-to-reignite-wto-dispute-with-japan
ISLAMABAD -- Pakistan's updated auto policy is likely to provoke Japanese automakers because it retains rules that Tokyo has already raised at the World Trade Organization and links vehicle manufacturers' export performance to licensing and concessions on imported vehicle parts.
Prime Minister Shehbaz Sharif approved the Automotive Industry Development Policy (AIDP) 2026-31 on Sept. 9. The policy will take effect once cabinet approves it.
While details haven't been officially announced, multiple government officials told Nikkei Asia in background briefings that the new policy sets "a 12% export target" for auto manufacturers, meaning an automaker must export 12% of the total value of vehicles manufactured in the country in 2031 after gradually increasing the figure from the current 10% level. Failing to achieve the export target will result in customs penalties and possible license cancellation.
The policy also targets $4.6 billion in combined vehicle and auto-parts exports and incentivizes domestic assembly of new-energy vehicles.
The previous AIDP, which expired on June 30, had a 10% export target in the final year and linked automakers' export performance to licensing and import concessions.
Pakistan's new auto policy will likely lead to a trade dispute with Japan, as Suzuki Motor, Toyota Motor and Honda Motor dominate Pakistan's auto market, accounting for 75% of the country's annual passenger vehicle sales.
Indus Motor (IMC), Toyota's local assembler in Pakistan, faces a $265 million potential liability in the form of additional customs duty for allegedly failing to meet export targets over the last four years. The company challenged the policy in a local court, which has frozen collection of the penalty.
At a 2024 WTO meeting, Japan raised concerns that Pakistan's auto export targets should not be a condition for either tariff reductions or import licenses, as they violate international trade rules.
"Japan understands that Pakistan's [AIDP] is scheduled to be revised in July 2026. Japan hopes that the revision will be consistent with the WTO Agreement, including the issue of the manufacturing license," Japan stated during a WTO meeting in April this year. Pakistan, meanwhile, has rejected Japan's allegations at the WTO, claiming its export conditions are WTO-compliant.
Sheryar Qadir, senior vice chairman of the Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM), said that Japan had formally warned Pakistan that it could pursue WTO action over mandated vehicle exports imposed on manufacturers.
The AIDP for 2026-31 "is following almost the same template" of other countries' policies "that [have] already been successfully challenged" at the WTO, said Qadir. "Given that history, the legal risks persist" for Pakistan, he said.
Industry insiders said that the new auto policy favors Chinese auto manufacturers.
"Investment incentives tilt toward Chinese [new energy vehicle] entrants, who face a lighter compliance bar and heavier fiscal sweeteners. At the same time, Japanese incumbents face compounding pressure in the form of export mandates and [tighter compliance]," Qadir said.
Aamir Allahwala, CEO of Tecno Auto Glass, a glass manufacturer for carmakers, told Nikkei Asia that Japanese vehicles produced in Pakistan use up to 65% local parts by value and buy $720 million worth of locally produced parts.
"Korean cars have 20-25% local parts, and Chinese cars have near 0% local parts," he said.
A government official privy to the trade developments told Nikkei Asia that the new auto policy "in no way discriminates against auto manufacturers of any country. It merely promotes exports in the auto sector, which have failed to grow over the years."
Pakistan's auto policy likely to reignite WTO dispute with Japan
Strict targets on exports remain, with Chinese makers set to benefit, say experts
https://asia.nikkei.com/business/automobiles/pakistan-s-auto-policy-likely-to-reignite-wto-dispute-with-japan
Aamir Allahwala, CEO of Tecno Auto Glass, a glass manufacturer for carmakers, told Nikkei Asia that Japanese vehicles produced in Pakistan use up to 65% local parts by value and buy $720 million worth of locally produced parts.
"Korean cars have 20-25% local parts, and Chinese cars have near 0% local parts," he said.
A government official privy to the trade developments told Nikkei Asia that the new auto policy "in no way discriminates against auto manufacturers of any country. It merely promotes exports in the auto sector, which have failed to grow over the years."
Industry insiders and auto-sector experts consider the export targets under AIDP 2026-31 to be ambitious.
Noman Ahmed Said, a technology industry expert based in Karachi, said that setting ambitious targets alone will not increase exports.
"Manufacturing costs in Pakistan are high, financing is expensive, and our domestic volumes are still relatively small. If we want exports, we first have to make our industry competitive," Said said.
Pakistan's Minister for Commerce and separately a spokesperson for the Engineering Development Board, the auto industry's regulator, did not respond to a request for comment.
"[Pakistan] certainly needs to encourage exports, but the better way is to make Pakistani manufacturing competitive enough that companies want to export from here rather than forcing exports through import restrictions," said Allahwala, the glass manufacturer.
- "Pakistan's new auto policy will likely lead to a trade dispute with Japan, as Suzuki Motor, Toyota Motor and Honda Motor dominate Pakistan's auto market, accounting for 75% of the country's annual passenger vehicle sales."
There is one thing that can be said for sure about these Japanese automakers - they seem to show very little interest in bringing EVs to the market. This is glaringly obvious in India where Suzuki is the largest car maker and Honda is the second largest two-wheeler seller, and yet the presence of these two Japanese brands (and their compatriots like Yamaha and Toyota) in EV space is miniscule at best in comparison to domestic Indian brands. This is despite the fact that India is currently perhaps one of the few large auto markets where the Japanese can operate free from the competition of Chinese EV brands that is taking over the rest of the world.
https://www.autocarindia.com/industry-amp/electric-two-wheeler-sales-fall-11-percent-in-august-after-record-july-440699
https://www.autocarindia.com/industry-amp/august-ev-sales-vinfast-takes-fourth-spot-from-maruti-suzuki-440641
They were on a 'wait and watch' mode when Indian brands introduced EV models, and when the Japanese finally did make the move it was clearly a half-hearted attempt at best with models that were overpriced for what they offered in terms of range and other features compared to domestic competitors. It isn't that Indian EV market is too small for them to make financial sense in investing either. It is rapidly growing and is already witnessing sustained sales of nearly 2 lakh e-2W and 30,000 e-Cars per month - most of which are Indian brands. But the Japs just don't seem interested.
Vineeth: “There is one thing that can be said for sure about these Japanese automakers - they seem to show very little interest in bringing EVs to the market”
Established players in a market, aka incumbents, are always so slow to change, hoping to defend their turf and market share. This creates an opportunity for new player (insurgents) to gain ground,
This dynamic has already allowed China to surpass as the world’s biggest auto exporter. China exported 7.09 million exported units in 2025 and surpassing Japan
Chinese carmakers, led by BYD and Chery, are reshaping the global auto export market. Vehicle shipments hit record levels in 2024–2025, with EVs accounting for 40% of exports.
Data compiled by McKinsey shows that back in 2019, Japan was the biggest global vehicle exporter, with 4.8m units exported. At this point China exported only around 700,000 vehicles. Fast forward to 2024 and China had become by some distance the world’s largest exporter, with 5.5m units. Forecasts released in July 2025 suggested that Chinese exports could exceed 7m units this year. Japan’s exports by contrast had fallen to 4.2m in 2024.
https://www.automotivemanufacturingsolutions.com/strategy/china-overtakes-japan-as-global-vehicle-export-leader/2621926
Li Zexin 李泽欣
@XH_Lee23
Pakistan switches to BYD police cars. Islamabad police show off their new electric patrol fleet.
https://x.com/XH_Lee23/status/2104566031859794255?s=20
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Pakistan: Islamabad police force acquires 50 electric cars
https://www.electrive.com/2026/09/19/pakistan-islamabad-police-force-acquires-50-electric-cars/
At an event held on 8 September, Pakistani PM Shehbaz Sharif handed over the keys to the new electric police cars to Mohsin Naqvi, the Federal Minister for Interior, and Syed Ali Nasir Rizvi, the Inspector General of Islamabad Police. Several other senior government officials also attended the ceremony.
Briefing the prime minister and other dignitaries at the ceremony, Rizvi said the 50 electric police cars will save approximately 34 million Pakistani rupees (~€107,000 euros) per month in fuel costs and that these savings will recover the cost of each car in about ten and a half months. The new EV fleet serves Islamabad Police’s newly established Capital Patrol force, which will comprise 200 police personnel.
Islamabad Police expects the inclusion of EVs in its fleet to reduce response time and make field operations even faster and more effective. All 50 newly acquired vehicles are BYD’s Atto 2 sub-compact SUVs. The Chinese automaker offers the Atto 2 in the country in only one configuration, priced at 7.29 million Pakistani rupees (~€22,900 euros).
A front-mounted permanent magnet synchronous motor produces 130 kW and 290 Nm of torque. It draws energy from a 45.12 kWh LFP battery pack that can be charged from 30 per cent to 80 per cent SoC in 30 minutes. This setup allows the Atto 2 to reach 0 to 100 kph in 7.9 seconds and travel up to 380 km on a single charge, as per NEDC.
Mega Motor Company, BYD’s official partner in Pakistan and an associated company of local power generation company Hub Power Company, is setting up a local assembly plant for the Chinese automaker’s new energy vehicles. Located in Gharo, Sindh, this factory is scheduled to commence operations by the end of 2026. The Atto 2, being BYD’s most affordable model in the country, could be a strong candidate for local assembly from day one.
Pakistan's EV Boom: Local Battery Manufacturing Takes Off in 2026
Pakistan transitions from importing electric vehicles to localized EV assembly and Battery Energy Storage System (BESS) manufacturing in 2026.
https://nextgen.pk/news/pakistan-ev-battery-manufacturing-2026
The electric vehicle (EV) sector in Pakistan has officially entered its most crucial phase to date. As of August 2026, the industry is aggressively transitioning from relying on expensive Complete Built-Up (CBU) imports to establishing a robust, localized manufacturing footprint.
With soaring fuel prices and the massive adoption of distributed solar energy across the country, the demand for high-capacity batteries and electric mobility has never been higher.
BYD and the Local Assembly Push
The biggest headline of the year is the entry of global EV titan BYD. Partnering with Mega Motor Company (a subsidiary of the Hub Power Company), BYD has rapidly constructed a state-of-the-art manufacturing plant near Karachi. The facility is expected to roll out its first locally assembled vehicles shortly, with a projected capacity of 25,000 units annually.
However, the conversation in 2026 has shifted from mere “assembly” to true localization. Local auto parts manufacturers are actively lobbying under the new Auto Policy 2026–2031 to ensure that foreign EV entrants transfer technology and utilize the local supply chain rather than simply assembling imported kits.
The Push for Indigenous Battery Manufacturing
The most significant technological leap is the government’s new policy framework targeting the indigenous manufacturing of Battery Energy Storage Systems (BESS).
Currently, many local ventures are engaged in “battery assembly”—importing raw electrochemical cells from China and packaging them locally. The new push aims to establish upstream cell manufacturing right here in Pakistan. Companies like Zilo Energy and EV Technologies are pioneering efforts to manufacture LFP (Lithium Iron Phosphate) and Lithium-ion battery systems specifically optimized for Pakistan’s climate and energy grid.
Smart Vehicles Require Smart Infrastructure
It is important to remember that modern electric vehicles are essentially supercomputers on wheels. Every EV constantly transmits gigabytes of telemetry data, battery health diagnostics, and GPS mapping information back to central servers via Battery Management Systems (BMS).
This massive influx of real-time data cannot be effectively managed on cheap offshore hosting.
Hosting the Mobility Revolution
For the EV startups, charging station networks, and smart-manufacturing plants springing up across Pakistan, enterprise IT infrastructure is critical.
Nextgen Hosting’s Dedicated Servers provide the raw compute power and localized edge-networking required to process real-time telemetry from thousands of vehicles simultaneously. By utilizing Nextgen’s KVM VPS infrastructure, local EV software developers can deploy scalable fleet management APIs and charging station locator apps with sub-millisecond latency. Ensuring this data is hosted locally not only improves performance but guarantees compliance with emerging data sovereignty laws.
The Road Ahead
The government’s long-term target remains ambitious: 30% of all new vehicle sales must be electric by 2030. While challenges remain in establishing a fully indigenous lithium supply chain, the massive investments currently pouring into local battery manufacturing plants suggest that Pakistan’s clean energy revolution is finally shifting into high gear.
Pakistan provides fuel aid to over 9 million low-income people as Middle East war drives up prices - myMotherLode.com
Petroleum Minister Ali Pervaiz Malik said more than 9 million people are benefiting from the program, in which eligible motorists receive a token by text message and present it at a participating gas station, where staff verify their eligibility before applying the discount.
https://mymotherlode.com/news/asia/11198697/pakistan-provides-fuel-aid-to-over-9-million-low-income-people-as-middle-east-war-drives-up-prices.html
ISLAMABAD (AP) — Pakistan’s government has provided fuel subsidies to more than 9 million low-income people as the U.S.-Iran war drives up energy prices, officials said Tuesday.
Information Technology Minister Shaza Fatima Khawaja said the program was designed to ease the burden on millions of people as regional geopolitical tensions drove up global fuel prices.
“We have ensured the process remains seamless and agile for citizens,” Khawaja said, describing it as Pakistan’s first nationwide use of technology to deliver targeted fuel subsidies.
Rising petrol and diesel prices have added pressure on a cash-strapped nation already grappling with high inflation, pushing up transportation, food and other living costs and raising fears of anti-government protests.
The program, approved by Prime Minister Shehbaz Sharif last month, offers fuel discounts to eligible motorcycle riders, rickshaw operators and owners of small cars, many of whom depend on their vehicles for work and daily travel.
The subsidies were announced after Jamaat-e-Islami, Pakistan’s major Islamist political party, threatened to march on Islamabad to pressure the government to cut taxes on petrol and diesel.
Fuel prices in Pakistan have risen by more than 50% since the war between the United States and Iran began earlier this year, adding to pressure on households already struggling with the cost of living. Sharif’s government says the subsidies are intended to help low-income motorists buy gasoline at prewar prices.
Petroleum Minister Ali Pervaiz Malik said more than 9 million people are benefiting from the program, in which eligible motorists receive a token by text message and present it at a participating gas station, where staff verify their eligibility before applying the discount.
According to the Ministry of Information Technology and Telecommunication, the amount and frequency of assistance vary by vehicle type. Motorcycle and three-wheeler users qualify for a discount of 500 rupees ($1.79) a week, with a limit of four tokens a month. That brings their maximum monthly assistance to 2,000 rupees ($7.14).
Owners of cars with engines of up to 800 cubic centimeters are eligible for a discount of 100 rupees (36 cents) per liter on up to 10 liters of gasoline (2.6 gallons) every 10 days. They can receive three tokens a month, saving up to 3,000 rupees ($10.71).
Amir Shahzad, an Islamabad resident, said the subsidy was enough to cover his commute between home and work. However, he added, “if I need to travel to another city, I will have to purchase petrol at the prevailing market price.”
Pakistan relies heavily on loans from the International Monetary Fund, which wants Islamabad to slash subsidies on wheat and other items.
Faseeh Mangi
@FaseehMangi
Pakistan expects to reach its 30% EV adoption target ahead of schedule as surging oil prices make switching away increasingly attractive
Sales of electric motorcycles and scooters have tripled from a year earlier and electric-car sales have doubled
https://x.com/FaseehMangi/status/2108121762827542696?s=20
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Pakistan Says Middle East Oil Shock Is Accelerating EV Shift
https://www.bloomberg.com/news/articles/2026-10-08/pakistan-says-middle-east-oil-shock-is-accelerating-ev-shift?taid=6ac742fdc6ee1a0001aba7ea&utm_campaign=trueanthem&utm_content=business&utm_medium=social&utm_source=twitter
Pakistan expects to reach its electric-vehicle adoption target ahead of schedule as surging oil prices make switching away from gasoline-powered cars increasingly attractive, according to a senior government official.
The government aims for EVs to account for 30% of new vehicle sales by 2030 under a policy announced last year. The jump in fuel costs since the Middle East conflict has shortened the time it takes for buyers to recoup the higher upfront cost of an EV, said Haroon Akhtar, adviser to the prime minister on industries and production.
“I feel that the target we had set in our electric-vehicle policy last year, we will achieve it much earlier as rise in oil prices has brought cost recovery of EV to one to one and a half year,” adviser to Prime Minister on Industries and Production Haroon Akhtar told Bloomberg in Islamabad.
“People are realizing the benefit now. You don’t have to pay for petrol,” he said.
Since the Middle East war started in February, petrol and diesel prices have jumped 54% and 43% respectively, according to data available on Pakistan State Oil Company Ltd.
While Pakistan has every incentive to push ahead, along with other major oil and fuel importers, factors like vehicle cost and charging infrastructure mean a large-scale transformation of the country’s fleet and oil-consumption needs is years away.
Still, even a modest shift could have wider economic benefits. Petroleum accounted for almost a quarter of Pakistan’s total imports, at $16.9 billion in the year through June 2026 according to the Pakistan Bureau of Statistics. Higher oil prices can therefore worsen the trade deficit and add pressure on the currency and inflation.
The South Asian nation is also preparing a new auto policy that could be presented to the cabinet within the next two weeks. The government is considering tax incentives for EVs to narrow their price gap with conventional vehicles, Akhtar said.
The policy has been under discussion since earlier this year but was delayed by negotiations over tariffs and export requirements. The draft is now with Law Minister Azam Nazeer Tarar, who will incorporate the latest recommendations, according to Akhtar.
Akhtar said demand is already accelerating, with sales of electric motorcycles and scooters tripling from a year earlier and electric-car sales doubling. Industry-wide EV sales data aren’t publicly available.
“This is an impact of the Middle East conflict as fuel prices have gone up,” Akhtar said.
Geely enters Pakistan
https://www.nation.com.pk/16-Sep-2026/geely-s-pakistan-entry-long-term-commitment-bestway-group-md
LAHORE - Bestway Automotive Private Limited (BAL), the first and only authorised distributor and official representative of Geely Auto in Pakistan, hosted a media meet in Lahore on Tuesday to introduce Geely, outline its plans for Pakistan and highlight Bestway’s long-term commitment to the country’s automotive and new-energy mobility ecosystem.
The media interaction, held ahead of Geely’s upcoming market launch, brought together media for a discussion on the partnership, Geely’s global position, its technology and safety capabilities, and Bestway Automotive’s plans for Pakistan. Muhammad Irfan Anwar Sheikh, Group Managing Director of Bestway Group’s non-banking businesses in Pakistan, said that the partnership reflects the strength and long-term investment strategy of Bestway Group, which has built a substantial presence in Pakistan across multiple sectors, including cement, banking, insurance, packaging, renewable technology and consultancy.
“For us, this partnership is a long-term commitment to Pakistan. Bestway Group has been investing in and building businesses here for decades, across sectors including cement and banking, and that experience and track record provide reassurance to our stakeholders, partners and customers that we are here to build for the long term. With Geely, we are bringing together that local strength and experience with the technology, safety and global capabilities of a major automotive manufacturer,” Sheikh said. The partnership will initially see Geely vehicles introduced as Completely Built Units (CBUs), with bookings set to open before the end of 2026, with Bestway Automotive planning local assembly at an existing state-of-the-art CKD facility recently acquired by the Company.
Geely brings extensive global experience across new-energy and internal combustion engine vehicles, intelligent mobility and automotive engineering, with a focus on advanced mobility technologies, connectivity and modern features, supported by one of the world’s largest and most comprehensive automotive safety testing facilities. The automotive brands owned, controlled, or strategically invested in by Geely include iconic brands such as Volvo, Lotus, Aston Martin, Smart, Zeekr and Lynk & Co alongside Proton, Polestar, LEVC (the iconic London electric black cab), Livan Automotive, Farizon Auto, Radar Auto (Riddara) and motorcycle brands (Benelli, QJMotor, and Keeway). The company sold more than 3.02 million vehicles globally in 2025, including 1.69 million NEVs, while its international network covered 88 countries and regions with more than 1,200 outlets by year-end.
The leadership of Bestway Group includes Sir Anwar Pervez OBE H Pk, Founder & Chairman Emeritus, Bestway Group, and Lord Zameer Mohammed Choudrey CBE SI Pk, Chairman, Bestway Group. Bestway Automotive said that its commitment will extend beyond vehicle sales to providing unparalleled after sale services and supporting the wider mobility ecosystem in Pakistan and contributing to the country’s transition towards new-energy mobility.
The upcoming launch will mark the beginning of a long-term journey focused on bringing advanced automotive technology and safety to Pakistani consumers while contributing to the development of Pakistan’s evolving automotive and mobility sector.
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