Public Notice C2/2026 Reshapes the EV Classification Landscape

The classification of Range-Extended Electric Vehicles (REEVs), also known as Extended-Range Electric Vehicles (EREVs), has long occupied a grey zone within Pakistan’s automotive and regulatory ecosystem. Blending electric propulsion with an onboard fuel-powered generator, these vehicles challenge traditional definitions of electric and hybrid technologies.

With the issuance of Public Notice C2/2026, Pakistan Customs has now delivered decisive regulatory clarity:

Range-Extended Electric Vehicles are classified as Electric Vehicles under PCT 8703.80 — vehicles propelled solely by electric motor(s).

This landmark determination aligns Pakistan with international customs interpretation under the Harmonized System (HS 2022) and guidance from the World Customs Organization (WCO), while also setting a precedent for how emerging propulsion technologies will be treated in the national EV transition.

Electric Propulsion with a Range-Extending Generator

Range-Extended Electric Vehicles employ a propulsion architecture commonly described as a series hybrid configuration, yet functionally they operate as electric vehicles in all driving conditions. Their defining characteristics include:

• Wheels driven exclusively by electric traction motor(s)
• High-voltage battery as the sole propulsion energy source
• Internal combustion engine operating only as a generator
• No mechanical linkage between engine and drivetrain

In practical terms, the engine can never propel the vehicle. All torque transmitted to the wheels originates from the electric motor alone.

This single engineering fact became the decisive criterion in tariff classification.

The Regulatory Question at the Heart of the Debate

REEVs combine two energy systems:

• Electric propulsion
• Fuel-based electricity generation

This duality triggered competing classification interpretations under Pakistan’s Customs Tariff:

PCT 8703.60 — Plug-in Hybrid Electric Vehicles
Vehicles in which both engine and electric motor can mechanically drive the wheels

PCT 8703.80 — Vehicles with only electric motor for propulsion
Vehicles propelled exclusively by electric motor(s)

The central legal question therefore emerged:

Can an internal combustion engine that never transmits torque to the wheels be considered a propulsion motor?

Industry Divide: Technology vs Tariff Interpretation

Importers and proponents of REEV technology argued that propulsion remains purely electric. In their view, the onboard engine functions merely as an auxiliary electricity source — analogous to external charging infrastructure.

Conversely, several domestic manufacturers and industry stakeholders asserted that REEVs should be treated as hybrid vehicles, emphasizing their fuel consumption, emissions profile, and classification in engineering taxonomy as series hybrids.

This divergence exposed a fundamental distinction often overlooked in policy discourse:

Vehicle technology classification and customs tariff classification are not the same.

Harmonized System Principle: Propulsion Mechanics Defines Vehicle Type

Pakistan’s Classification Committee examined HS heading 87.03 and reaffirmed a core principle embedded in global tariff structure:

Vehicle categories are determined by the source capable of delivering mechanical propulsion to the wheels.

Under this framework:

• Internal combustion vehicles — engine drives wheels
• Hybrid vehicles — engine and motor can drive wheels
• Electric vehicles — only motor drives wheels
• REEVs — only motor drives wheels

Although REEVs consume fuel indirectly, the internal combustion engine does not transmit mechanical power to the drivetrain. It therefore does not qualify as a propulsion motor under HS definitions.

International Consensus and Future HS Evolution

To ensure consistency with global practice, Pakistan Customs consulted the World Customs Organization. The WCO confirmed that under HS 2022:

Vehicles propelled exclusively by electric motor(s), even if equipped with an internal combustion engine used only for electricity generation, fall under subheading 8703.80.

Recognizing the growing adoption of REEV technology worldwide, the WCO has also introduced a dedicated subheading — 8703.81 — in the HS 2028 amendments. From 1 January 2028, REEVs will be statistically distinguished from pure battery electric vehicles while remaining within the electric propulsion category.

Pakistan’s Final Determination

Based on tariff text, explanatory notes, technical architecture, and WCO guidance, Pakistan Customs concluded:

• An engine used solely for charging is not a propulsion motor
• REEV propulsion is exclusively electric
• REEVs fall under PCT 8703.80 (electric vehicles)

This ruling establishes uniform national treatment for range-extended architectures entering Pakistan’s market, including vehicles such as Deepal REEV and Forthing REEV.

Strategic Implications for Pakistan’s EV Transition

Public Notice C2/2026 carries implications far beyond tariff coding. It influences how Pakistan’s mobility transition will evolve across policy, industry, and market adoption.

1. Regulatory Certainty
Manufacturers, importers, and investors now have clear classification guidance for REEV technology.

2. EV Market Expansion
REEVs can be positioned as electric-drive vehicles with extended range — addressing range anxiety, a major barrier in Pakistan’s EV adoption.

3. Policy Calibration Challenge
Although tariff-classified as EVs, REEVs are not zero-emission vehicles. Future fiscal incentives and environmental policy may need to differentiate propulsion from emissions.

4. Alignment with Global Standards
Pakistan’s classification now mirrors international HS interpretation, strengthening trade consistency and regulatory credibility.

Technology vs Tariff: The Defining Insight

Perhaps the most important lesson from Public Notice C2/2026 is conceptual:

A vehicle can be technologically a hybrid yet legally an electric vehicle for customs purposes.

This occurs because:

• Engineering taxonomy classifies by energy architecture
• Tariff law classifies by propulsion mechanics

REEVs sit precisely at this intersection — technologically hybrid, mechanically electric.

Conclusion: A Turning Point in EV Classification

Public Notice C2/2026 resolves a complex classification challenge created by next-generation propulsion systems. By confirming that Range-Extended Electric Vehicles fall under PCT 8703.80, Pakistan has aligned itself with global customs interpretation while enabling regulatory certainty for an emerging EV segment.

The ruling ultimately rests on a simple but decisive principle:

If only the electric motor drives the wheels, the vehicle is classified as electric — even when an engine generates the electricity.

As Pakistan advances toward electrified mobility, this decision marks a pivotal step in integrating new propulsion technologies into both policy and market reality.

Here is another exclusive article has been published in Automark’s March-2026. Written by @asif-mehmood

Pakistan’s automotive landscape could be on the verge of a major shift as the Chief Executive Officer of the Engineering Development Board, Hammad Mansoor, has indicated that a fully electric “Made-in-Pakistan” car priced at around Rs1 million may enter the market by June 2026.

Speaking to journalists at an Iftar dinner, the EDB chief made a striking claim that such an affordable electric vehicle could soon become a reality, potentially opening the door for a new segment of cost-effective mobility in Pakistan.

A Potential Game-Changer for the Market

The announcement comes at a time when the prices of two-wheelers, conventional vehicles, and electric cars have risen significantly, putting vehicle ownership out of reach for many consumers. A locally manufactured electric vehicle priced near Rs1 million could therefore represent a major breakthrough in accessibility and affordability.

If realised, it would likely become the lowest-priced electric car in the country, creating opportunities for a broader shift toward electrified mobility.

Possible Tax Relief in Upcoming Budget

During the interaction, the EDB chief also hinted that the upcoming federal budget may bring significant reductions in vehicle-related taxes, which could further support the growth of the auto sector.

According to him, such policy adjustments could make hybrid, electric, and conventional vehicles more affordable, while encouraging greater competition within the industry.

The move is expected to align with the government’s broader efforts to promote local manufacturing and technological development in Pakistan’s engineering and automotive sectors.

Increasing Competition in the Auto Industry

Another notable point raised during the discussion was the possibility that the longstanding dominance of a few large automobile companies in Pakistan may gradually diminish.

With new manufacturers entering the market and localisation efforts gaining momentum, the EDB believes vehicle prices could decline significantly. Mansoor suggested that car prices could potentially fall by as much as Rs2.5 million as production volumes increase and local component manufacturing expands.

This shift could lead to a more competitive environment where new entrants challenge traditional industry leaders.

Localisation to Play a Key Role

The affordability of a Rs1 million EV would largely depend on local production of components, particularly batteries and electronic systems, which account for a substantial portion of EV costs.

Greater localisation would not only reduce import dependency but also strengthen Pakistan’s engineering ecosystem by encouraging domestic manufacturing of critical components.

A Vision Yet to Be Realised

While the announcement has generated significant interest, further details about the vehicle—such as its manufacturer, specifications, range, and production plans—have yet to be disclosed.

Industry observers note that achieving a Rs1 million price point would require innovative design, strong localisation, and supportive government policies.

Nevertheless, if such a vehicle successfully reaches the market, it could mark an important milestone in Pakistan’s transition toward affordable electric mobility and a more competitive automotive sector.

and eco-friendly vehicles. Among the latest innovations are Plug-In Hybrid Electric Vehicles (PHEVs) — cars that combine traditional petrol engines with electric power to reduce fuel consumption, cut emissions, and give drivers greater flexibility in everyday use. Several PHEVs are currently locally assembled and available in Pakistan, including the powerful Tiggo 9 PHEV from Chery, the well-established MG HS PHEV, the capable Haval H6 PHEV, and emerging alternatives like the Dongfeng Forthing Friday (a range-extended hybrid).

This article explains why the Tiggo 9 PHEV stands out in the local market by comparing its performance, technology, range, comfort, safety, and value against its key rivals.

Can PHEVs be the Future in Pakistan!

Pakistan’s rising fuel costs, developing charging infrastructure, and evolving government policies on hybrid vehicles have made PHEVs increasingly attractive. PHEVs allow daily commuters to run on electric power for short city trips — reducing petrol costs — while retaining a petrol engine for long highway journeys. This removes “range anxiety” that pure electric cars still face due to limited charging stations. Because PHEVs are now assembled locally by several groups, buyers benefit from lower pricing, better after-sales support, and easier parts availability, compared with fully imported models.

Meet the Key Players

An overview of the main PHEVs currently assembled or launching in Pakistan:

1. Chery Tiggo 9 PHEV

• Flagship luxury PHEV from Chery Pakistan, locally assembled.
• Triple motor + 1.5 L turbo powertrain with high performance & range.
• Premium interior design and advanced technology.

2. MG HS PHEV

• One of the first locally assembled PHEVs in Pakistan.
• Focus on balance of fuel efficiency and city driving usability.
• Affordable entry point into hybrid SUV ownership.

3. Haval H6 PHEV

• A larger and more powerful hybrid SUV from GWM’s local assembly line.
• Emphasizes dynamic performance and comprehensive ADAS features.

4. Dongfeng Forthing Friday (Not a traditional PHEV but a Range-Extended Electric Vehicle)

• Uses a petrol generator to recharge the battery, delivering extended range while running fully on electric drive.
• A newer entrant, still building its service and parts support locally.

Market Trust & Local Investment

One important factor in choosing any vehicle is confidence in the brand and its support network in Pakistan. Local assembly plants and distributors play a major role in this:

• Chery Pakistan (Master Motors) has invested heavily in local assembly and dealer support, making PHEVs like Tiggo models more cost-effective and easier to maintain.
• MG Pakistan pioneered locally assembled PHEVs here and drew attention for making hybrid tech more affordable.
• Sazgar Engineering Works, in partnership with GWM, assembled the H6 PHEV and expanded it to AWD variants.
• Dongfeng’s Friday platform, though promising, is newer and its local service infrastructure is still forming.

In practical terms, local assembly often means shorter wait times, lower final prices (after taxes and duties), and better parts availability — important factors for long-term ownership.

Why Tiggo 9 PHEV Should Be Your Top Choice

With the basic comparison in mind, here are the key reasons the Tiggo 9 PHEV edges ahead of its competitors:

1. Best-in-Class Electric Range

The Tiggo 9’s claimed pure electric range (~145 km WLTP) is significantly higher than most rivals, including the MG HS and H6 PHEV. For many buyers, this means daily city driving without using petrol at all — reducing fuel costs and emissions.

This range is especially valuable in Pakistan where public charging stations are limited; users can rely on home charging and use fuel only for long trips.

2. Exceptional Combined Range for Road Trips

Tiggo 9 PHEV’s combined range — nearly 1,200 – 1,400 km — makes it ideal for not just city driving but also long road trips across the country without frequent refueling. This stretches far ahead of many competitors currently available locally.

3. Superior Power and Performance

With 610 hp and 920 Nm, Tiggo 9 PHEV is one of the most powerful hybrid SUVs in Pakistan’s lineup. This level of output gives drivers confident overtaking performance, robust highway cruising, and strong towing ability — all without compromising comfort.

4. Comprehensive Safety & Tech Suite

Safety remains paramount, and Tiggo 9 PHEV comes packed with advanced ADAS features, 10 airbags, 360-degree cameras, autonomous parking assist, and more — exceeding the basic ADAS packages found on some rivals.

Moreover, modern infotainment and connectivity options enhance daily usability, making it more enjoyable for both driver and passengers.

5. Luxury Comfort for Families

Unlike many five-seater ICE & PHEVs, Tiggo 9 PHEV is a true 7-seater, making it perfect for larger families, group travel, and weekend trips. Premium features such as massaging seats, panoramic sunroof, heated and ventilated seating, and 14 Sony speakers premium audio place it at the top of its class in terms of comfort.

Is the Higher Price Worth It?

It’s true that the Tiggo 9 PHEV sits in a higher price bracket than some competitors like the MG HS PHEV. However, given its performance, range, features, safety, and practicality, it offers value that extends far beyond its price — especially for buyers who plan to use the SUV as a daily family vehicle and a long-range traveler.

In many ways, the extra investment translates to long-term savings: less petrol consumption, better safety, and fewer compromises on comfort and tech.

Conclusion

The plug-in hybrid market in Pakistan is finally becoming mature, with choices spanning affordable entries to premium offerings. Amid this transformation, the **Tiggo 9 PHEV emerges as a clear leader for those seeking a versatile, powerful, and future-ready SUV. Its strong electric range, long combined driving range, advanced technology, and family-oriented features make it the most complete PHEV on offer locally.

While models like MG HS PHEV and Haval H6 PHEV offer excellent value or strong performance in their own rights, the Tiggo 9 combines the best of all worlds — performance, comfort, technology, and practicality — making it an ideal choice for Pakistani customers who want more from their next SUV purchase.

A rough Comparison of Tiggo 9 vs local Rivals

(Specs summarized and averaged from multiple sources — official figures may vary by model and variant.)

This exclusive article has been published in Automark Magazine’s March-2026 printed and digital edition. Written by Aqeel Bashir

Service Long March Tyres (Private) Limited (SLM), a prominent subsidiary of Service Indus-tries Limited (SIL), has officially announ-ced its intention to launch an Initial Public Offering (IPO) and list on the Pakistan Stock Exchange (PSX).

The announcement was addressed to the General Manager of the PSX and the Executive Director of the Securities & Exchange Commission of Pakistan (SECP), confirming the board’s strategic decision to go public.

SLM is a key player in Pakistan’s heavy-duty tyre segment and is recognized as the pioneer in manufacturing all-steel radial truck and bus (TBR) tyres in the country. The upcoming IPO is expected to provide the company with the capital required to expand operations, upgrade facilities, and strengthen its competitive position against both domestic and imported alternatives.

The move reflects a broader strategy by the Servis Group to unlock the value of its high-growth businesses while offering institutional and retail investors the opportunity to participate in its growth.

Analysts note that the listing of a company of SLM’s stature could significantly enhance the representation of Pakistan’s industrial and automotive sectors on the PSX, providing investors with more diversified options.

Focusing on zero-emission vehicles like the Model T and Model U

Mitsubishi Fuso Truck and Bus Corporation (Mitsubishi Fuso) and Hon Hai Technology Group (Foxconn) have announced plans to create a standalone bus company in Japan to accelerate the development of competitive zero-emission buses.

Scheduled to be established in the second half of 2026, the new original equipment manufacturer (OEM) will combine Mitsubishi Fuso‘s design and manufacturing expertise with Foxconn‘s zero-emission vehicle (ZEV) technology and global partnership network.

“We are excited to join forces with Foxconn. This collaboration will combine the strengths of both parties to accelerate our transformation in the bus sector. By combining Fuso and Foxconn’s extensive experience and technological know-how, we will offer customers state-of-the-art solutions for public transport, thereby contributing to society both in Japan and abroad,” said Karl Deppen, CEO of Mitsubishi Fuso.

Mitsubishi Fuso and Foxconn have previously signed a memorandum of understanding to explore strategic cooperation in clean mobility. Both companies plan to cooperate on the development, production, supply chain management, and sales of ZEV buses through their respective subsidiaries, Mitsubishi Fuso Bus Manufacturing Co., Ltd. (Fuso Bus) and Foxtron Vehicle Technologies (Foxtron). The initiative will begin with the Foxtron-developed Model T and Model U.

“Mobility is a strategic priority for Foxconn,” said Jun Seki, Foxconn‘s Chief Strategy Officer for EVs. “This collaboration with Mitsubishi Fuso will provide a comprehensive electrification solution for Japan’s transportation ecosystem. This approach will significantly shorten development cycles and enhance cost-efficiency.”

#MitsubishiFuso #Foxconn #FusoBus #Foxtron #ElectricBus #Automark

Pakistan’s automotive sector is set for a potential major expansion as Japan advances plans for a large-scale auto investment initiative expected to generate more than 100,000 direct and indirect jobs while significantly boosting local manufacturing and supplier development.

According to industry sources, the proposed framework places strong emphasis on increasing localisation of automotive components to as much as 60 percent — a move that could transform Pakistan’s domestic auto parts industry and strengthen the country’s manufacturing base. The plan is also expected to expand Japan’s industrial footprint across vehicle production, engineering, logistics, and vendor development.

Major Boost for Local Suppliers

The localisation push is being viewed as one of the most impactful elements of the initiative. By encouraging domestic production of parts and components, the plan is expected to create new opportunities for local manufacturers, engineering companies, and small-to-medium enterprises involved in the automotive supply chain.

Industry stakeholders believe the move could reduce reliance on imported components while helping Pakistani suppliers integrate into global automotive production networks through technology partnerships and quality upgrades.

Focus on Modern Manufacturing Standards

As part of the expansion, both sides are reportedly exploring the implementation of globally recognized Japanese manufacturing methodologies such as Kaizen and 5S workplace systems, aimed at improving efficiency, safety, and operational discipline across production facilities.

The introduction of these systems is expected to modernize Pakistan’s automotive manufacturing environment, promote continuous improvement, and raise overall product quality to international standards.

Green and Hybrid Technology Alignment

The initiative is also aligned with global automotive trends, with a focus on environmentally sustainable mobility solutions, including hybrid and green vehicle technologies. Industry analysts note that incorporating such technologies could help Pakistan keep pace with evolving global markets while improving fuel efficiency and environmental performance.

Experts believe that early adoption of hybrid platforms may serve as a transitional step toward broader electrification strategies in the future, positioning Pakistan’s industry within the global shift toward cleaner mobility solutions.

Economic Impact and Workforce Development

The projected employment generation — estimated at more than 100,000 jobs — is expected to extend beyond direct manufacturing roles to include opportunities in logistics, training, engineering services, vendor networks, and technology integration.

In addition, workforce training and knowledge transfer programs are anticipated to play a key role in preparing Pakistan’s young labor force for advanced manufacturing environments, particularly in automation, quality management, and sustainable production practices.

Policy Stability Remains Key

While the announcement has generated optimism within the automotive sector, industry observers emphasize that long-term policy stability, consistent industrial regulations, and infrastructure readiness will be essential to ensure successful implementation of the mega investment.

Analysts note that predictable taxation frameworks, energy reliability, and government-industry collaboration will be critical factors in attracting sustained foreign investment and ensuring the long-term viability of new manufacturing operations.

Industry Awaits Formal Announcements

Although detailed timelines and company-specific announcements are yet to be formally disclosed, the potential scale of the investment is already being viewed as one of the most significant developments in Pakistan’s automotive landscape in recent years.

If realized, the initiative could mark a major step toward transforming Pakistan into a more competitive regional automotive manufacturing hub — driven by localisation, advanced production systems, and alignment with global green mobility trends.