Automark

In the first part of our article, published in the previous edition, we explored Pakistan’s potential to revolutionize its transportation sector by transitioning to electric vehicles (EVs). The discussion centred on the New Energy Vehicle (NEV) Policy 2025-2030, highlighting key elements such as subsidies, incentives, and strategies aimed at overcoming challenges to EV adoption.

In this continuation, we delve deeper into actionable steps, emerging trends, and innovative strategies to address consumer concerns, focusing on affordability, infrastructure, and aftersales support. This article also emphasizes the importance of fostering public-private partnerships and leveraging international expertise to build a robust EV ecosystem in Pakistan.

Progress since Policy Introduction

Since the launch of the NEV policy, several key initiatives have been undertaken to accelerate EV adoption:

1. Policy Implementation Gains
   • Reduction in EV charger tariffs by 44%, making charging affordable for consumers.
   • Introduction of subsidies for motorcycles and three-wheelers, reducing upfront costs.
   • Partnerships with international players like SERES, BYD,DEPAL, and Dewan Motors to enhance local production capabilities.
2. Consumer Awareness Programs
   • Nationwide campaigns highlighting the environmental and economic benefits of EVs.
   • Demonstration projects showcasing EV efficiency and cost savings.
3. Infrastructure Expansion
   • Installation of new EV charging stations in metropolitan areas and along major highways.
   • Pilot projects for battery-swapping stations to reduce charging downtime.

Persistent Consumer Challenges

Despite these gains, several consumer-centric challenges need immediate attention to ensure the widespread adoption of EVs:

1. Affordability of EVs
   • High Initial Costs: Even with subsidies, EVs remain expensive for middle-income households.
   • Lack of Financing Options: Accessible financing for EV purchases is still limited.
2. Limited Charging Infrastructure
   • Inadequate coverage of charging stations, particularly in rural and semi-urban areas.
   • Concerns over long charging times and the availability of compatible chargers.
3. Battery Longevity and Replacement Costs
   • Consumers remain apprehensive about battery lifespan and the high cost of replacements.
   • Limited local production of batteries further inflates costs.
4. Technical Support and Repairs
   • A shortage of skilled technicians capable of diagnosing and repairing EVs.
   • Limited aftersales support and service centres equipped to handle EV-specific issues.

Strategies to Address Consumer Challenges

1. Enhancing Affordability and Financing

• Expanded Subsidy Programs: Introduce targeted subsidies for low-income households, focusing on high-use vehicles like motorcycles and rickshaws.
• Flexible Financing: Collaborate with banks to offer low-interest loans with longer repayment terms.
• Tax Incentives for Consumers: Reduce sales tax on EV purchases to further lower costs.

2. Expanding Charging Infrastructure

• Government-Led Infrastructure Development: Prioritize the installation of charging stations in underserved regions through public-private partnerships.
• Fast-Charging Networks: Incentivize the development of ultra-fast charging stations to reduce charging times.
• Battery-Swapping Solutions:Promote the establishment of battery-swapping stations as a quick and efficient alternative to traditional charging, especially for two-wheelers and auto rickshaws. This solution is already under discussion with institutions like LUMS, reflecting its potential to address the needs of high-usage, cost-sensitive segments of the market. Battery-swapping reduces downtime and is particularly advantageous for vehicles requiring frequent refuelling, such as delivery bikes and public transport rickshaws.

3. Addressing Battery Concerns

• Local Battery Manufacturing:Encourage tax breaks and grants for companies investing in domestic battery production for long run. However, the initial phase of local manufacturing might lead to higher battery prices due to limited scale and higher production costs. While global battery prices are projected to decrease in the near future, the challenge of passing cost savings to consumers remains a concern.
• Battery Leasing Models:Introduce battery leasing or subscription models to reduce the upfront purchase cost for consumers. This approach allows users to pay for battery usage over time, making EVs more accessible and financially viable.
• Second-Life Battery Use: Develop programs to repurpose used EV batteries for energy storage solutions, reducing waste.

4. Building Technical Capacity

• Workforce Development Programs: Establish training centers to equip technicians with the skills needed for EV diagnostics and repair.
• OEM Partnerships: Collaborate with manufacturers to provide certified training programs for local service centres.
• Digital Tools: Promote the use of diagnostic tools and mobile apps for remote troubleshooting and support.

Emerging Opportunities in Pakistan’s EV Landscape

1. Local Innovation Hubs
   • Establish EV innovation hubs to foster R&D in battery technology, charging systems, and lightweight vehicle designs.
   • Support start-ups with grants and access to testing facilities.
2. Export Potential
   • Leverage low labor costs to position Pakistan as a regional manufacturing hub for EV components.
   • Export locally manufactured motorcycles, batteries, and chargers to neighbouring countries.
3. Integration with Renewable Energy
   • Combine solar and wind energy projects with EV charging stations to ensure cost-effective and sustainable power supply.
   • Deploy micro grids to power rural charging stations using renewable sources.

Consumer-Focused Roadmap for EV Success

To build a thriving EV ecosystem, consumer confidence must be at the center of all initiatives. Here’s a five-step roadmap to achieving this goal:

1. Awareness and Education: Launch a comprehensive public awareness campaign on the benefits and long-term savings of EVs.
2. Incentivize Early Adoption: Provide additional perks for early adopters, such as free registration, reduced tolls, and discounted parking.
3. Reliable Infrastructure: Ensure the availability of charging stations across urban and rural areas.
4. Skilled Support: Develop a network of certified service centers to handle EV maintenance and repairs.
5. Policy Transparency: Maintain regular communication about policy updates and progress to build trust among consumers and investors.

Key Takeaways:

Pakistan’s transition to electric vehicles (EVs) is a monumental step toward sustainability, with the potential to significantly reduce environmental degradation, save foreign exchange, and improve urban air quality. To accelerate EV adoption and unlock the full benefits of green mobility, the country must address critical consumer challenges such as affordability, infrastructure development, and comprehensive aftersales support.

The success of the National Electric Vehicle (NEV) Policy 2025–2030 relies on creating synergies among the government, private sector, and international partners. With the right strategies implemented at the right time by the right people, Pakistan can revolutionize its transportation landscape and serve as a model for other developing nations pursuing sustainable growth.

This exclusive article has been published in Automark’s February-2025 printed and digital edition, written by Asif Mehmood

Dear Reader Pakistan’s automotive market is experiencing an exciting phase of innovation and expansion, as both established brands and new entrants continue to introduce state-of-the-art vehicles. In this article, we’ll take a closer look at some recently launched and upcoming vehicles that are set to redefine the driving experience in Pakistan: the MG HS Plug-in Hybrid Electric Vehicle (PHEV), Hyundai Sonata N-line 2500cc Turbo, and the highly anticipated 5th generation Kia Sportage HEV long-wheelbase. Additionally, we’ll examine these vehicles’ USPs (Unique Selling Propositions) and customer feedback from international markets, offering insights into what Pakistani consumers can expect.

MG HS PHEV: Redefining Green Luxury

The MG HS Plug-in Hybrid Electric Vehicle (PHEV) has made a remarkable entrance into the Pakistani market. This eco-friendly SUV combines luxury, performance, and cutting-edge technology, aiming to cater to environmentally conscious drivers seeking style and comfort.

USPs of the MG HS PHEV

1. Hybrid Powertrain: The MG HS PHEV is equipped with a 1.5-liter turbocharged engine paired with a 90kW electric motor, delivering a combined output of 258 horsepower. This hybrid setup allows for reduced emissions and impressive fuel efficiency.
2. Electric-Only Range: One of its standout features is the ability to travel up to 52 kilometers on pure electric power, making it an excellent choice for daily urban commutes.
3. Luxury Interior: The cabin features high-quality materials, a panoramic sunroof, ambient lighting, and a 10.1-inch infotainment system with Apple CarPlay and Android Auto.
4. Safety First: Advanced safety features like adaptive cruise control, lane-keeping assist, and autonomous emergency braking provide peace of mind for drivers and passengers alike.

International Customer Feedback

Globally, the MG HS PHEV has received favorable reviews for its combination of affordability and premium features. Customers appreciate its smooth hybrid performance, spacious interior, and competitive pricing compared to other hybrid SUVs. However, some have noted that its electric-only range could be longer to compete with higher-end hybrids. Overall, it’s seen as a strong contender in the mid-range hybrid SUV segment.

In Pakistan, the MG HS PHEV’s introduction signals a shift towards greener mobility, offering a practical and luxurious alternative for consumers looking to reduce their carbon footprint without compromising on style or performance.

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Hyundai Sonata N-Line 2500cc Turbo: A Performance Beast

Hyundai has been making waves globally with its innovative and stylish offerings, and the Sonata N-Line 2500cc Turbo is no exception. Combining elegance with a sporty edge, this mid-size sedan caters to enthusiasts who crave both performance and comfort.

USPs of the Hyundai Sonata N-Line

1. Powerful Engine: The heart of the Sonata N-Line is a 2.5-liter turbocharged GDI engine producing an impressive 290 horsepower and 311 lb-ft of torque, paired with an 8-speed dual-clutch transmission.
2. Dynamic Design: The N-Line’s aggressive styling includes a distinctive front grille, quad exhaust tips, and 19-inch alloy wheels, giving it an athletic stance.
3. Advanced Technology: Features like a 12.3-inch digital instrument cluster, a 10.25-inch touchscreen infotainment system, wireless smartphone charging, and a premium Bose sound system elevate the driving experience.
4. Enhanced Handling: With N-Line-specific suspension tuning and larger brakes, the Sonata offers a more engaging and responsive drive.

International Customer Feedback

In international markets, the Sonata N-Line has garnered praise for its excellent balance between performance and practicality. Drivers have highlighted its robust acceleration, refined interior, and cutting-edge technology as major positives. Some critics, however, feel that its ride quality could be slightly firmer than expected for a sedan of its class.

As this sporty sedan makes its way to Pakistan, it’s poised to attract buyers who value performance and luxury. The Sonata N-Line is a statement vehicle that could redefine perceptions of what a mid-size sedan can offer.

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Upcoming: 5th Generation Kia Sportage HEV Long Wheelbase

Kia’s Sportage has been a crowd favorite globally, and the upcoming 5th generation Sportage HEV long-wheelbase model is set to take the SUV game to a whole new level in Pakistan. With its futuristic design, hybrid efficiency, and extended wheelbase for added space, this SUV promises to be a game-changer.

USPs of the 5th Gen Kia Sportage HEV

1. Hybrid Powertrain: The new Sportage HEV combines a 1.6-liter turbocharged engine with a 44.2kW electric motor, delivering a total output of 226 horsepower. The hybrid system ensures better fuel economy and lower emissions.
2. Bold Design: The long-wheelbase model features Kia’s new “Opposites United” design language, with striking LED headlights, a unique grille, and a sleek profile.
3. Spacious Interior: The extended wheelbase provides more legroom and cargo space, making it an ideal family SUV. High-end materials, a dual-screen cockpit, and advanced connectivity features add to its appeal.
4. Safety Innovations: Equipped with features like blind-spot collision-avoidance assist, forward collision warning, and a 360-degree camera system, the Sportage ensures top-tier safety.

International Customer Feedback

Globally, the 5th generation Sportage HEV has been lauded for its spaciousness, innovative design, and impressive hybrid performance. Customers in the US and European markets have expressed satisfaction with its smooth ride, intuitive tech features, and excellent fuel economy. Some have noted that the hybrid powertrain delivers sufficient power for most driving scenarios while maintaining quiet operation.

As this model prepares to enter the Pakistani market, it’s expected to resonate with buyers seeking a versatile and eco-friendly SUV that doesn’t compromise on style or performance.

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The Road Ahead: What These Vehicles Mean for Pakistan’s Auto Market

The introduction of these vehicles represents a significant step forward for Pakistan’s automotive industry. With the MG HS PHEV leading the charge in hybrid SUVs, Hyundai Sonata N-Line setting new standards in performance sedans, and the Kia Sportage HEV long-wheelbase redefining family SUVs, consumers have more options than ever to embrace modern, eco-conscious, and technologically advanced vehicles.

Moreover, these launches highlight the growing importance of environmentally friendly mobility solutions. As Pakistan grapples with urban congestion and pollution, hybrids and plug-in hybrids like the MG HS PHEV and Kia Sportage HEV offer practical solutions for reducing emissions without sacrificing convenience or comfort.

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Final Thoughts

Pakistan’s automotive landscape is evolving rapidly, and the arrival of these cutting-edge vehicles is a testament to the market’s potential. The MG HS PHEV, Hyundai Sonata N-Line, and upcoming Kia Sportage HEV long-wheelbase cater to diverse consumer needs, from eco-conscious drivers to performance enthusiasts and families seeking spacious and reliable SUVs.

As these vehicles hit the roads, they’re not just introducing new technologies and features but also reshaping consumer expectations. For Pakistani drivers, this is an exciting era of possibilities, with each new model paving the way for a greener, more innovative, and dynamic future.

This exclusive article has been published in Automark’s February-2025 printed and digital edition, written by Aqeel Bashir

United to launch Pakistan’s First Commercial NEV CKD & CBU Venture

This joint venture (JV) will introduce New Energy Vehicles (NEVs), including buses, light commercial vehicles (LCVs), and heavy-duty trucks (HDTs), to revolutionize the transport sector with sustainable, energy-efficient solutions for Pakistan.

Chairman Zahid Rafiq highlighted that this collaboration is a game-changer for Pakistan, bringing cutting-edge electric commercial vehicles while strengthening industrial growth.

The agreement, signed by Mr. Luis Liu, Business Head at GEELY and Mr. Imran Zahid, Executive Director of HRL-CSM, establishes plans for the sales and assembly of commercial vehicles.

Managing Director Jehanzaib Zahid emphasized that the venture is more than just vehicle Production. It’s about building an entire ecosystem to support sustainable commercial transportation!

Executive Director lmran Zahid outlined the long-term vision of integrating electric mobility with renewable energy, creating thousands of jobs and making eco-friendly transportation accessible to businesses and logistics providers. With CBU operations kicking off and a state-of-the-art CKD assembly plant in the pipeline, Pakistan is set to become a regional hub for commercial electric vehicles.

Dysin Automobiles Limited (DAL), established in June 2013, is a public limited company and the exclusive authorized dealer of China National Heavy Duty Truck Company (CNHTC), commonly known as SINOTRUK, in Pakistan .As part of the Dynamic Group of Companies, DAL imports, assembles, and market a wide-range of commercial vehicles, including Rigid Trucks, Prime Mover, Dump Truck and special vehicle chassis under the Sinotruk brand. Initially, from 2013 to mid-2016, DAL imported Completely Built Units (CBUs) for the local market after getting positive feedback, the company transitioned to local assembly by partnering with Adam Motor Company Limited in July 2016, utilizing their facility in Bin Qasim, Karachi, for Semi Knocked down (SKD) units

DAL’s headquarters are located in Lahore, with a nationwide presence that includes four regional offices. The company supports its operations with a robust dealer network comprising well-established 3S(Sales, Service, Spare parts) dealers across Pakistan. In addition to vehicle sales, DAL offers a comprehensive range of services, including vehicle inspections, after-sales support, pre-delivery and 24/7 services to their customers.

DAL’s CKD Plant: A Step Toward Growth

Dysin Automobiles Limited (DAL) has taken a monumental step in transforming Pakistan’s commercial vehicle industry through its Completely Knocked Down (CKD) assembly operations. Established in partnership with Sinotruk, one of the world’s leading heavy-duty truck manufacturers, DAL’s CKD plant is a shining example of innovation, local industry support, and economic progress.

Establishing the CKD Plant

In July 2016, DAL transitioned from importing Completely Built Units (CBUs) to locally assembling vehicles in Pakistan. Partnering with Adam Motor Company Limited, DAL set up its CKD plant in Karachi. This facility has since become the cornerstone of DAL’s operations, enabling the company to produce vehicles tailored to the specific needs of the Pakistani market.

The CKD plant’s will not only reduces the overall cost of production but also shortens delivery times and ensures adherence to high-quality standards. The plant has the capacity to produce a range of commercial vehicles, including heavy-duty trucks, light-duty trucks, and specialized vehicles for various industrial applications.

Advancing Local Industry

By establishing the CKD plant, DAL has made significant contributions to Pakistan’s industrial growth. The facility has:

• Created Jobs: Employing a skilled and semi-skilled workforce, the plant has generated numerous job opportunities in the region.
• Promoted Skill Development: Workers and engineers receive training to operate advanced machinery, fostering technical expertise.
• Import Substitution: Local Assembly of trucks will reduce reliance on fully imported vehicles.
• Technology transfer: The transfer of advanced manufacturing technology from China to Pakistan fosters innovation.
• Self-Reliance: By assembling trucks domestically, Dysin Automobiles helps reduce Pakistan’s dependency on foreign-made vehicles, promoting industrial self-sufficiency.
• Cost Efficiency: Locally assembled trucks are most cost effective, making them affordable for local businesses and enhancing competition.
• Overall Industrial Growth: Local assembling of trucks encourages the development of ancillary industries such as local parts suppliers, contractors, logistics, and maintenance services.

Additionally, the CKD setup allows for technology transfer from Sinotruk, enhancing the technological capabilities of the local automotive industry.

Meeting Market Demands

The CKD plant’s output caters to the diverse needs of Pakistan’s growing economy. From heavy-duty trucks for infrastructure projects to light-duty vehicles for urban logistics, the plant’s production capabilities ensure that DAL can serve a broad customer base. The ability to customize vehicles during assembly further enhances the value proposition for clients across various industries.

Nationwide Impact

The CKD plant is part of DAL’s larger strategy to establish a robust network across Pakistan. With its headquarters in Lahore and regional offices nationwide, DAL supports its customers with comprehensive after-sales services, including maintenance and spare parts availability. The plant’s operations integrate seamlessly with DAL’s 3S (Sales, Service, Spare parts) dealerships, ensuring that customers receive unmatched support.

Looking Ahead

Dysin Automobiles Limited’s CKD plant is more than just a manufacturing facility; it is a symbol of progress and innovation. As DAL continues to expand its operations, the plant will remain at the forefront of driving industrial growth in Pakistan. The company’s focus on local production, job creation, and environmental sustainability positions it as a leader in the country’s commercial vehicle sector.

Through its CKD plant, Dysin Automobiles Limited has demonstrated the potential of local assembly to transform industries and economies. The facility not only strengthens DAL’s market position but also underscores its commitment to contributing to Pakistan’s development. With its forward-looking approach, DAL is set to lead the way in shaping the future of transportation in the country.

Published in Automark’s January-2025 printed and digital edition

Electric vehicles (EVs) are increasingly recognized as a sustainable and efficient alternative to internal combustion engine (ICE) vehicles worldwide. They reduce dependency on fossil fuels, lower greenhouse gas emissions, and offer cost advantages in terms of fuel and maintenance. For Pakistan, transitioning to EVs is critical to achieving environmental goals, reducing its oil import bill, and addressing urban air pollution.

However, despite the government’s ambitious Electric Vehicle Policy 2025-2030, which envisions 30% EV penetration in passenger vehicles and the installation of 3,000 EV charging stations by 2025, progress has been slow. This article explores the challenges that hinder EV adoption in Pakistan and proposes practical solutions to foster a supportive ecosystem.

Challenges Hindering EV Adoption in Pakistan

1. Limited EV Penetration and Utilization

Currently, there are fewer than 2,000 EVs on Pakistan’s roads, with only a handful of operational charging stations. This low adoption rate discourages investment in charging infrastructure as operators struggle to achieve profitability. It mirrors the decline of compressed natural gas (CNG) stations, which faced similar utilization challenges.

2. High Upfront Costs of EVs

EVs in Pakistan are priced approximately 1.6 times higher than their ICE counterparts, primarily due to high import duties, lack of local manufacturing, and absence of government subsidies. This cost disparity reinforces the perception that EVs are a luxury item rather than a practical choice for middle-income households.

3. Inadequate Charging Infrastructure

• Home Charging Limitations:
  Many urban residents live in apartments or multi-story buildings without designated parking or access to electrical outlets for charging. This makes overnight home charging—a cost-effective and convenient option—unavailable for a significant portion of the population.
• Community and Public Charging:
  Public charging networks in Pakistan are underdeveloped. Existing stations often face operational issues, with an estimated 40% being non-functional. These challenges exacerbate range anxiety and the fear of running out of charge without access to a nearby station.
• Lack of Real-Time Information:
  Consumers often face difficulty locating functional charging stations due to the absence of a centralized system providing real-time updates on station availability, pricing, and functionality.

4. Policy and Regulatory Gaps

Pakistan’s EV policies are fragmented and lack cohesive implementation. The absence of region-specific policies, consumer-focused incentives, and mandatory regulations for infrastructure development hampers progress.

5. Skepticism About Viability

The slow pace of EV adoption has led to doubts about the profitability of investing in charging stations. The challenges faced by CNG station operators in the past fuel further skepticism.

Proposed Solutions to Accelerate EV Adoption

1. Expand Charging Infrastructure

• Home and Multi-Story Building Solutions:
  • Introduce mandatory regulations for new buildings to include EV charging infrastructure.
  • Retrofit existing residential complexes with shared charging facilities, with implementation costs borne by users but ensured by building owners.
• Community Charging:
  • Mandate that at least 10% of parking spaces in commercial areas, malls, workplaces, and residential complexes have EV chargers.
  • Convert underutilized petrol and CNG stations into EV fast-charging hubs to optimize existing infrastructure.
• Public Charging Networks:
  • Develop a centralized mobile app offering real-time updates on charging station availability, pricing, and status. This app should integrate with vehicle navigation systems for seamless route planning.

2. Introduce Government Incentives

• Financial Support for EV Buyers:
  • Offer subsidies, reduced registration fees, and low-interest financing options to make EVs more affordable.
  • Waive or reduce customs duties on EV imports until local manufacturing becomes viable.
• Support for Charging Infrastructure:
  • Provide tax incentives, grants, or subsidized electricity rates for businesses investing in charging stations.
  • Ensure a consistent electricity supply to charging networks, particularly in high-demand urban areas.

3. Enhance Policy and Regulatory Framework

• Streamlined EV Policies:
  • Develop a comprehensive EV roadmap integrating federal, provincial, and local government initiatives.
  • Include stakeholder input from automakers, energy providers, urban planners, and consumer groups in policy formulation.
• Regulated Pricing Mechanisms:
  • Set a cap on charging prices to ensure affordability and uniformity.
  • Introduce time-based pricing to encourage off-peak charging.

4. Raise Awareness Through Education Campaigns

• Launch mass campaigns to educate consumers about the environmental and economic benefits of EVs.
• Address misconceptions, such as EVs being unreliable or overly expensive, by highlighting long-term cost savings.

5. Leverage Increased Electricity Usage to Tackle Circular Debt

The adoption of EVs can contribute to alleviating Pakistan’s Independent Power Producer (IPP) circular debt, a chronic issue stemming from low electricity consumption and payment defaults. With increased electricity demand from EV charging, power plants will be compelled to produce more electricity, ensuring consistent operations and payment of dues.

A portion of the electricity costs will be borne by EV owners and charging station operators, creating a new revenue stream for utilities. This increased utilization of power generation capacity can enhance cash flows for IPPs, reducing circular debt and benefiting the broader energy sector.

6. Learn from Global Best Practices

Countries with successful EV adoption rates offer valuable lessons for Pakistan:

• Norway: Legislation mandates EV charging facilities in residential and community areas.
• Netherlands: Local governments collaborate with private companies to expand charging networks.
• China: Aggressive government support through subsidies and large-scale infrastructure development has positioned it as a global leader in EV adoption.

A Holistic Approach to Pakistan

To transform its EV landscape, Pakistan must adopt a multi-pronged strategy:

• Focus on consumer-centric policies and incentives to build trust in EV technology.
• Prioritize the development of a reliable charging infrastructure to address range anxiety and operational challenges.
• Leverage existing resources and infrastructure to reduce costs and accelerate implementation.
• Use the enhanced electricity demand from EVs as an opportunity to address the financial health of the power sector.

The government must align its goals with the needs of all stakeholders, ensuring that policies are practical, scalable, and inclusive.

Key Takeaways

Pakistan stands at a pivotal juncture in its journey toward sustainable mobility. By addressing challenges such as high costs, inadequate infrastructure, and fragmented policies, the country can pave the way for a cleaner, greener future.

A robust EV ecosystem is not just an ambition—it is a necessity for Pakistan’s economic and environmental sustainability.

This exclusive article has been published in Automark’s January-2025 printed and digital edition. Written by Asif Mehmood

Wishing all automotive professionals, enthusiasts, and Automark members a year 2025 marked with collaboration, resilience, and success as work to redefine the future of transportation. To innovation, progress, and drive the world forward—Happy New Year!

As we accelerate into 2025, the automotive industry stands at the forefront of transformative innovation and sustainable practices. The dawn of electric mobility, self-driving capabilities, and green manufacturing waits all in 2025.

The promise will be for a future of technology that walks hand-in-hand with environmental stewardship. Here’s to a transformative opportunity for the automotive industry’s visionary engineers, designers, and leaders whose efforts will shape the next generation of mobility. As we move ahead, let us embrace the principles of sustainability, innovation, and collaboration. We can achieve milestones that will redefine transportation and contribute to a cleaner, smarter, and more connected world. EV adoption is expected to rise with improved battery technology, expanded charging infrastructure, and government incentives.

Automakers will release more affordable, longer-range EVs to make electric mobility accessible. Autonomous vehicles in Level 4 and Level 5 will gain further ground in 2025, with pilot programs opening up to more urban settings. Advanced driver-assistance systems will become the norm, boosting safety and convenience. A strong focus on eco-friendly materials, energy-efficient manufacturing processes, and circular economy principles will also be strengthened. Carbon-neutrality goals will continue to challenge manufacturers to look for innovative ways to minimize emissions throughout the value chain.

The industry will also continue investing in upskilling and reskilling programs to prepare the workforce for advanced technologies and AI-driven systems. Acute collaboration with academia and training programs will ensure the next generation of automotive professionals will be prepared to lead transformation.

Let’s understand the key performance indicators critical to assessing performance, efficiency, and profitability of Aftersales Service operations in the automotive industry. A strong set of KPIs will help dealerships and service centers optimize processes, enhance customer satisfaction, and boost revenue. Monitoring and optimizing aftersales service KPIs is necessary for driving profitability, customer satisfaction, and long-term business success. Focusing on key metrics such as service retention, first-time fix rates, and workshop efficiency can turn after-sales operations into a reliable revenue stream for dealerships. A data-driven approach not only fosters loyalty but also ensures competitiveness in a rapidly evolving automotive industry.

In last month’s article on Service Absorption Rate (SAR), published in Automark Magazine, we explored the financial resilience of aftersales operations and its pivotal role in sustaining automotive dealerships. Earlier, the Fix It Right principle was highlighted as a cornerstone of operational excellence.

When these two concepts are interlinked, they form a robust strategy for ensuring profitability and customer satisfaction in the automotive aftersales segment, Service Absorption Rate (SAR) represents the percentage of a dealership’s fixed operating expenses covered by profits from aftersales services (service, parts, and accessories). A high SAR reflects a dealership’s ability to remain profitable even during fluctuations in vehicle sales. The intersection of Service Absorption Rate and Fix It Right principles demonstrates the power of embedding financial metrics with customer-centric practices. By striving toward operational efficiency and prioritizing customer satisfaction, dealerships can double their advantage: financial stability, and sustained customer loyalty.

As these concepts evolve, they will keep on being the benchmarks of excellence in the automotive after-sales industry, this month’s editions of Automark Magazine, let’s understand the Service Retention rate.  The Service Retention Rate (SRR) is not just a metric. It is a reflection of how well a service center or dealership meets and exceeds customer expectations. By focusing on quality, transparency, and customer-centric initiatives, businesses can enhance retention rates, driving long-term profitability and customer loyalty. The Service Retention Rate is the percentage of customers who return to a dealership or service center for repeat maintenance or repair services after their initial visit. It is a critical performance indicator in the aftersales segment, reflecting customer loyalty, satisfaction, and the effectiveness of retention strategies.

The formula for the computation of the Service Retention Rate:

Service Retention Rate (%) = (Number of Returning Customers / Total Number of Customers) x 100

Returning Customers: Those customers who come for service or repair within a stipulated period.

Total Customers: All customers serviced during the same period

The Service Retention Rate (SRR) is one of the most potent metrics to determine the success and sustainability of aftersales operations in the automotive industry. Dealerships can achieve higher retention rates through quality, convenience, and customer-centric strategies. Thus, investment in SRR improvement is not just a matter of financial returns but also building long-term relationships that can help to develop trust and brand advocacy.

Factors that Affect Service Retention Rate: Several interrelated factors influence the Service Retention Rate (SRR), which is vital for keeping customers satisfied, loyal, and returning for regular service. By focusing on providing high-quality service, creating a positive customer experience, using technological progress, offering competitive pricing, and maintaining transparency and trust, automotive businesses can raise their SRR and keep customers for life. Ultimately, a high SRR contributes to profitability, customer loyalty, and a reputation in the long run in the automotive industry.

Quality of Service: A Pillar of High Service Retention Rates: The quality of service offered at a dealership or service center is one of the key factors that determine the Service Retention Rate (SRR). Good quality service ensures customers find trust in the provider for value and are incentivized to return for more when needs arise again. Below, read further into how the actuality of service quality drives retention rates and ways to build its potential. Experienced, manufacturer-certified technicians who can cover regular maintenance and perform detailed repairs. Training programs regarding newer technologies, like electrical cars and ADAS advanced driver-assistance systems. The Dealership / Repair workshop shall use only authentic, manufacturer-approved parts for the vehicle’s reliability and longevity.

First-Time Fix Rate: ensuring that repairs and maintenance are done correctly the first time. Quality checks and audits regularly to avoid errors. A good service quality directly determines the SRR as customers will come back trusting you, feeling loyal, and having a good experience at your workshop. By focusing on qualified technicians, authentic parts, timely delivery, and open communication, an automotive service center will have high retention rates and build long-term relationships with its customers. In a competitive market, service quality delivered is the key differentiator to drive immediate and long-term success.

Customer Experience: The Heart of Service Retention: Customer experience (CX) is one of the most important factors that drive the Service Retention Rate (SRR). It includes every interaction a customer has with the dealership or service center, from initial contact to the completion of service. A positive experience fosters trust, loyalty, and a willingness to return for future services. Providing detailed explanations of diagnostics, repair processes, and costs, meaning to say have clear communication with customers. Customer experience is not just about providing good service; it’s about creating memorable and seamless interactions that exceed expectations.

A positive experience builds trust, drives loyalty, and encourages repeat business, significantly boosting the Service Retention Rate (SRR). By focusing on convenience, transparency, personalization, and continuous improvement, service centers can ensure customers return time and time, making CX a cornerstone of aftersales success.

Pricing and Offers: The Value Proposition in Service Retention: Pricing and offers are essential factors that determine the SRR. Customers expect value for money in terms of quality service, and well-crafted promotional offers can persuade them to come back for future needs. The key is finding the right balance between competitive pricing and profitability to sustain loyalty and improve the overall after-sales experience. Prices must be benchmarked against the competition, including independent garages and third-party service providers.

Discounts or packages tailored to individual customer profiles, such as loyalty rewards or age-based discounts for older vehicles. Bundled maintenance packages (e.g., oil change, tire rotation, and inspection) at a discounted rate to encourage repeat visits. Running targeted offers during specific times of the year, such as pre-winter vehicle checks or summer road trip packages. Points-based systems in which customers collect rewards for return visits to be redeemed against future services or accessories. Pricing and offers are much more than a monetary incentive. They show the value of a service center to its customers.

Maintaining competitive, transparent pricing along with a good design in promotional strategies helps dealerships enhance customer loyalty and thus increase the SRR. This helps customers gain satisfaction while increasing long-term profitability and growth in the fiercely competitive market of automotive after-sales.

Technological Integration: Redefining Retention in Automotive Services: This is now a hallmark element in affecting the SRR for the automobile industry. Employing advanced technologies, systems, and processes improves efficiency and personalizes services while adding to the satisfaction of a customer; hence, a key aspect of retention. A detailed elaboration is given on how technological innovation affects SRR and what service centers can do for effective incorporation of innovations in the customer car business. Appointment booking via mobile apps, websites, or service portals is also provided at the client’s discretion. The technological assimilation into the automotive after-sales arena brings forth unprecedented possibilities to enhance SRRs.

By accepting digital tools and processes, service centers can provide outstanding customer experience, proactive maintenance, and solutions customized for a particular vehicle. While there are challenges, the strategic implementation of technology leads to long-term customer loyalty and sustained growth in the competitive automotive market.

Effect of Brand Perception on Service Retention Rate (SRR): A good brand reputation makes customers return for services instead of looking elsewhere. A good brand perception develops a relationship of trust between the customer and the service center. The chances of return service are higher if customers trust that the brand will provide reliable, transparent, and quality service. Brand perception is a vital element in shaping the Service Retention Rate (SRR).

A positive perception encourages customers to return, fosters loyalty, and ensures they choose the service center over competitors. Service providers need to focus on consistent quality, transparency, personalized experiences, and continuous engagement to build a strong brand that not only attracts new customers but also retains existing ones for the long term. In this way, automotive businesses can drive customer satisfaction, improve service retention, and ensure sustainable growth.

Takeaway from this article:

Service Retention Rate (SRR) is a critical metric for the long-term success and sustainability of any automotive business, particularly in aftersales service. A high SRR signifies that customers are satisfied with the service provided, trust the brand, and are likely to return for future needs. This, in turn, leads to increased profitability, stronger customer loyalty, and a competitive advantage in a crowded market. Other elements determining SRR are the level of service, customer satisfaction, technology, price, and perception of the brand.

Therefore, if superior services are offered in a very personalized way, at very competitive prices, and on more efficient technologies, the level of SRR for the automotive business can be greatly improved. In essence, service retention is not just about a repeat visit but also to build long-term relationships between the two parties involved built upon trust, transparency, and value. Businesses that work on enhancing their SRR can expect to have stronger customer loyalty, better word-of-mouth referrals, and a more stable revenue stream. Therefore, prioritizing SRR should be a key focus for any automotive service center looking to sustain growth and success in the ever-evolving market.

Dear Readers the automobile industry, an engine of economic progress and technological innovation, finds itself at a pivotal juncture. Established automobile assemblers and their associated vendors, who have spent billions on localization, plant setup, and human resource training, may be observing a shift in regulatory priorities favoring new ventures. Such initiatives might aim to invigorate competition and stimulate growth, they also raise pertinent questions: Are regulators inadvertently sidelining the pioneers who laid the groundwork for industrial development? And if so, what does this mean for the broader ecosystem that thrives on their contributions?

Investments of Established Players: A Foundation for Growth

The contributions of entrenched automobile assemblers and vendors are monumental. These organizations have invested substantial resources in setting up state-of-the-art manufacturing facilities. Localization, in particular, has been a cornerstone of their strategies, enabling them to:

1. Reduce Costs: By sourcing materials and components locally, companies have mitigated the impact of currency fluctuations and import duties.
2. Build Expertise: Localization fosters a skilled workforce adept at managing complex manufacturing processes.
3. Boost the Economy: Local vendors benefit from the trickle-down effects, creating jobs and driving regional development.

Such investments are not confined to physical infrastructure. The human element plays a pivotal role. Established players have devoted years to training employees, nurturing technical and managerial talent that aligns with global standards. These efforts have collectively positioned the industry as a competitive force in international markets.

Challenges Posed by Regulatory Shifts

While the rationale behind prioritizing new entrants may stem from a desire to foster innovation, diversify the market, and encourage competition, it also introduces several challenges for established firms:

1. Financial Pressure

Investments by vendors in localization related parts and plant setups by assemblers are often recouped over decades. If market dynamics shift too abruptly, established players may find it difficult to achieve the projected return on investment. This is particularly concerning when newer ventures are given incentives that incumbents did not receive during their formative years.

2. Market Share Erosion

New ventures, backed by favorable policies, might gain a competitive edge. This could result in a loss of market share for existing companies, disrupting their economies of scale and leading to increased unit costs.

3. Workforce Implications

A decline in the fortunes of established players can have ripple effects on employment. Vendors reliant on these companies may also face reduced orders, affecting their financial stability and workforce.

4. Supply Chain Disruption

The automobile industry thrives on a well-oiled supply chain. Disrupting this equilibrium to accommodate new ventures can strain relationships between assemblers and vendors, causing inefficiencies and delays.

Regulatory Perspectives: A Balancing Act

From a regulatory standpoint, nurturing new ventures is essential for long-term growth. However, this must be balanced against the risk of alienating established players. Policymakers need to consider:

1. Historical Contributions

Regulations should reflect an appreciation for the groundwork laid by incumbents. This includes acknowledging their role in developing a skilled workforce, fostering innovation, and contributing to national economic growth.

2. Level Playing Field

Incentives for new ventures should not create an uneven playing field. Instead, policies should encourage fair competition, ensuring that all players—old and new—can thrive.

3. Collaborative Ecosystem Development

Rather than focusing exclusively on new entrants, regulators can create policies that promote collaboration. Established players and new ventures can work together to enhance technological capabilities, optimize supply chains, and share best practices.

Vendor Perspectives: An Overlooked Stakeholder?

The ripple effects of regulatory changes on vendors deserve special attention. Local suppliers form the backbone of the automobile industry, and their fortunes are intricately tied to those of assemblers. If established companies face challenges, vendors may encounter:

• Order Reductions: A decline in production volumes for assemblers can directly impact vendor revenues.
• Investment Hesitancy: Vendors may hesitate to invest in new technologies or capacity expansions if market stability is in question.
• Employment Concerns: Many vendors operate with thin margins and rely on consistent orders. Disruptions can lead to layoffs, affecting thousands of workers.

Strategies for Harmonizing Growth and Stability

To address these concerns, regulators and industry players can adopt a multi-pronged approach:

1. Transparent Policy Frameworks

Policies must be transparent and predictable, allowing all stakeholders to plan their investments and operations effectively. This includes:

• Clear guidelines on incentives for new ventures.
• Recognition of the contributions of established players.
• Mechanisms for periodic consultation with industry stakeholders.

2. Incentivizing Innovation Across the Board

Rather than favoring specific entrants, incentives can be structured to reward innovation. Established players investing in advanced manufacturing techniques or sustainable practices should receive support comparable to that offered to newcomers.

3. Strengthening Vendor Ecosystems

Special attention should be paid to vendors. Initiatives such as low-interest loans, skill development programs, and technology grants can enhance their resilience, ensuring they can adapt to changes in the market.

4. Encouraging Public-Private Partnerships

Collaboration between the government and industry can yield mutually beneficial outcomes. For instance, public-private partnerships can:

• Fund research and development initiatives.
• Develop shared infrastructure, such as testing facilities.
• Promote exports through joint marketing efforts.

5. Continuous Stakeholder Engagement

Creating platforms for dialogue between regulators, assemblers, vendors, and other stakeholders can help preempt conflicts and foster a sense of shared purpose.

The Road Ahead

The evolving priorities of regulators in the automobile industry present both opportunities and challenges. While the emphasis on new ventures can stimulate competition and drive innovation, it is imperative to ensure that the contributions of established players are not overshadowed. These companies have been the bedrock of the industry, shaping its trajectory and contributing significantly to economic and social progress.

A balanced approach—one that harmonizes the aspirations of new entrants with the interests of incumbents and vendors—is essential for sustainable growth. Policymakers, industry leaders, and stakeholders must work collaboratively to navigate this transition, ensuring that the industry remains a robust engine of progress for decades to come. In doing so, they will not only preserve the legacy of past achievements but also lay the groundwork for a vibrant and inclusive future.

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

Former Suzuki Motor Corp. Chairman, Osamu Suzuki, passed away on December 25, 2024, the automaker has confirmed. He was 94. The automotive icon died of lymphoma, Suzuki confirmed in a statement, leaving a strong legacy for the global giant with major operations in India. Osamu Suzuki is credited for spearheading the brand’s entrance into the Indian market, which now contributes the largest share of Suzuki’s global sales.

Under his guidance, Suzuki Motor Corporation expanded significantly. When he first became president in 1978, the company had around 300 billion yen in sales. By 2006, that number had grown to over 3 trillion yen. Suzuki also played a crucial role in establishing a dominant presence in India through its subsidiary Maruti Suzuki, which controls a significant share of the Indian car market.
Despite his many successes, Suzuki’s tenure was not without challenges. In 2016, the company faced a scandal over improper fuel efficiency testing methods. Following this incident, he stepped down as CEO but remained as chairman until 2021.

MG Motor has achieved a significant milestone with the launch of its locally assembled MG HS PHEV, TRUE HYBRID ELECTRIC. Led by Syed Asif Ahmed, General Manager – Marketing Division, this launch underscores MG’s dedication to introducing advanced automotive technology to Pakistan. As the nation’s first locally assembled Plug-in Hybrid Electric Vehicle (PHEV), the MG HS PHEV signifies MG’s commitment to pushing the boundaries of automotive innovation in the region.

A Fusion of Style and Technology

The MG HS PHEV, TRUE HYBRID ELECTRIC seamlessly blends cutting-edge engineering with a sophisticated design, setting a new benchmark for the local automotive industry.

Delivering on Promised Time

The timely launch of the MG HS PHEV demonstrates MG’s commitment to fulfilling customer expectations. With deliveries already underway, the brand ensures smooth access to its innovative offerings.

Redefining Hybrid Driving

As a “True Hybrid Electric Vehicle,” the MG HS PHEV boasts impressive features including 52+kilometer electric range, a 16.6 kWh battery, regenerative braking, and external charging capabilities, providing a combined fuel mileage of upto 58.8KM/L. These features combine to provide a seamless and efficient hybrid driving experience

Embracing New Energy Vehicles

The introduction of the MG HS PHEV reaffirms MG’s focus on New Energy Vehicles (NEVs). This strategic move aligns with the company’s vision of integrating advanced mobility solutions into Pakistan’s automotive market.

Experience Future of Mobility

MG invites customers and enthusiasts to visit their dealerships to experience the MG HS PHEV up close. Launched at a price of PKR 9,899,000, the vehicle currently offers an exclusive early bird deal at PKR 9,499,000. This groundbreaking model embodies the future of hybrid mobility, highlighting the cutting-edge potential of advanced automotive technologies.

Shaping the Future of Pakistan’s Automotive Landscape

The launch of the MG HS PHEV underscores MG’s commitment to delivering innovative vehicles that meet the evolving needs of modern drivers. With this launch, MG continues to shape the future of Pakistan’s automotive landscape, offering products designed to inspire and excite.