Automark

DEAR READERS, This article explores the history of Geely, its ownership structure across multiple automotive brands, its shareholdings, global ranking, and the performance of its star models, especially in the growing electric vehicle (EV) segment.

Introduction

In today’s fast-changing automotive world, one name that has rapidly climbed the global ladder is Geely. Once a small private company in China, Geely has transformed itself into one of the most influential automotive groups worldwide. It is not only known for producing affordable cars but also for owning and investing in some of the most respected global automotive brands.

Geely’s journey reflects China’s broader industrial rise—from imitation to innovation, and from local markets to global dominance. Today, the company stands as a symbol of how strategic investments, technology adoption, and global partnerships can reshape an entire industry.

History of Geely: Humble Beginnings to Global Expansion

Geely was founded in 1986 by Li Shufu in China. Interestingly, the company did not start as a car manufacturer. It began as a refrigerator parts producer and later moved into motorcycles in the 1990s.

In 1997, Geely entered the automobile industry, becoming one of the first private Chinese companies to manufacture cars. At that time, China’s auto market was dominated by state-owned enterprises and foreign joint ventures. Geely’s entry marked a shift toward private innovation.

The real turning point came in 2010, when Geely acquired Volvo Cars from Ford. This bold move shocked the global automotive industry. Many doubted whether a Chinese company could manage a premium European brand. However, Geely proved critics wrong by revitalizing Volvo, improving its technology, safety, and global sales.

Since then, Geely has followed a strategy of global acquisitions and partnerships, turning itself into a multi-brand automotive conglomerate.

Geely’s Ownership of Automotive Brands and Shareholding Structure

Geely’s strength lies in its diverse portfolio of brands, ranging from mass-market vehicles to luxury cars and electric mobility solutions.

Major Brands Owned or Controlled by Geely

1. Geely Auto (Core Brand)
   • Parent company flagship
   • Focus: Affordable and mid-range vehicles
   • Fully owned
2. Volvo Cars
   • Ownership: ~82% (major controlling stake through Geely Holding)
   • Focus: Premium vehicles and safety innovation
3. Polestar
   • Ownership: Approx. 48–50% (via Geely + Volvo combined influence)
   • Focus: High-performance electric vehicles
4. Lotus Cars
   • Ownership: ~51% (majority stake)
   • Focus: Luxury sports cars and EV hypercars
5. Lynk & Co
   • Ownership: Joint venture (Geely + Volvo)
   • Focus: Connected vehicles and subscription-based mobility
6. ZEEKR
   • Ownership: Fully controlled by Geely
   • Focus: High-end electric vehicles
7. Proton
   • Ownership: 49.9% stake
   • Focus: Southeast Asian markets
8. smart (Joint Venture with Mercedes-Benz)
   • Ownership: 50% Geely
   • Focus: Compact electric cars
9. LEVC
   • Ownership: Fully owned
   • Focus: Electric taxis and commercial vehicles
10. Farizon

• Focus: Electric trucks and logistics vehicles

This diversified structure allows Geely to cover all segments—from budget cars to luxury EVs, and from passenger vehicles to commercial fleets.

Business Strategy: “One Geely” Vision

Geely operates under a unified strategy often referred to as “One Geely.” This approach integrates research, technology, and manufacturing across all brands.

Key pillars include:

• Shared EV platforms
• AI-powered vehicle systems
• Global supply chains
• Cross-brand innovation

This strategy has helped Geely reduce costs while maintaining brand uniqueness.

Global Ranking and Market Position

Geely has grown into one of the largest automotive groups in the world.

• Total vehicle sales in 2025: over 3.02 million units
• Group-wide (multiple brands) sales exceeded 2.95 million units in first 9 months of 2025 alone
• Ranked among the top 10 global automotive groups (by volume and influence)

Geely is also:

• One of China’s largest EV manufacturers
• A major competitor to companies like BYD and Tesla in the EV space
•  

Star Models and Sales Performance

Geely’s success is driven by a mix of internal combustion engine (ICE) models and rapidly growing EVs.

1. Best-Selling Traditional Models

• Geely Xingrui / Emgrand Series
• Geely Boyue (SUV)
• Geely Binyue (Compact SUV)

These models continue to perform strongly, with ICE vehicles contributing over 1.21 million units in 2025

2. Star Electric & Hybrid Models (EV Focus)

Geely’s EV segment is the fastest-growing part of its business.

Key EV Highlights (2025):

• Total EV & hybrid sales: 1.68 million units
• Growth rate: +90% year-on-year

Popular EV Models:

• Geely Xingyuan (EX2)
  • Over 530,000 units sold cumulatively
• Geely E5 (EX5)
  • Over 160,000 annual sales
• ZEEKR 001 & ZEEKR 009
  • Premium EV segment leaders
  • ZEEKR total sales: 220,000+ units in 2025
• Lynk & Co 900 (Hybrid SUV)
  • 50,000+ units in 6 months

These models show Geely’s ability to compete across price segments—from affordable EVs to luxury electric vehicles.

Global Presence and Market Expansion

Geely is no longer limited to China. It has built a strong international footprint.

Global Reach:

• Present in 88 countries and regions
• Over 1,200 global sales outlets
• Strong markets:
  • Europe (UK, Germany, Sweden)
  • Southeast Asia (Indonesia, Malaysia)
  • South America (Brazil)
  • Middle East & Africa

Expansion Strategy:

• Local manufacturing plants (e.g., Egypt, Indonesia)
• Strategic partnerships (e.g., Renault in Brazil)
• EV-focused exports

Geely aims to sell 640,000 vehicles overseas by 2026, showing its aggressive globalization plans

Role in the Electric Vehicle Revolution

Geely is heavily investing in EV technology and smart mobility.

Key Innovations:

• AI-powered driving systems
• Advanced battery safety technology
• Satellite communication for vehicles
• Smart cockpit systems

The company has also launched a “Full-Domain AI” system, integrating:

• Autonomous driving
• Connectivity
• Data intelligence

This positions Geely as a technology-driven automaker rather than just a manufacturer.

Strengths and Competitive Advantages

1. Strong                                                                   Brand                                                   Portfolio
   Covers all segments from budget to luxury
2. Global                                                                   Acquisitions                                       Strategy
   Revived brands like Volvo and Lotus
3. Rapid                                                                    EV                                                           Growth
   One of the fastest-growing EV producers
4. Cost                                                                                                                                       Efficiency
   Shared platforms across brands
5. Innovation                                                                                                                          Focus
   AI, electrification, and connectivity

Challenges

Despite its success, Geely faces several challenges:

• Intense competition from Tesla and BYD
• Managing multiple global brands
• Profitability issues in some subsidiaries (e.g., Polestar)
• Regulatory pressures in international markets

Conclusion

Geely’s journey from a small Chinese company to a global automotive giant is nothing short of remarkable. Through strategic acquisitions, innovation, and a strong focus on electric vehicles, it has positioned itself as a leader in the future of mobility.

With over 3 million annual vehicle sales, a presence in nearly 90 countries, and a rapidly expanding EV portfolio, Geely is shaping the next era of the automotive industry.

Its success story is not just about cars—it is about vision, adaptability, and global ambition. As the world moves toward sustainable transportation, Geely is set to remain a key player in driving that transformation.

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

Grow Automotive Grow Pakistan – Learning from the Past – Earning from the Present – Growing from the Future Episode: 10

Now, in the next few articles, we will examine the automotive market in Pakistan in general and the situation of the EV market in particular. In my initial articles, it was made clear that the automotive sector started with electric vehicles, and now, after almost a century and a half, the automotive industry and market are once again shifting towards electric vehicles based on modern technology of the new era, and it is hoped that in the coming years, electric vehicles will replace IC engines. 

Public Trust Building in Adoption of EV

With the passage of time, the forecast of EV is becoming true. Awareness is coming among the public and the public has started accepting EVs to a large extent in the auto sector. Similarly, many leading automotive companies are introducing many models of their own EV vehicles in the Pakistani market. While many new models of EVs are coming in the auto market, a new problem has arisen for customers.

Unclear Options and Confusions

While buying an EV, they are finding it difficult to decide by selecting the model according to their needs and preferences. Because there are many types of EVs, there are also many types of EV models, about which customers don’t know much due to being new technology and they seem quite confused while making a decision. Therefore, I thought that first of all, the basic technology related to EVs and the technology given in the models available in Pakistan should be explained in simple words so that buyers can easily and confidently select the model.  So let’s start with EV technology and then continue the discussion on EV models available in Pakistan.

Common Types of EV

Electric vehicles (EVs) are generally classified into four main types based on their powertrain: Battery Electric Vehicles (BEVs), which run entirely on electricity; Plug-in Hybrid Electric Vehicles (PHEVs), which combine a battery and gas engine with plug-in capability; Hybrid Electric Vehicles (HEVs), which use a motor to assist a gas engine without plugging in; and Extended Range Electric Vehicle (EREV), which use electric motor to drives the wheels, and a small IC engine acts as a generator to recharge the battery.

1. Battery Electric Vehicle (BEV): These all-electric vehicles rely solely on rechargeable battery packs (no gasoline engine) and produce zero emissions. They are charged via an external power source. Examples: Tesla Model 3, Nissan Leaf, Chevy Bolt.
2. Plug-in Hybrid Electric Vehicle (PHEV): These vehicles use both an electric motor (powered by a battery) and an internal combustion engine. They can be plugged in to charge but also run on gasoline for longer ranges. Examples: Toyota RAV4 Prime, Ford Escape PHEV.
3. Hybrid Electric Vehicle (HEV): Conventional hybrids use both a petrol engine and an electric motor. They cannot be plugged in; the battery is charged through regenerative braking and the engine. Examples: Toyota Prius, Hyundai Ioniq Hybrid.
4. Extended Range Electric Vehicle (EREV): A type of EV where the electric motor drives the wheels, but a small internal combustion engine acts as a generator to recharge the battery when it runs low, providing a longer range than a standard BEV. 

These vehicles are becoming increasingly popular, offering options ranging from daily city driving with zero emissions (BEVs) to long-distance, versatile driving (PHEVs/HEVs). A Battery Electric Vehicle (BEV) is a fully electric vehicle powered exclusively by electricity stored in an onboard high-voltage battery pack, driving an electric motor without any internal combustion engine or fuel dependency. BEVs produce zero tailpipe emissions, require external charging, and utilize regenerative braking to enhance efficiency.

1. Battery Electric Vehicle (BEV)

A Battery Electric Vehicle (BEV) is a Fully Electric Vehicle Powered exclusively by Rechargeable lithium-ion Battery Packs, containing No Internal Combustion Engine, Fuel Tank, or Exhaust System. Relying solely on electricity from the grid, BEVs offer Zero-Emissions, Quiet n Vibertion Free Driving, and Lower Maintenance.

Key Aspects of BEVs

• Propulsion: Electricity is stored in high-capacity, on-board batteries, driving one or more electric motors for acceleration.
• Charging: Batteries are recharged via external power sources, ranging from domestic sockets (slow) to public DC fast chargers (fast).
• Efficiency: BEVs are highly efficient, converting a higher percentage of energy into vehicle movement compared to combustion engines.
• Performance: Known for instant torque, providing quick acceleration, regenerative braking to boost efficiency.
• Range: While heavily affected by cold weather, modern BEVs frequently provide over 400 Kms of range.

BEV Market Trends in Pakistan (2025-2026):

As of early 2026, the Battery Electric Vehicle (BEV) market in Pakistan is experiencing a transition from niche, luxury-oriented adoption toward a more diverse, albeit cautious, market. While 2025 marked a turning point with increased model launches and the entry of major Chinese manufacturers, the market is currently balancing high enthusiasm for lower running costs against infrastructural limitations and concerns over resale value.

• Dominance of Chinese Manufacturers: The market is heavily influenced by the entry of Chinese giants, with BYD leading in market excitement following its 2024 debut, offering competitive models like the Atto 3 and Seal. Other players like MG, HAVAL, Chery and others are expanding their footprint, diversifying choices beyond high-end luxury, and moving toward mid-range SUVs.

BEV Popular Models in Pakistan: 

BYD Atto 3 

The BYD Atto 3 is a compact electric SUV featuring a 49.92 kWh to 60.48 kWh Blade Battery (depending on region/variant) providing a range up to 420-480 km (WLTP). Priced around PKR 8.99 million in Pakistan, it offers a 150 kW/310 Nm motor, 0-100 km/h in 7.3–7.9 seconds and high-tech safety.

MG ZS EV

The 2026 MG ZS EV is an electric SUV offering up to 440 of range with a 72kWh battery option, or a 51kWh standard range model, with prices ranging from PKR 9,690,000, positioning it as an affordable, family-friendly EV option in several markets.

Honri Ve

The Honri Ve is an electric vehicle (EV) that is locally assembled in Pakistan by Dewan Farooque Motors Limited (DFML). Honri Ve 2.0 (approx. 200km range) and Honri Ve 3.0 (approx. 300km range) priced with a significant discount, VE 2.0 av at Rs. 3,599,000 and VE 3.0 at Rs. 4,399,000. These prices represent a reduction of Rs. 600,000, valid for limited stock.

Deepal S07/L07

The Deepal S07 SUV (crossover) and L07 (sedan) were officially launched in Pakistan in August 2024 by Master Changan Motors Limited (MCML). As a premium electric brand under Changan Auto, the company introduced these models as completely built-up (CBU) units to mark their entry into the local high-end electric vehicle market.  Both vehicles feature a claimed range of over 500 km. PKR 14.99 million, this RWD SUV features a 66.8 kWh battery, offering a ~485 km range, 255 HP, and a fastback design with frameless doors.

Audi e-tron

The Audi e-tron is a premium, fully electric luxury SUVs and GT sports cars that combines high-performance electric driving with advanced technology and sophisticated design. Available models in Pakistan include the Q8 e-tron (used prices ranging from PKR 3.85–4.75 crore) and the new Q6 SUV e-tron Signature (priced at PKR 2.78 crore). Key features include Quattro all-wheel drive, high-capacity batteries, and fast-charging capabilities

Geely Riddara (RD6)

Capital Smart Motors is showcasing the Geely Riddara (RD6), a high-performance electric pickup with a 455 km range with price starting from PKR 13,299,000. Variant: BEV (Fully Electric), Battery Pack 86 kWh, Range Approximately 455 km, Performance 0–100 km/h in 4.5 seconds, and1030 kg loading capacity.

2. Extended Range Electric Vehicle (EREV/REEV)

Extended Range Electric Vehicles (EREV) and Range-Extended Electric Vehicles (REEV) are essentially the same technology, featuring a battery-electric powertrain with a small petrol/gasoline engine that acts solely as a generator to recharge the battery. Unlike conventional hybrids, the engine does not drive the wheels directly.

Key Aspects of EREV/REEV

• How They Work: The vehicle is powered by electricity from a battery and electric motor. When the battery is low, a “range extender” (engine) turns on to generate electricity and charge the battery while driving.
• Difference from PHEVs: While Plug-in Hybrids (PHEV) often use the engine to directly drive the wheels (parallel), EREVs use a series-connected structure where the engine is only a generator.
• Advantages: They Eliminate Range Anxiety, offering longer driving ranges than typical BEV and PHEV.
• Driving Experience: They provide the responsiveness and smooth acceleration of an EV, as the engine does not directly affect acceleration

EREV Market Trends in Pakistan

The Extended Range Electric Vehicle (EREV) market in Pakistan is experiencing a significant, driven by the need to overcome “range anxiety” associated with pure battery electric vehicles (BEVs). This shift is highlighted by the recent introduction of specialized models boasting extensive total driving ranges, with 2025–2026 being a crucial turning point for adoption, infrastructure growth, and local assembly initiatives. 

• Arrival of REEVs and Long-Range Models: The market has officially entered the Range Extended Electric Vehicle era with the launch of models like the Forthing Friday REEV, which offers a total driving range of 1,150 km.
• Major Brand Entry: Chinese EV giant BYD is partnering with Mega Conglomerate to set up a factory in Karachi by mid-2026, launching models with extended ranges that include both battery-electric and plug-in hybrid options.
• Segment Diversification: 2025 saw a shift from experimental models to a wider range of options, including compact city cars (Gigi, Honri), luxury EVs, and family-friendly SUVs, with Deepal S07 and L07 already on the market.
• Overcoming Range Anxiety: EREVs are seen as offering all-electric city driving with a gasoline-powered generator for long-distance, intercity travel.
• Rising Fuel Costs: Extreme increases in petrol prices make the lower operating costs of EREVs are highly attractive.

EREV Popular Models in Pakistan:

1-Deepal S05 REEV (Master Changan Motors)

The Deepal S05 REEV, produced by Master Changan Motors in Pakistan, is a groundbreaking Range-Extended Electric Vehicle, with volume production starting in early 2026. This SUV offers a combined range exceeding 1,000 km, powered by a 215 HP (160 kW) motor with a RWD and a 1.5L Range Extender Engine.  

• Range: Approximately 155 km – 200 km in pure EV mode, with a combined range often exceeding 1,000+ km.
• Fuel Efficiency: ~20-24 KM/L (city/highway).

Price: As of Feb 2026, the S05 REEV Premium is priced around PKR 9,999,000 (ex-factory, excluding freight). 
 

2. Forthing Friday REEV (CSM) 

Capital Smart Motors (CSM) has reduced the price of the Forthing Friday Range Extender Electric Vehicle (REEV) to PKR 9,999,000 (a PKR 1 million reduction) until March 31, 2026. This 5-seater SUV offers up to 1,150 km total range (combined battery and engine), and features a 57.8 kWh battery, 201 hp output.

• Range: It features a 31.9 kWh battery for pure electric driving (up to 600 km), with a 1.5L range extender petrol engine.
• Features: Includes Level 2 ADAS, a 14.6-inch infotainment display, and a 360-degree camera.
• Price: Pre-launch pricing was announced at PKR 10,999,000 for the REEV variant. 

We will continue to provide knowledge and information about modern automobiles, mobiles and electric vehicles. In the next installments, we will give complete details about other EV models, especially HEV and PHEV, so that customers who buy EVs can decide to adopt EVs with their own needs and mental and emotional satisfaction. Stay connected with Auto Mark. Until the next article, may Allah bless you.

نئی خواہشوں کی ہوں وادیاں

وہاں کم ہی فکر معاش ہو

سر سبز ہوں جہاں منزلیں

وہیں خوب تر کی تلاش ہو

Mega Motor Company (MMC), the official partner of BYD in Pakistan, marked another milestone in the country’s growing New Energy Vehicle (NEV) market by delivering 100 Atto 2 vehicles to customers nationwide in a single day.

Building on the momentum of BYD’s earlier launches and deliveries in Pakistan, this nationwide delivery milestone reflects the increasing adoption of electric mobility and the growing presence of BYD vehicles on roads across the country.
The deliveries were carried out simultaneously across multiple cities through BYD experience centers and dealerships, highlighting the expanding footprint of BYD’s customer and retail network in Pakistan.
Designed for urban mobility, the BYD Atto 2 offers a practical and cost-efficient electric driving solution for consumers seeking an alternative to conventional fuel vehicles. At a time of rising fuel costs, the vehicle combines affordability with advanced technology, modern design, and everyday practicality, making electric mobility more accessible to a wider segment of drivers.
In addition to the Atto 2, BYD recently introduced its flagship Sealion 7 in Pakistan, with deliveries already underway. Together, these models reflect BYD’s expanding new energy vehicle portfolio in the country, offering advanced electric mobility solutions across different segments while strengthening the company’s presence in Pakistan’s evolving EV market.
Commenting on the milestone, Lei Jian, Country Head, BYD Pakistan, said:
“Pakistan represents an important market in BYD’s global vision for new energy mobility. As we continue to expand our portfolio here, our focus remains on making advanced electric vehicle technology accessible to more customers while supporting the country’s transition toward cleaner and more sustainable transportation.”
Danish Khaliq, Vice President Sales & Strategy at BYD Pakistan-Mega Motor Company, added:
“Reliability and customer trust are central to the BYD experience. As more BYD vehicles take to the roads across Pakistan, our priority is to ensure that customers receive not only advanced electric vehicles, but also a seamless ownership journey supported by strong service and customer care. The encouraging pace of EV adoption and the growing number of BYD vehicles already on the road reflect the increasing confidence Pakistani consumers have in electric mobility.”
A customer receiving their Atto 2 at the delivery event shared their experience:
“The whole process from booking to delivery was very smooth, and it feels great to finally receive the car. Getting the delivery just before Eid makes it even more special for my family. The team kept us informed throughout, and the experience at the delivery event was very well organised.”
With more vehicles now reaching customers across the country, BYD-MMC expects to further accelerate the adoption of electric mobility in Pakistan, offering consumers a practical and efficient alternative to traditional fuel-powered vehicles.

• PRESS RELEASE

Suzuki Pakistan has set a defining shift in the country’s automotive landscape with the unveiled of the Suzuki Fronx Pakistan’s first-ever XUV (Crossover Utility Vehicle). Designed to bridge the space between compact hatchbacks, entry-level sedans, and traditional SUVs, the Fronx reflects a new approach to mobility that aligns with modern mobility lifestyles.

The XUV category focuses on combining style, comfort, efficiency, and everyday usability. Unlike conventional SUVs that prioritize size and ruggedness, or sedans that emphasize ride comfort utility or practicality alone, the XUV strikes a balance between the two. With the Fronx, Suzuki becomes the first automaker in Pakistan to define and lead this new category, reinforcing its reputation as a forward-looking brand.

Visually, the Fronx delivers a strong and contemporary design identity. The exterior features signature LED DRLs, auto-adjusting headlamps, a bold front fascia, and a coupe-inspired silhouette, giving the vehicle a sporty yet sophisticated appearance. Its elevated stance enhances road presence while maintaining modern practicality.

Inside the cabin, the Fronx offers a premium, driver-focused layout designed for both comfort and convenience. A 9-inch infotainment system with Android Auto and Apple CarPlay ensures seamless connectivity, while the spacious interior layout supports daily commuting as well as longer journeys. Each design element reflects Suzuki’s commitment to blending aesthetics with functional innovation.

Powering the Fronx is Suzuki’s globally proven 1.5L K-Series engine, known for its smooth performance, reliability, and efficiency. The integration of hybrid technology further enhances fuel efficiency, a critical factor for Pakistani consumers navigating rising fuel costs.

Safety and technology are key strengths of the Fronx. The vehicle comes equipped with 6 airbags, ABS, and ESP, along with an advanced hybrid system that supports stable and efficient urban driving. These features position the Fronx among the most comprehensively equipped vehicles in its segment.

The Suzuki Fronx is a globally validated product, with successful launches and strong consumer acceptance across India, Japan, Asean, Latin America, Africa, and other international markets. Its international success is driven by proven engineering, strong reliability credentials, and a balanced value proposition.

Suzuki Pakistan will introduce the Fronx as a CKD unit, underlining its commitment to localization and long-term market sustainability. CKD production ensures better quality control, competitive pricing, availability of spare parts, and long-term ownership peace of mind.

When compared to imported JDM vehicles such as Aqua, Raize, and Rocky, as well as traditional sedans, the Fronx offers a clear ownership advantage. Backed by Suzuki’s unmatched brand trust, an extensive nationwide dealership and after-sales network, and localized manufacturing, the Fronx stands out in a market where reliability and resale value matter most.

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