Blog - Is Pakistan ready to adapt electric vehicles?

Is Pakistan ready to adapt electric vehicles?

According to the industries minister, the government would like to see a rise in the number of electric vehicles on the road in order to protect the environment and reduce the cost of oil imports.

ISLAMABAD: On Wednesday, Federal Minister for Industries and Production Makhdoom Khusro Bakhtyar said the new strategy would focus on the automobile industry's growth and development, as well as affordability, quality, availability, and indigenization.

 

The minister said that the government would want to see an increasing footprint of electric vehicles to better the environment and lower the oil import bill during consultative sessions with auto sector stakeholders to discuss the Auto Industry Development & Export Plan (AIDEP) 2021-26.


Separate talks with the minister were held by representatives of the Pakistan Automotive Manufacturers Association (Pama) and the Pakistan Association of Auto Parts and Accessories Manufacturers (Paapam). Razak Dawood, the Commerce Adviser, was also present.

 

The minister advised both organizations to submit proposals to lower the pricing of compact cars so that they are affordable to the country's lower middle class.


Pama and Paapam applauded the government's efforts to establish a policy that is widely accepted by key stakeholders.

 

The organizations also praised the present government for assisting the sector during the Covid-19 outbreak by providing wage loans, investment loans, and lowering interest rates to protect the industry.

 

The consultative meetings will be held till the AIDEP draft is finalized.


Support for hybrid vehicles is being sought.

Meanwhile, the local sector has sought government backing and a framework for hybrid electric vehicles in another development (HEVs). Consumers should choose HEVs over electric vehicles, according to the industry (EVs).

 

The current government has previously authorized and notified the country's first-ever EV Policy in order to facilitate the industry's new transformation.

 

The goal of the strategy is to completely replace a traditional internal combustion engine with a battery-powered system.


“EV battery degeneration of up to 3% each year results in extra charging cycles. This means higher CO2 and fewer mileage, as well as a significant loss in economic value,” stated SM Ishtiaq, CEO of SM Engineering.

 

He told the reporters on Wednesday that 30,000 electric vehicles will utilize 1% of Pakistan's generation capacity. “Since one unit of electricity costs Rs50, it will cost Rs2,000 to charge a 40 kWh battery and achieve a range of less than 180km. “This corresponds to a consumer cost of Rs11 per km,” he said.


“On the other side, the cost of a hybrid electric vehicle (HEV) is Rs5 per kilometer, while the cost of an internal combustion engine (ICE) is roughly Rs9.3 per km, which is far more efficient for the consumer than EVs, so a sensible decision will be either HEV or ICE,” he added.

 

“While designing or implementing rules in this regard, the government and policymakers should seriously investigate various options to BEVs because hybrid remains the most practicable technology because it offers the best of both worlds,” said Mr Ishtiaq.

 

He went on to say that hybrid vehicles are a better alternative than electric vehicles because the latter would result in a large outflow of dollars if 20,000 units per year were imported.

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