INTRODUCTION
Dear Readers as the world races toward sustainable transportation, electric vehicles (EVs) are rapidly becoming a focal point of change. For countries like Pakistan, where the import bill for fossil fuels is a major burden and urban air quality is deteriorating, EVs offer a promising solution. Despite concerns about depreciation, upfront costs, and infrastructure, the EV market in Pakistan holds substantial potential for both private and commercial users. This article examines the benefits of EV adoption, strategies to offset rapid depreciation, and outlines viable business cases for middle- and upper-income segments.
1. The Pakistani Context: Transportation and Energy Challenges
Pakistan is heavily reliant on imported fossil fuels to meet its energy needs, particularly in the transportation sector, which accounts for nearly 40% of total oil consumption. With frequent fluctuations in global oil prices, local fuel costs have soared—making transportation expensive for households and businesses alike. Additionally, air pollution in cities like Lahore and Karachi is among the worst in the world, exacerbated by the high concentration of internal combustion engine (ICE) vehicles.
In this scenario, EVs offer a twofold advantage: they reduce dependency on imported oil and contribute to cleaner air.
2. Benefits of EVs for Private Users
2.1 Cost Savings on Fuel and Maintenance Electricity as a fuel source is significantly cheaper than petrol or diesel. At an average electricity rate of PKR 25-30 per unit and an EV consuming 15-20 kWh per 100 km, the running cost is roughly PKR 300-600 per 100 km—much lower than the PKR 2,500-3,000 cost for petrol vehicles covering the same distance.
Maintenance is also substantially cheaper. EVs have fewer moving parts, which means fewer breakdowns, no oil changes, and reduced wear and tear.
2.2 Government Incentives and Import Relief Though still evolving, the Pakistani government has introduced some incentives for EV users, including lower import duties on EV components and exemptions from registration fees. With policy support expected to grow, private users stand to benefit further.
2.3 Enhanced User Experience EVs offer smooth acceleration, reduced noise pollution, and smart connectivity features that are becoming increasingly attractive to modern consumers.
3. Benefits of EVs for Commercial Users
3.1 Fleet Management Cost Reduction For logistics, ride-hailing, and delivery services, EVs can dramatically reduce operational costs. For example, a delivery van running on electricity may cut fuel expenses by up to 70%, directly improving profit margins.
3.2 Brand Positioning and ESG Compliance Companies are increasingly being judged on their environmental impact. Adopting EVs can enhance a company’s brand image and support environmental, social, and governance (ESG) goals.
3.3 Predictable Operational Costs Unlike fuel prices, which fluctuate wildly, electricity costs in Pakistan are more stable and predictable, enabling better budgeting and long-term planning.
4. Addressing Depreciation: How to Recover the Value of an EV
4.1 Total Cost of Ownership (TCO) Advantage While EVs have higher upfront costs and depreciate faster in certain markets, their lower running and maintenance costs help even out the scales. Over a 5-year period, the TCO of an EV can be lower than that of a comparable ICE vehicle.
4.2 Secondary Battery Use and Recycling Even after their automotive life, EV batteries can be repurposed for energy storage systems, backup power units, or solar home kits. This adds residual value and promotes a circular economy.
4.3 Subscription and Leasing Models Leasing options can help offset depreciation concerns by lowering the burden of upfront costs and enabling vehicle upgrades. This model is especially relevant for commercial fleet operators.
4.4 Resale Markets and Ecosystem Growth As the EV ecosystem matures in Pakistan, a secondary market for used EVs and components will emerge, helping users recover value through resale and trade-ins.
5. Best Business Cases for Middle- and Upper-Income Segments
5.1 Middle-Income Segment: Ride-Hailing and Delivery Services
Middle-income individuals can benefit by using EVs for ride-hailing (Indrive, Yango, Metro) or delivery jobs. A small hatchback EV can be acquired for starting PKR 3-5 million, and with low operational costs, drivers can generate a steady income with higher profit margins.
Additionally, the growing trend of e-commerce and food delivery provides ample opportunities for two- and three-wheeler EVs.
5.2 Middle-Income: Cooperative Ownership Models Communities or groups of individuals can pool resources to buy and operate EVs collectively, sharing maintenance and charging infrastructure, and reducing per-user costs.
5.3 Upper-Income Segment: Luxury EV Ownership and Home Charging Infrastructure Wealthier individuals can explore premium EVs such as Tesla, Audi e-tron, or BMW i-series. Their high-end performance and luxury features make them attractive lifestyle choices. Many upper-income households already have access to private parking and can install dedicated charging stations at home, enhancing convenience.
5.4 Upper-Income: Solar-Integrated EV Ecosystems Upper-class users with rooftop solar installations can achieve near-zero fuel costs by charging their EVs with solar power, maximizing both environmental and financial benefits. This creates an integrated green lifestyle.
5.5 Investment in Charging Infrastructure Affluent individuals and businesses can invest in EV charging stations, tapping into a nascent but promising market. As EV adoption grows, early entrants in the charging business can reap substantial returns.
6. Infrastructure and Policy Support
Pakistan’s EV policy envisions 30% of all new vehicles sold to be electric by 2030. To achieve this, concerted efforts are needed:
- Expansion of public and private charging infrastructure
- Import duty rationalization for EV parts
- Encouraging local EV manufacturing and assembly
- Training programs for EV maintenance professionals
Collaboration between government, private sector, and civil society is essential to build a robust EV ecosystem.
7. Barriers to Adoption and the Way Forward
While the prospects are promising, certain challenges must be addressed:
- Lack of widespread charging stations
- High upfront vehicle costs
- Limited model availability
- Public awareness and trust issues
Solutions include government subsidies, public-private partnerships, financing options, and awareness campaigns.
8. Case Studies and Global Benchmarks
8.1 India: A Regional Success Story India’s EV strategy serves as a relevant example. The country’s Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) program has catalyzed EV adoption through incentives for manufacturers and consumers. Notably, states like Delhi have introduced additional subsidies, waived road taxes, and supported charging station development. Pakistan can replicate such localized strategies tailored to urban centers like Lahore and Islamabad.
8.2 China: Leading by Volume and Infrastructure China’s early and aggressive investments in battery manufacturing and EV infrastructure have made it the global leader. Over 50% of all EVs sold globally are in China. The Chinese government’s strategy to subsidize EV purchases and offer free license plates in major cities demonstrates how smart policy can reshape market behavior.
8.3 UAE: Infrastructure-Led Model Dubai’s “Green Mobility” initiative and free public parking for EVs reflect how infrastructure support and convenience-based perks drive adoption. Pakistan’s elite and commercial hubs can draw from this strategy to pilot high-visibility EV zones.
9. EV Technologies and Performance Trends
9.1 Battery Innovations Battery costs have declined by over 80% in the past decade, with newer chemistries like Lithium Iron Phosphate (LFP) offering safer, longer-lasting alternatives. Pakistani consumers will benefit from this trend, especially as local dealers begin to import newer models.
9.2 Range Improvements Modern EVs now offer ranges approximate, 250 to 600 km on a single charge. Even budget EVs like the BYD Dolphin and MG4 are reaching 300+ km range, making them viable for both city and intercity travel in Pakistan.
9.3 Fast Charging and Battery Swapping DC fast charging and battery swapping stations can mitigate range anxiety. A 30-minute charge providing 80% battery capacity is already possible with many models. Pakistan’s private sector can lead investment in such infrastructure, supported by regulatory clarity.
10. Return on Investment (ROI): A Deeper Financial Comparison
Let’s consider a basic comparison:
- ICE Vehicle: Suzuki Cultus
- Fuel Cost: ~PKR 2,500 per 100 km
- Annual Maintenance: ~PKR 50,000
- 5-Year Fuel + Maintenance: ~PKR 1.4 million
- EV: MG ZS EV
- Electricity Cost: ~PKR 500 per 100 km
- Annual Maintenance: ~PKR 20,000
- 5-Year Fuel + Maintenance: ~PKR 400,000
This suggests an EV user saves ~PKR 1 million over five years. Even with a 10–15% faster depreciation, the lower running cost and secondary battery applications deliver a better net ROI.
11. Urban Planning and Mobility Integration
EVs can also be incorporated into broader urban development goals:
- EV Car-Sharing Hubs: Urban centers can integrate EV-sharing fleets for public access, reducing car ownership and congestion.
- Mixed-Use Charging Stations: Malls, tech parks, and public transport hubs can offer charging alongside retail or entertainment, boosting utility and adoption.
- Smart Grid Integration: In the long term, EVs can become part of Pakistan’s energy resilience strategy, feeding electricity back to the grid (V2G – Vehicle to Grid).
12. Final Thoughts: A Roadmap for All Stakeholders
To truly capitalize on the EV transition, a multi-stakeholder approach is essential:
- Government: Provide financial incentives, standardize regulations, and invest in infrastructure.
- Private Sector: Develop financing models, leasing options, and local EV assembly.
- Consumers: Shift mindset toward TCO, environmental impact, and tech-driven benefits.
- NGOs and Academia: Launch awareness campaigns and technical training.
With the right blend of policy, finance, and innovation, EVs can drive Pakistan toward cleaner air, reduced imports, and inclusive economic growth.
Conclusion
EVs present a transformative opportunity for Pakistan’s transport and energy sectors. By reducing fuel costs, lowering emissions, and offering viable business models, EVs can benefit both private and commercial users. With the right policies, infrastructure, and market incentives, even the challenges of depreciation and high upfront costs can be effectively managed. For middle-income earners, EVs offer a path to sustainable entrepreneurship, while for upper-income users, they represent a lifestyle upgrade and an investment opportunity. The future is electric—Pakistan just needs to plug in.
This exclusive article has been published in Automark’s August-2025 printed edition. Written by Aqeel Bashir