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 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.
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.
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| 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.
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%).
15 comments:
take CO2 per capita (after removing outliers such as tiniest countries like Qatar) and you get a different picture...Hindu extremists
A very welcome development.
Though the Indian govt had earlier set an ambitious target to "electrify" its automobile industry by 2030 and gives tax sops and subsidies for EV manufacturing and sales, the inadequacy of charging infrastructure, long charging times, range anxiety and high prices of EV batteries have remained the main hurdles in its mass adoption. After an initial surge lasting a few years, growth in sales of EVs here appears to have flattened out in recent months eventhough more models are being introduced by domestic and foreign manufacturers. Sales of electric scooters have had a good growth since they are mostly used for shorter trips (to offices, grocery shops, dropping off kids at school etc..) and can be easily charged at home overnight, but the case of electric cars is another matter as families often take their cars for longer drives during weekends, in which case the lack of charging stations and hours-long charging times could be a deal-breaker.
On the manufacturing side of things, I think Pakistan does have an opportunity to become a manufacturing base for Chinese EV brands in the region since there are restrictions on Chinese FDI in India after the recent border clashes. (With the exception of a couple of Chinese brands like BYD and SAIC-owned MG, India's EV landscape is at present largely dominated by Indian manufacturers with Tata Motors cornering over 60% of the sales of electric cars, and scooter-makers like Ola, Ather, Bajaj and TVS dominating the electric two-wheelers.) But the question remains as to how far Pakistan can capitalize on this opportunity in the midst of its acute economic crisis and become a true "manufacturer" of EVs rather than a mere "assembler" of imported CKD kits from China. In fact, this dependency on CKD kit imports and low levels of parts localisation in Pakistan's auto industry has resulted in a spate of plant shutdowns by its auto assemblers in recent times as they could not open LCs with the banks (due to the country's precarious forex reserves) to import the kits.
As for CO2 emmissions, the only reason why Pakistan does not figure among the top greenhouse gas emitters is due to its lower industrial development. India's contribution of greenhouse gases is 5 times smaller than China's for the same reason. Vehicle emmission norms have been made very stringent in India in recent years and India's auto manufacturers have to comply with BS6-II (largely equivalent to Euro 6) and this has resulted in a jump in vehicle prices here. There has also been an ongoing program to take older, polluting vehicles off the roads with financial incentives for purchase of newer ones. But there are many other industries and coal-fired power plants that continues to be the top contributors of pollution in India.
Anyways, good luck with asking the world's top polluter to accept the responsibility for Pakistan's floods. :-)
The per-capita contribution of greenhouse gases by Hindu extremists is 5 times smaller than Chinese commies due to the Hindu rate of economic growth. ;-)
sorry, Hindu extremists have nothing to do with any of these. Last part was noise from a link that I pasted to another comment :)
Solar projects receive lowest-ever tariff bid
Bid of Rs11.2 per unit marks pivotal shift in renewable energy sector
https://tribune.com.pk/story/2489390/solar-projects-receive-lowest-ever-tariff-bid
KARACHI:
In a landmark development, K-Electric's (KE) 150-megawatt solar energy projects in Balochistan have achieved the country's lowest-ever tariff bid, setting a new industry benchmark and marking a pivotal shift in the renewable energy sector.
A bid of Rs11.2 per unit, revealed during a ceremony, underscores the trust in private sector-led initiatives, particularly in the context of Pakistan's ongoing economic challenges. Earlier, Bloomberg News highlighted KE's endeavours to nearly double Pakistan's solar capacity by adding 640MW of clean energy to its portfolio in the next two years.
It was revealed that the bidding process for those projects began in August and would conclude in September 2024. The portfolio, which includes 200MW of hybrid solar-wind generation, is also a critical component of KE's strategy to reduce reliance on expensive fossil fuels and lower the country's overall import bill.
The 640MW of projects, currently in the pipeline, have been divided into three tranches: 150MW solar projects in Balochistan, a 270MW project in Sindh and a 220MW site-neutral project that will be the first hybrid solar and wind energy venture. These projects are expected to significantly increase the share of renewable energy.
Pakistan has long been plagued by high electricity prices, driven by its dependence on costly fossil fuel imports. With monthly electricity bills having risen 155% since 2021, often surpassing rent costs for many families, the shift towards more affordable and sustainable energy sources is both urgent and necessary.
Currently, solar energy accounts for just 1% of the energy mix, with a total capacity of 630MW. Doubling this capacity could provide much-needed economic relief to consumers and help stabilise the energy sector.
The recent financial bid opening event in Karachi was attended by representatives from both international and local entities, including JCM Power Group and Hecate Global Renewables from North America, and Pakistani companies such as Atlas Power, Hub Power Holding Co and Sapphire Electric Co.
Can ride-hailing, logistics and delivery companies lead an EV revolution in Pakistan? - Business & Finance - Business Recorder
https://www.brecorder.com/news/40292113
TCS Private Limited, one of the largest logistics organizations in Pakistan, initiated a pilot project in December 2023 with 50 electric bikes in collaboration with the start-up ezBike. These bikes are equipped with 2KW batteries and have a range of up to 100 km, capable of carrying a 40 kg delivery box.
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Pakistan is seeing a massive surge in intent and efforts when it comes to adopting electric vehicles (EV), but there are significant challenges – including logistical constraints – on the road ahead, say experts.
Surging fuel prices, record inflation, and an economic crisis in the backdrop of devastating floods and effects of climate change have all pushed consumers towards the ‘greener’ option. However, many still believe that it will take a lot more before EVs become a more common sight in Pakistan.
“EVs (four-wheel) or even electric bikes are mostly bought by the affluent, and these are their second vehicle, rarely used, mostly as a hobby,” said auto dealer Anjum Rizvi who has a showroom in Karachi’s Khalid Bin Waleed area.
“Most people are reluctant to buy EVs. It’s not because they don’t like them. They see it as an ‘experiment’ at the moment and in this time of high inflation, no one wants to experiment with money.”
While Pakistanis may need to wait before seeing EVs ply on the roads, the harm being caused by traditional vehicles will be irreversible.
Yasir Hussain of Climate Action Center – a group that creates awareness for climate change initiatives – said roughly, over 50% of Pakistan’s air pollution in urban areas comes from tailpipes. Reducing pollution due to mobility will be one of the major feats for a sustainable future.
Rizvi said positive user experiences will be the biggest reason behind people embracing EVs at an individual capacity.
“Government can play a role and more importantly, the bulk use of transport, such as ride-hailing and logistics companies, can play a role as they can overcome challenges comparatively easily as compared to individuals,” Rizvi said.
Experience so far
However, the picture in the industry setup tells a different story.
After interviewing at least half a dozen key players in the ride-hailing, delivery and logistics space, there are several hindrances in the adoption of EVs.
Hussain of Climate Action Center said electric motorcycles have been facing challenges in the ride-hailing segment because the passenger weight significantly reduces efficiency – the prime reason for adopting an electric bike.
Rafiq Malik, chief operating officer of Bykea, among the leading players in the space, corroborated this. He also mentioned that extra weight and speed significantly reduce range.
“The first wave of EVs generally isn’t well-suited for a bike-taxi business. Similar feedback comes from Gojek in Indonesia and Ola in India (once you remove the subsidies).”
Bykea conducted a pilot with electric bikes from January to June last year. However, they encountered significant challenges.
In an interview with Business Recorder, Malik stated the first challenge is the high price of electric bikes, which is on average 3-4 times higher than that of an ICE (Internal Combustion Engine) motorcycle.
The company also struggled with battery performance.
“We experienced performance uncertainty and noticed the battery performance deteriorating over time. Initially, we achieved 70 km per charge, which dropped to around 50 km per charge by the third or fourth month,” Malik said.
Another challenge they faced was electric bike maintenance.
“There is no repair ecosystem available, and drivers would have to return the bike to the vendor for minor repairs, leading to significant downtime and revenue loss.”
I'm not sure how well suited electric motorcycles or cars would be in commercial use as e-taxis or delivery platforms as such use cases involve longer runs per day which may entail the inconvenience of multiple, long charging intervals. But for individuals and families, electric two-wheelers (and step-through scooters in particular) are the low-hanging fruit for "electrification" of mobility, particularly so in case of developing economies like Pakistan and India where two-wheelers are all that an average middle class family can afford. People would use electric scooters mostly for their daily short distance commutes to their colleges, workplaces, grocery shops etc, in which case daily over-night charging of the two-wheeler at their residence would be sufficient and practical enough. Like the automatic (or "gearless") ICE scooters, an added advantage of electric scooters is the ease of riding, convenience of under-seat storage, flat footboard and step-through design that makes them suitable for both genders alike. For this reason, electric scooters have proved quite popular with buyers in India and have become a fairly common sight on roads alongside their ICE counterparts, with the established and reputable domestic two-wheeler brands like Bajaj, TVS and Hero (aside from EV startups like Ola and Ather) bringing out models in different price brackets with varying battery capacities and range. In recent times the price difference between electric scooters and their ICE counterparts have also narrowed somewhat with falling battery prices (and some help from government subsidies) that has helped sales.
But a pertinent question in case of Pakistan is how the recent spate of hikes in electricity tariff over there would affect the attraction of such EVs for a middle-class buyer as their lower running costs are their primary USP.
BEIJING, Apr 24 (APP): Pakistan, in its timely joining the global trend, is ramping up cooperation with international EV giants to amplify its own competence.
Last month, Automobile brand Huazi Green Energy, a joint Pakistan-China venture, announced the plan to display the first electric car in Islamabad this month, achieving yet another score in Pakistan’s EV endeavour.
https://www.app.com.pk/global/pakistan-catching-ride-on-global-ev-boom/#google_vignette
In May, Chinese vehicle manufacturing company Huaihai in collaboration with its Pakistani partner announced that it is seeking to expand its existing business by investing $10 million in manufacturing electric vehicles, starting with two-wheeler and four-wheeler vehicles in Punjab.
Among the global players, China’s presence in the international EV market has become too prominent to be neglected. Among the global EV sales, 59% are contributed by China, which is also the world’s biggest EV producer, with 64% of global volume.
In the first half of this year, China’s EV brand BYD witnessed a record-breaking 95.8% increase y-o-y of cumulative sales, snapping global sales champion. Last month, the country rolled the 20 millionth EV vehicle off the assembly line, China Economic Net (CEN) reported on Wednesday.
Pakistan is not the only country that has set its eye on the biggest automaker in the world as international venerable auto brands are trying to snatch a share of China’s EV dividend.
Also last month, German automobile manufacturer Volkswagen invested $700 million in leading Chinese smart EV company XPENG, taking 4.99% of the latter’s shares. They also announced the joint development of two B-class battery electric vehicles (“BEV”) models for sale and collaboration on future EV platforms, software technologies and supply chains.
Following its subsidiary Audi’s move to join hands with China’s SAIC Motor to develop intelligent connected vehicles (ICVs), this was considered by some auto experts as a watershed moment for China’s auto sector to shift from technology import to export, which is expected to shape a new international divison of labor.
A number of Chinese companies such as BAIC, Changan, JAC Motors, Great Wall Motors, MG, FAW, and Chery Automobile have established their presence and even formed joint ventures in Pakistan, driving the EV industry in the country towards intelligence and electrification.
“While there is a long way to go for Pakistan to build the EV infrastructure, cut down EV prices, and produce parts locally, we have a lot to benefit from the technology transfer from global tycoons like China. On my visit to one of the EV manufacturing hubs in China, Yangtze River Delta, I was surprised to see that a new energy vehicle can be produced within four hours, with chips and software from Shanghai, batteries from Changzhou, Jiangsu Province, and integrated die-casting machine from Ningbo, Zhejiang Province. In the complete, highly-efficient supply chain, there are countless models for us to learn from”, a Lahore-based automobile seller said.
"While there is a long way to go for Pakistan to build the EV infrastructure, cut down EV prices, and produce parts locally, we have a lot to benefit from the technology transfer from global tycoons like China.. In the complete, highly-efficient supply chain, there are countless models for us to learn from.."
Chinese automotive industry is in a different league altogether, and it may be difficult for Pakistan to replicate China's scale and manufacturing model for now. I think as an intermediate step it would make sense for Pakistan to learn from India's growing EV manufacturing industry (and automotive manufacturing industry in general) and the endeavours that are being made by Indian auto firms towards in-house product development and parts localisation, as both countries grew from a shared economic base and have faced many of the same challenges and constraints.
For example, India's Tata motors used to make pretty awful cars in the past. But after their acquisition of Jaguar and Land Rover (JLR), Tatas made good use of JLR's design expertise to build better cars for the Indian market and is now India's No:3 car manufacturer behind Maruti Suzuki and Hyundai. Tatas also became the trailblazers in India's EV scene by successfully adapting many of their ICE product portfolio to electric powertrains to make relatively affordable EVs for the masses. Tata's main domestic competitor - Mahindra - started out as a license manufacturer of Willy's Jeep, but now designs its own SUVs, some of which like the "Thar" have become iconic and "aspirational" in India.
There are similar stories in India's two-wheeler industry as well. Bajaj started out as a license manufacturer of Vespa scooters and later Kawasaki motorcycles, TVS began by manufacturing mopeds and Suzuki motorcycles, and Hero motorcorp began by manufacturing Honda motorcycles. Now all of these companies designs their own products and also builds small capacity motorcycles for global firms like KTM, Triumph, BMW and Harley-Davidson. Royal Enfield is another success story where the British classic motorcycle marque that died out in the UK in the '60s and facing liquidation of its antiquated Indian unit was practically revived from its grave by the vision of one man - Siddhartha Lal of Eicher group - who made strategic investments by setting up design labs in UK and Spain. Now Royal Enfield is perhaps the most valuable Indian motorcycle brand and exports its products to Western markets. Or if you want to go by the way of EV startups, there is the story of Ola and Ather - two leading manufacturers of electric scooters in the Indian market.
There is perhaps a whole lot that Pakistan can learn from these Indian examples and experiences as Pakistan too had local companies manufacturing (or "assembling") Japanese cars and motorcycles for decades. But of course, the current state of relations between India and Pakistan makes such cross-border learning and collaboration pretty much impossible.
(And it goes without saying that India in turn has a whole lot to learn from China and its industries too, since the economies and industrial bases of both Asian giants weren't all too different until a few decades ago.)
Car export target to remain unmet if standards ignored, senators say -DAWN, August 24, 2024
https://www.dawn.com/news/1854291/car-export-target-to-remain-unmet-if-standards-ignored-senators-say
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ISLAMABAD: Senators attending a house committee meeting on Friday cautioned that the 7pc export target set for automakers could not be achieved if locally-made vehicles failed to meet international standards.
Senator Saleem Mandviwalla regretted that cars produced in the country were not of international standards, adding that it is impossible to find suitable export markets for these vehicles.
Senator Nyazee stated that no manufacturer should be allowed to produce cars that do not follow the WP-29 regulations, questioning who would be responsible for the lives lost because of such vehicles.
Under the policy, there is 1pc customs duty on parts of EV vehicles compared to 30pc on traditional vehicles.
Besides, the tariff for EV vehicles is around 5-10pc compared to 25-30pc for traditional vehicles. These steps were taken to attract global EV manufacturers. Mr Mandviwalla stressed the need for building an EV-friendly infrastructure and said that in its absence the EV sector would not sustain itself.
The committee was informed that 13 automobile companies were currently operating in the country. These companies have installed a production capacity of 500,000 units annually in more than 40 models with over 100 variants. They contribute 4pc to GDP, pay Rs300bn in taxes, and generate over 2m jobs in the country.
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I do not know exactly what the Senator meant when he remarked that locally-made vehicles in Pakistan do not meet international standards for exports. Is it that Pakistani plants assemble older models that do not meet the new emission and safety standards in international markets?
Also, I do not know the specific reasons why Pakistani subsidiaries/partners of Suzuki, Honda, Toyota, Hyundai and Kia shouldn't be able to export its locally produced cars, while the same companies use their Indian plants as a major export base. In fact, companies like Suzuki have often manufactured cars at their Indian plants purely for exports (eg: 3-door Jimny, which was never launched in Indian market) while some models like 5-door Jimny, Baleno and Fronx are manufactured and exported from their Indian plants alone. Furthermore, Suzuki intends to manufacture their new e-SUV, the eVX, at their Indian plant for exports to international markets, and plans to launch it in the Indian market only at a later date. Perhaps the low levels of localisation in Pakistani plants (compared to India) have made exports of cars assembled from CKD kits unprofitable? Or is it the availability of large manufacturing capacity in neighbouring India that has discouraged these Japanese and Korean companies from purusing exports from Pakistan?
Nevertheless, perhaps Pakistan has a window of opportunity to become a manufacturing and export base for Chinese auto brands (since Chinese FDI is restricted in India) in the region, but it would need to invest in manufacturing and greater parts localisation rather than assembly.
As for the lower tariff and customs duty for electric vehicles, Indian govt gives the same incentives for EVs, but sales are still constrained by other factors - high prices of EV batteries, underdeveloped charging infrastructure, longer charging times, range anxiety and a perception that EVs would have low resale value compared to the ICE counterparts.
Budget 2024-25: Production of solar panels, inverters and batteries becomes cheaper - Must Read - Aaj English TV
https://english.aaj.tv/news/330365159/budget-2024-25-production-of-solar-panels-inverters-and-batteries-becomes-cheaper
According to the finance bill, the government has eliminated all taxes on machinery and equipment used in the manufacturing of lithium-ion batteries, most of these were subjected to taxes ranging from 5% to 20%.
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Pakistan’s energy system strained by surge in solarization, battery tech
https://www.thenews.com.pk/print/1215486-pakistan-s-energy-system-strained-by-surge-in-solarization-battery-tech
ISLAMABAD: The rapid solarization and advancements in battery technology are increasingly challenging Pakistan’s existing energy system.
The influx of over 7,000 megawatts of imported capacity, coupled with some industrialists and bulk consumers installing in-house plants of up to 1.5 megawatts, threatens to disrupt long-term agreements with Independent Power Producers (IPPs).
This situation is exacerbated by mounting frustration among power consumers, who are being burdened with substantial multi-billion-rupee capacity charges on their monthly bills.
The provincial governments, especially Punjab and Sindh’s distribution of solar panels to the public, will further pressurise the system, as they will now be drawing less from the grid and so the burden of capacity charges will increase and ultimately the tariff, which will further take away consumers from the grid power.
“Various bulk consumers have done aggressive solarization, even they installed capacity of up to 1.5 megawatts and have kept the grid at backup,” Chairman Nepra Waseem Mukhtar said while presiding over a public hearing on Wednesday adding, “It’s [solarization] a threat.”
The Nepra chairman said that this 7,000 MW imported solar capacity is not for only rooftops, bulk consumers are also installing their big capacities. He also tasked the CPPA with conducting a study on solar energy usage, mapping and submitting a report to Nepra.
Central Power Purchasing Agency (CPPA) while pleading the case on behalf of Discos reported that electricity consumption in June 2024 was 10 percent lower than the reference period consumption, while two percent less than last year.
Waseem Mukhtar said that the government has launched a study to determine if Pakistan requires additional power generation capacity. He emphasized the need for a logical approach to adding more electricity to the national grid. The study is also evaluating that Commercial Operating Dates (CoDs) for some plants may be postponed, he said, mentioning that the study will determine which plants can be retired early.
Indian reliance on Chinese imports is challenge for U.S. trade strategy - The Washington Post
https://www.washingtonpost.com/world/2024/09/02/india-china-manufacturing-supply-chains/
NEW DELHI — American businesses looking to reduce their reliance on China have increasingly been eyeing India in the past few years as a new manufacturing hub — and as a hedge against potential disruptions in Chinese supply chains caused by rising geopolitical tensions or another pandemic.
But as India has amped up its production of goods like smartphones, solar panels and medicine, the Indian economy itself has become even more dependent on Chinese imports, in particular for the components that go into these products, according to trade figures and economic analysts.
This dynamic serves as a reality check for U.S. policymakers, who have been urgently promoting efforts to diversify supply chains away from Chinese factories and “de-risk” the commercial relationship with China.
“Unless China stops being the third party from where components come in and we just assemble, that de-risking is not going to happen for any country coming in and producing in India,” said Sriparna Pathak, an associate professor at Jindal University focusing on India-China relations.
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To support the production of Indian textiles and garments, another important export industry, India has been ramping up imports of yarn and fabric from China. Even the automobile industry — considered a success story for both domestic and export sales — has been increasing its imports of vehicle parts and accessories from China.
As with electronics, India has made significant strides in producing solar panels but now relies even more on the Chinese solar cells that go in them.
After the United States restricted imports of Chinese solar panel material because of concerns about human rights and labor abuses, Indian exports of solar panels to the American market spiked in 2022, increasing in value by almost 150 percent, according to U.S. government trade figures. The next year saw an even sharper increase.
During that time, however, India sourced between half and all of its solar panel components — such as modules, cells, wafers and solar glass — from China between 2021 and 2023, according to a BloombergNEF report at the end of last year.
Senior Biden administration officials said it is not realistic to think that inputs from China can be excluded at this moment from American supply chains. “We have taken a more practical view that in order to effectively diversify, the first step is to get a foothold in the parts of this supply chain where you can diversify today. And then from there you can grow upstream,” said a senior administration official, speaking on the condition of anonymity to discuss sensitive strategies toward China.
Addressing the significant presence of Chinese components in Indian-made solar panels, the official said: “We recognize we are in the first inning of a long game, but we are at an inflection point in that there is now a clear recognition, not just in the U.S. and India but among friends and allies, that being overly reliant on one source for the clean-energy economy is not sustainable and requires a concerted effort to de-risk. But it’s going to take time.”
Electric vehicles will account for up to half of auto sales by 2030, BYD Pakistan says
https://finance.yahoo.com/news/electric-vehicles-account-half-auto-090125014.html
KARACHI (Reuters) - Up to 50% of all vehicles bought in Pakistan by 2030 will be electrified in some form in line with global targets, BYD Pakistan, a partnership between China's BYD and Pakistani car group Mega Motors, said.
Warren Buffett-backed Chinese electric vehicle giant BYD last month announced its entry into Pakistan, making the South Asian nation of 250 million people one of its newest markets.
The partnership has announced plans to open an assembly plant in early 2026, but will introduce vehicles for sale later this year, after launching three models in August.
"I see conversion to new energy vehicles NEV at up to 50%," Kamran Kamal, BYD's spokesperson in Pakistan, told Reuters in an interview at his office on Thursday. Kamal is also the CEO of Hub Power, which owns Mega Motors.
The target is an ambitious one for Pakistan's auto sector, which has been largely dominated by Japanese automakers Toyota, Honda and Suzuki, with vehicle sales hitting a 15-year low in the fiscal year to June.
Recently South Korea's KIA has begun challenging for market share along with Chinese companies Changan and MG, all of whom offer hybrid vehicles. BYD Pakistan is the first major new energy vehicle entrant in the Pakistani market.
Hybrid electric vehicle sales in Pakistan have more than doubled in the past year. While reaching 30% NEV adoption by 2030 is feasible, achieving 50% may be more challenging due to infrastructure hurdles, said Muhammad Abrar Polani, auto sector analyst at Arif Habib Limited.
Kamal said the challenge of charging infrastructure would be addressed by government plans to incentivise its construction.
Local media reported in August that standards for EV charging stations had been drafted by the power ministry, with the government considering offering them affordable electricity.
Kamal said BYD Pakistan is collaborating with two oil marketing companies to establish a charging infrastructure network and aims to establish 20 to 30 charging stations within the initial phases concurrent with the rollout of its cars.
BYD Pakistan will initially sell fully assembled vehicles, which are subject to higher import charges than vehicles shipped in parts and assembled locally.
"Our main focus is to have locally assembled cars on the roads as soon as possible," said Kamal, citing difficulties in importing and selling fully assembled units under Pakistan's current duty structure.
Kamran said BYD Pakistan is deciding on the size of a new plant, but details about the investment and partnership with power utility HUBCO will be disclosed later.
Beijing urges Chinese EV makers to avoid investments in countries like India and Turkey
https://www.scmp.com/business/china-business/article/3278236/beijing-urges-chinese-ev-makers-avoid-investments-countries-india-and-turkey
Chinese EV makers’ drive to go global hit a snag after Beijing urged them to avoid investing in countries like India and Turkey
Chinese electric-vehicle (EV) makers’ drive to go global hit a snag after Beijing urged them to avoid investing in countries like India and Turkey.
The Ministry of Commerce convened executives from more than a dozen electric car makers in July, under so-called “window guidance”, to discuss the risks of building plants abroad, according to Bloomberg.
Two industry officials with knowledge of the situation confirmed the meeting took place and said the ministry told carmakers to better protect their assets and technology as they ramp up their expansion overseas.
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In mainland China, authorities use window guidance to give verbal or written instructions to companies on government policy. Generally, companies that fail to comply with policy directions delivered via window guidance will not be punished in accordance with the country's rules and laws.
During the meeting, the EV makers were encouraged to focus on knock-down assembly lines - where key components are produced at home before being shipped overseas where they are assembled closer to the consumption markets - rather than setting up supply chains and large-scale facilities outside the mainland.
They were also told not to make any investments in countries like India and Turkey, the sources said.
The commerce ministry did not respond to queries by the Post on Thursday.
The sources said the guidance arose from policymakers' concerns about Beijing's rising tensions with certain countries where Chinese businesses and products could be boycotted by local authorities and consumers. In addition, government officials are worried about the risk of Chinese technology being stolen by foreign counterparts.
"The instructions [by the ministry] are interpreted as a warning to the companies since they are now actively looking to raise manufacturing capacity in markets such as Southeast Asia and some European countries," said Chen Jinzhu, the chief executive of Shanghai Mingliang Auto Service, a consultancy. "It may cause some of the companies to slow down their overseas plant building pace."
Chinese EV makers and vendors in the automotive supply chain are at the global vanguard because they have capitalised on core technologies for batteries, self-driving and in-car entertainment, according to David Xu Daquan, the China president of Bosch, the world's largest automotive supplier.
The mainland is also the world's largest EV market, where sales of pure electric and hybrid cars represented 65 per cent of the global total in the first half of this year, according to the China Passenger Car Association.
However, EV makers from BYD - the world's largest electric car maker - to start-up Hozon New Energy Automobile are running into trade barriers set up by developed economies.
In May, the White House quadrupled tariffs on Chinese-made EVs, which now stand at 100 per cent.
Last month, the European Union said additional duties of 9 to 36.3 per cent would be applied to EVs imported from China, 11 months after it launched an anti-subsidy investigation into battery-powered cars assembled on the mainland.
A number of companies from BYD to Great Wall Motors are aggressively expanding production abroad with plans to build electric cars in or close to consumption markets as a way of avoiding high tariffs.
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