KARACHI: Electric vehicle (EV) motorbike assemblers and dealers in Pakistan are urging the federal government and the Engineering Development Board (EDB) to adopt critical policy reforms under the upcoming New Energy Vehicle (NEV) policy. Their charter of demands includes tax exemptions, free registration for customers, accessible financing options, and localisation incentives to reduce costs and accelerate growth in the NEV sector.
With nearly 40 EV motorbike brands entering the market and monthly sales reaching 3,000 units, the government aims to increase EV bike market share to 30%, targeting 500,000 units annually by 2028.
Industry Demands
Zero or 1% import duties on Completely Knocked Down (CKD) units.
Elimination of the 1% General Sales Tax (GST) on sales and 18% GST on imports to reduce consumer costs.
Free registration and financing options to encourage widespread adoption.
Localisation support to establish a robust domestic supply chain.
Advancing Localisation
Industry experts emphasize rapid localisation to save foreign exchange and cut costs. Senior analyst Muhammad Sabir Shaikh recommended the government encourage local production of bike frames and provide financial aid to Pakistan’s 700 auto parts factories. With incentives, the ceiling fan industry in Gujrat could manufacture bike motors, and local battery production could follow India’s model to meet growing demand. Achieving 70-80% localisation could significantly lower NEV prices while ensuring environmental benefits.
Innovative Features
NEV bikes offer advanced features like reverse control for inclines, Bluetooth speakers, USB chargers, and emergency switches allowing 20km travel in case of faults. Affordable spare parts and skilled technicians are now available at assembly units and showrooms.
Investment and Incentives
ETURBO CEO Sheikh Osama Nadeem stressed the importance of mass-market adoption, citing his company’s R&D-driven success in China. “With sustainable policies and good sales volume, we plan to relocate our operations to Pakistan,” he stated.
The EDB has shortlisted 10 NEV assemblers to supply 40,000 subsidised units via an e-portal. Meanwhile, the World Health Organization (WHO) has pledged funding to help developing countries adopt NEVs, promoting cleaner environments and phasing out gasoline vehicles.
The NEV industry’s growth hinges on government support through tax relief, financing, and localisation initiatives, aligning with global efforts to combat climate change and promote sustainable transportation.
Story by Gohar Ali Khan
