Automark

The Punjab government has taken a major step toward promoting sustainable mobility and reducing carbon emissions by launching the CM Punjab Green Credit Program. As part of this initiative, motorcyclists who convert their petrol bikes into electric vehicles—or purchase brand-new electric bikes—will be rewarded with up to Rs. 100,000.
The announcement was made by Senior Provincial Minister Marriyum Aurangzeb in August 2025. The program aims to encourage citizens to shift from fossil fuel-based transportation to environmentally friendly alternatives, aligning with Pakistan’s broader climate goals.
How the Incentive Works
The Rs. 100,000 reward is disbursed in two stages:

1. Initial Verification: A portion of the incentive is released once the bike (converted or newly purchased) is verified under the program.
2. Mileage Completion: The remaining amount is credited after the rider achieves a defined mileage target, tracked through the Green Credit App.
   This ensures that the subsidy benefits genuine users who actively contribute to lowering emissions, rather than one-time claimants.
   Beyond Electric Bikes – A Broader Green Vision
   The Green Credit Program is not limited to e-bikes. It allows citizens to earn credits—and financial rewards—for various eco-friendly activities, including:
   Converting petrol motorcycles to EVs
   Purchasing new electric bikes
   Planting trees
   Transitioning to LED lighting and energy-efficient practices
   By broadening the scope, the government is aiming to in still a culture of environmental responsibility across multiple aspects of daily life.
   Why This Matters
   With motorcycles being the most widely used mode of transport in Punjab, their fuel consumption and emissions significantly impact urban air quality. Encouraging a shift to EVs will not only help cut carbon emissions but also reduce dependence on costly fuel imports.
   Moreover, the financial reward acts as a strong incentive for the masses, especially for students, delivery riders, and low-income groups who rely heavily on two-wheelers for mobility and livelihood.
   Looking Ahead
   The launch of the Green Credit Program signals Punjab’s commitment to building a cleaner, greener, and more affordable transportation system. By linking cash incentives with measurable eco-friendly actions, the government is creating a results-driven approach to sustainability.
   If successfully implemented, this program could accelerate EV adoption in Pakistan, set a benchmark for other provinces, and contribute meaningfully to the country’s fight against climate change.

This exclusive article has been published in Automark Magazine’s September-2025 printed and digital edition. Written by @asif-mehmood

August 25, 2025 Karachi, Pakistan – Wafi Energy Pakistan, the exclusive licensee of Shell fuels and lubricants in the country, announced the launch of the new and improved Shell V-Power, marking a major milestone in premium fuel innovation for Pakistan’s motorists. With Shell’s century-long legacy of technical leadership, the enhanced Shell V-Power is a fuel designed with cutting-edge technology to deliver more power and better engine performance for our customers.

This launch is a continuation of Shell’s 78-year legacy in Pakistan, a journey that began in 1947 as Burmah Shell. Over the decades, Shell has played a foundational role in shaping the country’s energy landscape — from powering some of Pakistan’s first major industries, to contributing to national infrastructure projects. Shell has also pioneered innovations in Pakistan, including constructing the country’s first retail station using recycled plastic.

In 1970, Burmah Shell became Pakistan Burmah Shell, and in 1993 it evolved into Shell Pakistan Limited. Today, as Wafi Energy Pakistan, the company brings together Shell’s global expertise with Wafi Energy’s vision to be a long-term energy partner for Pakistan. Wafi Energy, a Middle Eastern company and Shell’s exclusive licensee in Saudi Arabia, is committed to driving economic growth, fostering innovation, and delivering advanced energy solutions tailored to local needs.

A representative from the Royal Embassy of Saudi Arabia in Pakistan shared:

“The entry of Wafi Energy into Pakistan reflects the deepening bond between Saudi Arabia and Pakistan. We congratulate Wafi Energy for bringing an innovative premium fuel to the market. And we wish the company success in upholding Shell’s legacy and becoming a shining example for other foreign companies hoping to enter Pakistani market.”

Javaid Akhtar, Director on the Board of Wafi Energy Pakistan, added:

“The introduction of the new Shell V-Power is a testament to our promise of delivering the best in performance, efficiency, and innovation to our customers in Pakistan. This is more than just a fuel launch — it is an investment in the country’s mobility future.”

Looking ahead, Wafi Energy sees Pakistan as a country of immense potential — with its young population, growing industries, and strategic importance in the region. Wafi Energy will continue to invest and innovate in the energy sector, support communities through sustainable initiatives, and help shape a future-ready energy landscape that meets the evolving needs of the nation.

—xxx—-

About Wafi Energy Pakistan Limited

Wafi Energy Pakistan Limited (formerly Shell Pakistan Limited) is a licensee for Shell in Pakistan. Wafi Energy Pakistan is majority owned by Wafi Energy Holding Limited (“Wafi Holding”).

In 2024, Wafi Holding acquired an 87.78% stake in Shell Pakistan Limited, marking its entry into the Pakistani market. This transition represents more than just a change in ownership; it signals a strategic foreign GCC investment aimed at expanding the country’s energy and fuel retail industry infrastructure. It is important to note that an associated company to Wafi Holding has an agreement with Shell Brands International AG to be the sole representative of the Shell brand for fuel stations in Saudi Arabia. The strategic acquisition in Pakistan allows Wafi Holding to expand its energy business and strengthen its presence in the country, where Shell has a 77+ year history.

Wafi Energy Pakistan stands as one of the oldest and established energy partners in the industry and a leading player in the lubricants market in Pakistan. The company has a network of 600+ Shell retail sites, countrywide oil terminal facilities, Lubricants oil blending plant, and a broad portfolio of global Shell Lubricant brands including Helix, Rimula and Advance lubricants. The company is the largest private investor in the strategic White Oil Pipeline operated by Pak-Arab Pipeline Company (PAPCO). With a legacy since 1947 in the country, developing and distributing energy by land, air and sea, the company has endeavored to support Pakistan’s developmental priorities.

The investment by Wafi Holding, an Arabian Gulf company, marks a significant milestone in Pakistan’s energy sector. Wafi Holding’s entry into Pakistan’s oil marketing industry is poised to advance the competitive landscape, bringing in growth, expertise, innovative solutions, and a long-term commitment to sustainable energy development.

The Cabinet Committee on State-Owned Enterprises (CCoSOEs) has approved

The Cabinet Committee on State-Owned Enterprises (CCoSOEs) has approved a series of significant board appointments across major public sector organizations, including the Trading Corporation of Pakistan (TCP), Pakistan Reinsurance Company Limited (PRCL), and the Small and Medium Enterprises Development Authority (SMEDA). The committee also reviewed reforms in the Scientific and Technological Development Corporation and called for improvements in the board appointment process of state-owned enterprises.
Chaired by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb via video link, the meeting was held at the Ministry of Finance. It was attended by Federal Ministers Mian Riaz Hussain Pirzada (Housing and Works) and Jam Kamal Khan (Commerce), along with the SECP Chairman, federal secretaries, and senior officials from relevant ministries and institutions.
The committee reviewed and approved the Ministry of Commerce’s proposal to fill vacant positions on the board of TCP. Asim Aziz Siddiqui was endorsed as Chairman of the TCP Board, Ayesha Aziz was appointed as an Independent Director, and Shoaib Mir Memon was confirmed as Chairman of the PRCL Board.
Further, the committee directed all relevant ministries, including the Ministry of Finance, to review and improve the process of board appointments. It emphasized that the selection process must begin well in advance of any upcoming vacancies to avoid administrative gaps and ensure organizational continuity.
On the recommendation of the Ministry of Communications, the committee also approved the appointment of three ex-officio members to the Board of Directors of Postal Life Insurance Company Limited. It instructed the ministry to propose one of the independent directors as chairman to enhance the board’s effectiveness and advance decisions regarding the company’s restructuring and potential privatization.
In another development, the committee evaluated and approved the Ministry of Industries and Production’s proposal to reconstitute SMEDA’s board. Six independent directors from the private sector were appointed, representing all provinces and key sectors: Saif Ali Rustgar (Punjab), Mashhood Khan (Sindh), Usman Saifullah Khan (Khyber Pakhtunkhwa), Israr Khan Kakar (Balochistan), Asiya Sahil Khan (women’s representation), and Dr. Syed Zahoor Hassan (development sector).
Additionally, the committee was briefed on the restructuring of the Scientific and Technological Development Corporation of Pakistan, which will now operate under the new name “Institution for Research and Development in Applied Areas” (IRADA), in line with a previous committee decision.
Chairing the session, Senator Aurangzeb appreciated the reform initiative, stating that it aims to enhance the efficiency of the institution. He expressed confidence that IRADA will fulfill its mandate and play a meaningful role in advancing the national innovation system.

Source: PTV

REEV introduces a smarter electric experience, one where performance meets confidence, and every mile is powered with ease.

Range-Extended Electric Vehicle (REEV), also known as an Extended-Range Electric Vehicle (EREV), is a type of electric vehicle that primarily runs on electricity stored in a battery pack. To extend the driving range, it incorporates a range extender, typically a small gasoline engine that acts as a generator to recharge the battery while driving. Unlike plug-in hybrid electric vehicles (PHEVs), the range extender in a REEV does not directly power the wheels; it only charges the battery.

Here’s a more detailed breakdown:

How it works:

Electric Propulsion:

The vehicle’s wheels are solely driven by an electric motor, powered by a battery pack.

Range Extender:

When the battery charge is low, a smaller, fuel-powered engine (often gasoline) starts up and acts as a generator, replenishing the battery’s charge.

No Direct Wheel Drive:

The range extender engine does not directly power the wheels; it only generates electricity to recharge the battery.

Grid Charging:

REEVs can also be plugged in and charged from the electrical grid, just like battery electric vehicles.

Key Characteristics:

Extended Electric Range:

The primary benefit is the ability to drive a significant distance using only electric power before the range extender is needed.

Reduced Emissions:

When operating in electric-only mode, REEVs produce zero tailpipe emissions.

Flexibility:

The range extender allows for longer trips without the range anxiety associated with pure battery electric vehicles.

Series Hybrid Configuration:

The architecture of a REEV is often referred to as a “series hybrid” because the engine is only used to generate electricity for the electric motor.

Lower Maintenance (potentially):

Since the range extender engine doesn’t need to handle high power demands during acceleration, it can be smaller and potentially more efficient, leading to lower maintenance requirements.

Cost:

REEVs may have a higher initial cost compared to traditional gasoline vehicles or even some PHEVs.

Examples:

BMW i3 REx: One of the most well-known examples of a REEV, though no longer available as a new car, according to Green Car Guide.

Chevrolet Volt: Another popular REEV, also discontinued, according to GuangcaiAuto.

Ram 1500 Ramcharger: A more recent example of a range-extended electric pickup truck.

About the source

This overview was generated with the help of AI. It’s supported by info from across the web and Google’s Knowledge Graph, a collection of info about people, places and things. Generative AI is a work in progress and info quality may vary.

The Automark April 2025, my article gets to the point: Pakistan’s journey toward localization of the automobile industry is beset with challenges, but the inherent advantages, lower prices for automobiles, additional employment, and less reliance on imports for a more robust economy make it a necessary pursuit. The takeaway from the last article highlights that although top-class strategies, policy consistency, and industry engagement are essential beginnings, realizing sustainable localization involves resolving deeper systemic challenges. Although the path to complete localization is recognized as being challenging, the article is optimistic. With the right push, interventions at the right moments, and a combined effort by all stakeholders, Pakistan can fully localize its auto industry, which would flow into tangible rewards for its economy and buyers, and allow it to become an important player in the regional auto industry. The challenge, “So, what do you think, can Pakistan localize to the fullest?” necessarily invites the reader to adopt this positive but challenging vision.

The Pakistan automotive local industry’s quest for complete independence and emergence as a key regional participant rest directly on the large-scale enactment of technology transfer and localized component production. It is not simply an economic desire but a survival need for local suppliers and a strategic requirement for the country’s economic primacy. Today, the industry is confronted with major challenges: varying government policies, a lack of technological capabilities among the local vendor base, high dependency on foreign raw materials, and difficulty in attaining economies of scale. These contribute to the increased cost of production and disallow the local players to compete fairly, which consequently affects the affordability of the vehicle at the consumer level.

Localization within Pakistan’s automotive industry is challenging but critical. Although development has been held back by policy instability, technology deficiencies, import-substituting inputs, a shallow vendor base, and high cost of production, the potential is revolutionary: reduced vehicle prices to consumers, local job generation, capability building in industry, diminished dependency on imports, and enhanced macroeconomic strength. The way ahead is conditional upon concerted action among the government, OEMs/assemblers, tiered vendors, financial institutions, and academia/technical training institutions. With proper incentives, project approvals, and skills pipeline, Pakistan can shift from SKD/CKD dependence to genuine localization and regional value chain significance. The journey is arduous, but the destination is worth the travel. The article insists that good coordination between the government, industry stakeholders, and educational institutions is essential for overcoming the obstacles and unleashing the full potential of Pakistan’s automotive localization.

Here are further specifics on what each of these partnerships involves. Essentially, the article contends that a coordinated effort, wherein every stakeholder does their part actively and in tandem, is the only way Pakistan can transcend its present constraints and build an auto industry that is actually localized, competitive, and sustainable and serves the national interest at large.

Government: Offering stable, long-term policies with incentives towards localization, R&D, and investment in raw material sectors. Refocusing on zeroing high import duties on CKD units and encouraging local production. Rather than constant policy changes, the government should make sure to create stable, predictable, and long-term automobile policies. This gives a well-defined roadmap for investment and lets manufacturers plan for the future confidently. Some of the examples are the Automotive Development Policy (ADP) 2016-21 and its follow-up, AIDEP 2021-26, which were aimed at creating a stable business environment. Targeted tax relief, subsidies, and other incentives should be offered by the government to stimulate local manufacturing, R&D investment, and domestic production of raw materials. These include importing machinery and equipment, duty and tax-free, for testing, designing, and producing molds and dies. Re-thinking and possibly lowering excessive customs duties on Completely Knocked Down (CKD) units can render local assembly competitive. At the same time, an overhauled tariff system that encourages local parts production is essential.

Development and investment in and building a solid industrial infrastructure with a solid foundation for primary industries such as steel, plastics, and rubber are essential to minimize dependence on imported raw materials. Government support in the form of duty rebates and a smooth export system can make a big difference to Pakistan’s potential as an automotive export hub. Enforcing and implementing international safety standards and quality for vehicles produced domestically, as well as a system of consumer protection.

Industry Actors (OEMs and Suppliers: For speeding up localization in Pakistan’s automotive industry and minimizing reliance on imports, the industry needs focused, coordinated efforts by the government, original equipment manufacturers (OEMs), suppliers, and academia. These actions seek to overcome structural flaws, develop vendor capabilities, and construct a viable industrial ecosystem. Technology transfer investment, local suppliers’ capacity building, promotion of joint development programs, and authentic technology sharing. Original Equipment Manufacturers (OEMs) and local suppliers must be willing to make large investments in domestic manufacturing facilities and capabilities, going beyond assembly.

OEMs must actively participate in technology transfer and exchange with local suppliers, upgrading their manufacturing processes, enhancing quality, and becoming able to produce more sophisticated components. Joint development schemes may lead to indigenous capabilities. OEMs need to collaborate closely with domestic suppliers to leverage their capacity, quality, and technology expertise. This involves imparting mentorship schemes, financing facilities, and granting a captive, high-volume order for locally manufactured parts to render their manufacturing viable. Players in the industry need to invest in R&D to create new products, enhance current ones, and keep themselves updated with advancing technologies such as electric vehicles (EVs) and enhanced safety systems. Though difficult in a small market, industry players must seek ways to expand output to lower per-unit costs and be more competitive.

The cornerstone of automotive localization is a robust and competent vendor base. In Pakistan, though there are few Tier-1 suppliers serving the OEMs, numerous Tier-2 and Tier-3 vendors are not technically competent, quality certified, or financially strong enough to achieve global standards. Vendor capability building and financial access are essential to have significant localization. Without the support of sound vendor development and provision of finance, localization will be cosmetic in nature, confined to low-value components. Organized programs in finance, technology, training, and infrastructure will make vendors competitive suppliers, allowing Pakistan’s auto industry to attain true localization, cost competitiveness, and regional export potential. Vendor development and strong financial support are keystone constituents for the attainment of deep and sustainable auto localization in Pakistan.

Though localization holds out the prospect of great national dividends—from lower bills of imports and added jobs to cheaper cars—it is greatly disabled by certain fundamental challenges, most notably local suppliers’ inadequate access to funds for technological improvements, capacity shortages, and the lack of economies of scale. Financial assistance, thus, is vital. This goes beyond outright grants to include subsidized loans, tax relief for R&D and investment, and tariff policies facilitating local production of components. Yet, financial assistance is not enough by itself. It has to be supplemented with a strategic partnership where OEMs give technical support, ensure long-term volume commitment, and facilitate joint development. At the same time, the government needs to provide consistent, accommodating policies, and academia needs to create the trained human resources required to enable domestic vendors to manufacture quality, affordable components. With these economic and development challenges addressed by concerted, multi-stakeholder action, Pakistan can finally realize its potential to emerge as an important contributor to the regional automotive value chain.

Academia/Schools: Creating curricula to address changing skill requirements in the automotive sector, specifically in advanced manufacturing and EV technology. The curriculum of educational institutions such as universities and vocational schools must match changing needs in the automotive sector. This involves emphasizing skills for contemporary manufacturing, engineering, design, and emerging technologies such as EV servicing and production. Universities can work with industry on R&D projects, driving innovation and the creation of indigenous solutions for automotive components and technologies. Developing programs that offer a qualified workforce poised to assist in advanced manufacturing processes and address the demand of the industry for specialized expertise.

Takeaway from this article:

Essentially, if Pakistan’s auto industry is ever going to survive and flourish, the emphasis needs to become aggressively innovation-driven localization, where a collective drive for high-technology transfer and mass-scale indigenous parts production enables local suppliers to become players on the global stage and yields big economic dividends to the country. This “tough ride” requires unprecedented partnership and long-term investment.

This exclusive article has been published in Automark’s August-2025 printed edition. Written by Muhammad Rafique, Head of Production and maintenance, Foton JW Park (Pvt) Ltd.,

Procurement | Strategic Sourcing | Supplier Development | Contracts Management | Risk Management | Project Management | Budgeting | ESG | HRDD | SAP

Pakistan’s automobile industry, despite its strategic importance and market potential, continues to underperform. In 2025, the sector posted a 40% rebound in sales, driven by macroeconomic stabilization and interest rate cuts. However, this recovery masks deeper structural issues that threaten long-term sustainability especially in light of upcoming tariff reforms and the evolving electric vehicle (EV) landscape.

The 2026–2030 Tariff Reform: A Policy Inflection Point

The Government of Pakistan’s decision to reduce import duties on used vehicles to a maximum of 15% by 2030 is a pivotal policy shift. While this aims to democratize vehicle ownership and stimulate competition, it also risks undermining domestic manufacturing.

Local assemblers, already burdened by high input costs and limited localization, may struggle to compete with a surge of cheaper imports. Without a parallel industrial support framework, this liberalization could lead to:

Plant closures and job losses in the local auto and parts manufacturing sectors.

Reduced investor confidence due to policy unpredictability.

Increased trade deficit, as local production is replaced by imports.

EVs in Pakistan: A Market with Promise, Not Yet Prepared

Pakistan’s EV policy targets 30% of new vehicle sales to be electric by 2030. However, the current trajectory suggests this goal may be overly ambitious without significant policy and infrastructure support.

Key challenges include:

Brand Credibility: Most EVs launched in Pakistan are Chinese brands with limited global presence. Except for BYD, these brands are often backed by local partners with weak aftersales capabilities & raised concerns about long-term service and parts availability.

Infrastructure Gaps: Charging infrastructure remains sparse, especially outside major urban centers

High Electricity Costs: With electricity tariffs among the highest in the region, EVs may not offer meaningful cost savings to consumers.

These factors could delay mass adoption and erode public trust in EV technology.

Global Lessons: What Policymakers Should Note

Countries that have successfully liberalized their auto sectors did so with strategic foresight:

India: Gradual tariff reductions were paired with incentives for local manufacturing and exports. Today, India is a global hub for small car production.

Mexico: Leveraged NAFTA to integrate into global supply chains, becoming a top auto exporter.

Thailand: Offered consistent policies and localization incentives, earning the title “Detroit of Asia.”

The common thread? Tariff liberalization was never standalone, it was always part of a broader industrial strategy which we don’t observe in Pakistan’s case.

Current Policy Landscape: Mixed Signals

The 2025-26 federal budget introduced a Green Levy on internal combustion engine (ICE) vehicles, ranging from 1% to 3% based on engine size. While this is a step toward environmental sustainability, it coincides with:

Increased GST on small cars (e.g., Suzuki Alto), raising prices by up to Rs. 190,000.

Carbon levies on fuel, increasing operational costs for transporters and consumers.

These measures, though well-intentioned, may inadvertently reduce affordability for low and middle income buyers unless offset by targeted subsidies or financing schemes.

Structural Challenges That Persist

Even without the tariff shift, the industry faces systemic issues:

Import Dependency: Almost 40% of the components are imported, exposing the sector to currency volatility.

Policy Volatility: Frequent changes in tax and trade policy deter long-term investment.

Affordability Crisis: With average car prices exceeding Rs. 3 million, new vehicles remain out of reach for most Pakistanis.

Innovation Deficit: Local R&D and EV development remain minimal.

Policy Recommendations: A Strategic Realignment

To ensure the auto sector contributes to industrial growth, employment, and environmental goals, policymakers should consider:

1. Phased Tariff Reduction: Gradually lowering duties (10-~15 years) while supporting local capacity building.

2. Localization Incentives: Offer tax breaks and grants for increasing local parts manufacturing to 80%~90% in existing vehicles and/or initiating EV assembly.

3. EV Ecosystem Development: Highly incentivizing the investments in charging infrastructure, battery recycling, and grid integration.

4. Consumer Financing: Expand access to affordable auto loans, especially subsidized for EVs and hybrids.

5. Stable Policy Framework: Ensure consistency in auto policy to attract long-term investment.

Conclusion: From Protection to Progress

Pakistan’s auto industry stands at a critical juncture. The upcoming tariff reforms and EV transition could either catalyze transformation or deepen structural vulnerabilities. Policymakers must act decisively to align trade liberalization with industrial development, infrastructure investment, and environmental sustainability.

The road ahead is challenging but with the right policy mix, Pakistan can shift gears from stagnation to sustainable growth.

This exclusive article has been published in Automark’s August-2025 printed edition. Written by Syed Arsalan Ali

Learning from the Past – Earning from the Present – Growing from the Future

Episode: 5

Summary of the Last Articles

Countries that have economically developed through the auto industry, like America, Europe, Japan, Korea, and nowadays China, are a living example of this, while Pakistan’s development is also inseparable from the auto industry.

We also reviewed the auto market trend in Pakistan and the rest of the world. SUVs are being liked for many reasons. Then we reviewed the businesses of HEV and related business potential that can be started.

Then we had looked at the past of EV and found that the auto industry started with EV vehicles maintained their place until the end of World War II, then IC engine vehicles made progress and left the EV industry behind.

In the last article, we had discussed the real journey of EV, from starting to mass production and the reasons for the rebirth of electric Vehicles. The presently marketed brands of EVs, including Electric Buses, started in different cities as a public transport within Pakistan.

Now Read On….

The Growth of Batteries is Growing to HEVs

The car battery’s history begins with the invention of the lead-acid battery by Gaston Planté in 1859. Initially, it was bulky, but improvements led to its use in early automobiles for starting engines and powering basic electrical components like headlights and horns. 

Later, standardized battery sizes were introduced, and the transition from 6-volt to 12-volt systems occurred as engines became more powerful. 

Today, lithium-ion batteries are becoming increasingly common in electric and hybrid vehicles. 

Early Days (Pre-1910s):

Early cars relied on hand cranks for starting, and their electrical systems were limited, with magneto ignition, gas-powered headlights, and bulb horns. 

The Advent of the Starter Battery (1910s):

The introduction of the electric starter in 1912 by Cadillac eliminated the need for hand-cranking, requiring a reliable power source like the lead-acid battery. 

Standardization and 6-Volt Systems (1920s-1950s):

The Hudson Motor Car Company adopted the first standardized battery size, and 6-volt systems were common. 

The 12-Volt Transition (Mid-1950s onwards):

Larger engines with higher compression ratios necessitated more power, leading to the widespread adoption of 12-volt systems.

The Rise of Lithium-ion (21st Century):

Lithium-ion batteries are gaining prominence in electric and hybrid vehicles due to their energy density and performance characteristics. 

Ongoing Evolution:

Battery technology continues to evolve, with advancements in materials, energy density, and charging capabilities. 

Battery Journey in Pakistan

The journey of car batteries in Pakistan is closely linked with the development of the country’s automotive industry. Initially, vehicles were imported along with their batteries. 

Local battery manufacturing began in the mid-1950s, with Exide Pakistan being one of the pioneers. 

Atlas Battery, established in 1965, later became a major player, partnering with Japan Storage Battery Co. Ltd. (now GS Yuasa Corporation) in 1966 to produce “AGS” batteries. 

The local industry has grown, with organized players like Atlas, Exide, Osaka, Phoenix, Millat, Daewoo, and National dominating the market. 

Batteries Manufacturing Business Started in Pakistan:

• 1953: Exide Pakistan started domestic production of car batteries. 
• 1965: Atlas Battery was established. 
• 1966: Atlas Battery signed a technical collaboration agreement with Japan Storage Battery Co. Ltd. for production of batteries in Pakistan. 
• 1969: Atlas Battery commenced production under the “AGS” brand. 
• 1970s-2000s: The automotive industry in Pakistan expanded, leading to increased demand for batteries. Atlas Battery, along with other manufacturers like Phoenix and Osaka, grew to meet this demand. 
• Present: The organized segment of the battery market in Pakistan is dominated by a few large players, including Atlas, Exide, Osaka, Phoenix, and National, with local production reaching around 11.9 million batteries in FY21. The market is also seeing increased imports and exports of storage batteries. The growing number of vehicles on the road and the energy crisis are key drivers for the battery market.

Pakistan Battery Market Analysis

The Pakistan Battery Market is expected to register a CAGR of greater than 3.5% during the forecast period.

• Over the medium period, factors such as the growing automotive sector in the country and the low cost of lead and lithium are likely to drive the Pakistan battery market during the forecast period. Moreover, there has been a sharp increase in the sales of automobiles, particularly of the two- and four-wheeler varieties, which also include electric vehicles. This surged the demand for SLI batteries and lithium-ion batteries, which is expected to propel the Pakistan battery market.
• On the other hand, an economic slowdown and increasing government debt will likely restrain the Pakistan battery market during the forecast period.
• Nevertheless, increasing the FDI due to the OBOR (One Belt, One Road) project, which includes various infrastructure projects, is likely to create a massive opportunity for the battery companies to fully fill the requirement of energy storage demand. Moreover, transportation and the number of heavy vehicles are expected to increase due to infrastructure development, which is likely to boost the battery market during the forecast period.

Pakistan Battery Market Trends

Lithium-ion Battery Expected to Witness Significant Growth

• The lithium-ion battery market is still in its nascent phase in Pakistan. The country imports the majority of its Li-ion batteries from China. Increasing demand for backup power solutions and a rise in solar PV installations are expected to be the major drivers for the Li-ion battery market in the country.
• These trends result in a sharp and sustained cost reduction, which is expected to help cement lithium-ion as the battery chemistry of choice in all energy storage markets, including grid-scale, behind-the-meter storage, residential storage, and microgrids in Pakistan.
• Manufacturers are focusing on reducing the cost of lithium-ion technology. The price of lithium-ion batteries has fallen steeply over the past ten years. In 2022, the lithium-ion battery price was USD 135 per kWh.
• This sharp and sustained cost reduction is expected to help cement lithium-ion as the battery chemistry of choice in all industrial and commercial electronic markets, including the agricultural, material handling, and construction industries, compared to lead-acid batteries. Falling battery prices are expected to bring price-competitive electric vehicles to all the major electric vehicle segments before 2030, ushering in a period of intense growth for electric vehicles.
• Hence, with declining prices, the lithium-ion battery segment is likely to witness significant growth in the market during the forecast period.

Growth of Electric Vehicles and the Renewable Energy Sector

• The initiation of electric vehicle assembling projects in Pakistan is expected to boost the battery market in the coming years. The government has been working toward increasing the integration of EVs in the country’s automobile sector and has set a target of 30% of vehicles operating on batteries by 2030.
• Pakistan’s electric vehicle (EV) policy was approved for implementation in June 2020. Under the policy, the government aims to bring half a million e-motorcycles and rickshaws, with more than 100,000 electric cars, buses, and trucks, into the transportation system over the next five years.
• The transportation sector in Pakistan has been experiencing double-digit growth. Almost dependent on oil-based products, and the country spends nearly USD 13 billion on the import of oil every year. Continues to grow at the same rate, the bill for oil imports is expected to reach around USD 30 billion by 2025. Therefore, shifting to electric vehicles solves several sectors’ present and impending problems, including transportation, environment, economy, and power.
• The running cost of electric vehicles is relatively low, but the capital cost is relatively high. Moreover, the present infrastructure for EVs in the country needs to be improved. The Pakistani government has planned to implement incentives to support EV adoption and domestic manufacturing.
• Therefore, owing to the above points, the increasing growth of electric vehicles and the renewable energy sector in the country is likely to drive the Pakistan battery market during the forecast period.

Batteries Business Opportunities in Pakistan

Several promising battery business opportunities exist in Pakistan, driven by the growth of electric vehicles (EVs), renewable energy, and consumer electronics. The increasing adoption of EVs, spurred by government incentives, and the expansion of the renewable energy sector, particularly solar and wind power, are creating a surge in demand for energy storage solutions. Additionally, the consumer electronics segment, including smartphones and other devices, is also contributing to the overall demand for batteries. 

Specific Opportunities:

• Lithium-ion Battery Manufacturing and Assembly:

The rising demand for EVs and renewable energy storage systems presents a significant opportunity for establishing lithium-ion battery manufacturing and assembly plants in Pakistan. 

• Import/Distribution of Batteries:

For businesses not yet ready to enter manufacturing, importing and distributing high-quality batteries, particularly for EVs and renewable energy applications, can be a profitable venture. 

• Battery Recycling:

As battery usage increases, so does the need for proper battery recycling to minimize environmental impact. This creates a niche market for battery recycling businesses. 

• Battery Management Systems (BMS):

Developing and supplying advanced BMS for EVs and energy storage systems is another area with growth potential, focusing on efficiency, safety, and longevity of batteries. 

• Specialized Battery Applications:

Opportunities exist in niche markets like industrial batteries, backup power solutions for businesses, and specialized batteries for electric motorcycles and rickshaws, which are part of the government’s EV policy. 

• Solar Battery Solutions:

With the growing adoption of solar power, businesses can focus on providing high-quality solar batteries for homes and businesses. 

• Inverter Battery Sales and Service:

Inverter batteries for backup power during outages remain a consistent market in Pakistan. Businesses can focus on sales, installation, and maintenance of these batteries. 

• Advanced Battery Technologies:

Research and development in areas like sodium-ion batteries or other emerging technologies could also be a future opportunity. 

Factors Favoring Battery Business Growth in Pakistan:

• Government Support:

The Pakistani government is actively promoting EVs and renewable energy, creating a favorable environment for battery-related businesses. 

• Increasing FDI:

Foreign direct investment is expected to increase due to infrastructure projects, further supporting the growth of the battery market. 

• Rising Energy Demand:

Pakistan’s growing population and economy are driving increased energy consumption, creating a need for reliable energy storage solutions. 

• Cost Optimization:

Efficient manufacturing and supply chain management are crucial for remaining competitive. 

• Innovation and R&D:

Investing in research and development to improve battery performance and develop new technologies is vital. 

• Strategic Partnerships:

Collaborating with local and international companies can help businesses expand their reach and access new technologies. 

Next episode, Battles between Global Lithium Demands is experiencing a significant surge, primarily driven by the widespread adoption of electric vehicles and the expansion of lithium-ion battery technology. 

This increased demand is creating a “race” to secure lithium supplies, with various countries and companies exploring new extraction methods and locations.

Wait for exploring the World of Lithium by staying connected with Monthly AUTOMARK, then say together Grow Automotive Grow Pakistan, INSHALLAH.

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This exclusive article has been published in Automark’s August-2025 printed edition. Written by Mumtaz Hussain

INTRODUCTION

Dear Readers as the world races toward sustainable transportation, electric vehicles (EVs) are rapidly becoming a focal point of change. For countries like Pakistan, where the import bill for fossil fuels is a major burden and urban air quality is deteriorating, EVs offer a promising solution. Despite concerns about depreciation, upfront costs, and infrastructure, the EV market in Pakistan holds substantial potential for both private and commercial users. This article examines the benefits of EV adoption, strategies to offset rapid depreciation, and outlines viable business cases for middle- and upper-income segments.

1. The Pakistani Context: Transportation and Energy Challenges

Pakistan is heavily reliant on imported fossil fuels to meet its energy needs, particularly in the transportation sector, which accounts for nearly 40% of total oil consumption. With frequent fluctuations in global oil prices, local fuel costs have soared—making transportation expensive for households and businesses alike. Additionally, air pollution in cities like Lahore and Karachi is among the worst in the world, exacerbated by the high concentration of internal combustion engine (ICE) vehicles.

In this scenario, EVs offer a twofold advantage: they reduce dependency on imported oil and contribute to cleaner air.

2. Benefits of EVs for Private Users

2.1 Cost Savings on Fuel and Maintenance Electricity as a fuel source is significantly cheaper than petrol or diesel. At an average electricity rate of PKR 25-30 per unit and an EV consuming 15-20 kWh per 100 km, the running cost is roughly PKR 300-600 per 100 km—much lower than the PKR 2,500-3,000 cost for petrol vehicles covering the same distance.

Maintenance is also substantially cheaper. EVs have fewer moving parts, which means fewer breakdowns, no oil changes, and reduced wear and tear.

2.2 Government Incentives and Import Relief Though still evolving, the Pakistani government has introduced some incentives for EV users, including lower import duties on EV components and exemptions from registration fees. With policy support expected to grow, private users stand to benefit further.

2.3 Enhanced User Experience EVs offer smooth acceleration, reduced noise pollution, and smart connectivity features that are becoming increasingly attractive to modern consumers.

3. Benefits of EVs for Commercial Users

3.1 Fleet Management Cost Reduction For logistics, ride-hailing, and delivery services, EVs can dramatically reduce operational costs. For example, a delivery van running on electricity may cut fuel expenses by up to 70%, directly improving profit margins.

3.2 Brand Positioning and ESG Compliance Companies are increasingly being judged on their environmental impact. Adopting EVs can enhance a company’s brand image and support environmental, social, and governance (ESG) goals.

3.3 Predictable Operational Costs Unlike fuel prices, which fluctuate wildly, electricity costs in Pakistan are more stable and predictable, enabling better budgeting and long-term planning.

4. Addressing Depreciation: How to Recover the Value of an EV

4.1 Total Cost of Ownership (TCO) Advantage While EVs have higher upfront costs and depreciate faster in certain markets, their lower running and maintenance costs help even out the scales. Over a 5-year period, the TCO of an EV can be lower than that of a comparable ICE vehicle.

4.2 Secondary Battery Use and Recycling Even after their automotive life, EV batteries can be repurposed for energy storage systems, backup power units, or solar home kits. This adds residual value and promotes a circular economy.

4.3 Subscription and Leasing Models Leasing options can help offset depreciation concerns by lowering the burden of upfront costs and enabling vehicle upgrades. This model is especially relevant for commercial fleet operators.

4.4 Resale Markets and Ecosystem Growth As the EV ecosystem matures in Pakistan, a secondary market for used EVs and components will emerge, helping users recover value through resale and trade-ins.

5. Best Business Cases for Middle- and Upper-Income Segments

5.1 Middle-Income Segment: Ride-Hailing and Delivery Services

Middle-income individuals can benefit by using EVs for ride-hailing (Indrive, Yango, Metro) or delivery jobs. A small hatchback EV can be acquired for starting PKR 3-5 million, and with low operational costs, drivers can generate a steady income with higher profit margins.

Additionally, the growing trend of e-commerce and food delivery provides ample opportunities for two- and three-wheeler EVs.

5.2 Middle-Income: Cooperative Ownership Models Communities or groups of individuals can pool resources to buy and operate EVs collectively, sharing maintenance and charging infrastructure, and reducing per-user costs.

5.3 Upper-Income Segment: Luxury EV Ownership and Home Charging Infrastructure Wealthier individuals can explore premium EVs such as Tesla, Audi e-tron, or BMW i-series. Their high-end performance and luxury features make them attractive lifestyle choices. Many upper-income households already have access to private parking and can install dedicated charging stations at home, enhancing convenience.

5.4 Upper-Income: Solar-Integrated EV Ecosystems Upper-class users with rooftop solar installations can achieve near-zero fuel costs by charging their EVs with solar power, maximizing both environmental and financial benefits. This creates an integrated green lifestyle.

5.5 Investment in Charging Infrastructure Affluent individuals and businesses can invest in EV charging stations, tapping into a nascent but promising market. As EV adoption grows, early entrants in the charging business can reap substantial returns.

6. Infrastructure and Policy Support

Pakistan’s EV policy envisions 30% of all new vehicles sold to be electric by 2030. To achieve this, concerted efforts are needed:

• Expansion of public and private charging infrastructure
• Import duty rationalization for EV parts
• Encouraging local EV manufacturing and assembly
• Training programs for EV maintenance professionals

Collaboration between government, private sector, and civil society is essential to build a robust EV ecosystem.

7. Barriers to Adoption and the Way Forward

While the prospects are promising, certain challenges must be addressed:

• Lack of widespread charging stations
• High upfront vehicle costs
• Limited model availability
• Public awareness and trust issues

Solutions include government subsidies, public-private partnerships, financing options, and awareness campaigns.

8. Case Studies and Global Benchmarks

8.1 India: A Regional Success Story India’s EV strategy serves as a relevant example. The country’s Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) program has catalyzed EV adoption through incentives for manufacturers and consumers. Notably, states like Delhi have introduced additional subsidies, waived road taxes, and supported charging station development. Pakistan can replicate such localized strategies tailored to urban centers like Lahore and Islamabad.

8.2 China: Leading by Volume and Infrastructure China’s early and aggressive investments in battery manufacturing and EV infrastructure have made it the global leader. Over 50% of all EVs sold globally are in China. The Chinese government’s strategy to subsidize EV purchases and offer free license plates in major cities demonstrates how smart policy can reshape market behavior.

8.3 UAE: Infrastructure-Led Model Dubai’s “Green Mobility” initiative and free public parking for EVs reflect how infrastructure support and convenience-based perks drive adoption. Pakistan’s elite and commercial hubs can draw from this strategy to pilot high-visibility EV zones.

9. EV Technologies and Performance Trends

9.1 Battery Innovations Battery costs have declined by over 80% in the past decade, with newer chemistries like Lithium Iron Phosphate (LFP) offering safer, longer-lasting alternatives. Pakistani consumers will benefit from this trend, especially as local dealers begin to import newer models.

9.2 Range Improvements Modern EVs now offer ranges approximate, 250 to 600 km on a single charge. Even budget EVs like the BYD Dolphin and MG4 are reaching 300+ km range, making them viable for both city and intercity travel in Pakistan.

9.3 Fast Charging and Battery Swapping DC fast charging and battery swapping stations can mitigate range anxiety. A 30-minute charge providing 80% battery capacity is already possible with many models. Pakistan’s private sector can lead investment in such infrastructure, supported by regulatory clarity.

10. Return on Investment (ROI): A Deeper Financial Comparison

Let’s consider a basic comparison:

• ICE Vehicle: Suzuki Cultus
  • Fuel Cost: ~PKR 2,500 per 100 km
  • Annual Maintenance: ~PKR 50,000
  • 5-Year Fuel + Maintenance: ~PKR 1.4 million
• EV: MG ZS EV
  • Electricity Cost: ~PKR 500 per 100 km
  • Annual Maintenance: ~PKR 20,000
  • 5-Year Fuel + Maintenance: ~PKR 400,000

This suggests an EV user saves ~PKR 1 million over five years. Even with a 10–15% faster depreciation, the lower running cost and secondary battery applications deliver a better net ROI.

11. Urban Planning and Mobility Integration

EVs can also be incorporated into broader urban development goals:

• EV Car-Sharing Hubs: Urban centers can integrate EV-sharing fleets for public access, reducing car ownership and congestion.
• Mixed-Use Charging Stations: Malls, tech parks, and public transport hubs can offer charging alongside retail or entertainment, boosting utility and adoption.
• Smart Grid Integration: In the long term, EVs can become part of Pakistan’s energy resilience strategy, feeding electricity back to the grid (V2G – Vehicle to Grid).

12. Final Thoughts: A Roadmap for All Stakeholders

To truly capitalize on the EV transition, a multi-stakeholder approach is essential:

• Government: Provide financial incentives, standardize regulations, and invest in infrastructure.
• Private Sector: Develop financing models, leasing options, and local EV assembly.
• Consumers: Shift mindset toward TCO, environmental impact, and tech-driven benefits.
• NGOs and Academia: Launch awareness campaigns and technical training.

With the right blend of policy, finance, and innovation, EVs can drive Pakistan toward cleaner air, reduced imports, and inclusive economic growth.

Conclusion

EVs present a transformative opportunity for Pakistan’s transport and energy sectors. By reducing fuel costs, lowering emissions, and offering viable business models, EVs can benefit both private and commercial users. With the right policies, infrastructure, and market incentives, even the challenges of depreciation and high upfront costs can be effectively managed. For middle-income earners, EVs offer a path to sustainable entrepreneurship, while for upper-income users, they represent a lifestyle upgrade and an investment opportunity. The future is electric—Pakistan just needs to plug in.

This exclusive article has been published in Automark’s August-2025 printed edition. Written by Aqeel Bashir

🔰 Introduction

Electric mobility is no longer a futuristic dream in Pakistan — it is a movement in motion. Over the past two years, the electric two-wheeler market has shifted from skepticism to visible acceptance, with dealership interest and on-road presence growing rapidly.

Major cities in Punjab, Sindh, and Khyber Pakhtunkhwa (KPK) are witnessing a steady rise in EV bikes and scooters, driven by increasing fuel prices, evolving customer behavior, and more supportive government policies.

This article explores the past progress, present momentum, and the future roadmap of electric two-wheelers in Pakistan, with emphasis on policy support, localization challenges, consumer trends, and regional disparities.

🛠️ 2020–2025: From Trial to Takeoff

1. Government Push & Policy Enablement

The Electric Vehicle Policy 2020–25 laid the foundation for this shift. In recent years, both federal and provincial governments — particularly Punjab — have initiated concrete actions to accelerate EV adoption:

• Zero customs duty on EV-specific components,
• Reduced sales tax on locally assembled EV bikes,
• Early discussions on low-interest financing schemes for consumers.

These measures have boosted investor confidence and sparked a surge in dealership applications across the country.

2. Fuel Prices: A Natural Catalyst

With petrol prices crossing Rs. 260–280 per liter, affordability has become a major concern. EV bikes, with a running cost of Rs. 1–1.5/km, offer a compelling alternative to petrol bikes, which cost Rs. 6–8/km.

For daily commuters and delivery riders, the financial advantage of EVs is too significant to ignore — making the shift more of an economic necessity than a lifestyle choice.

3. Industry Response: Learning, Testing & Adapting

Pakistan’s EV industry remains in a learning phase:

• Multiple brands — including OKLA, Yadea, Metro, Evee, Benling, Eveon, TailG, Ramza, and others — have launched diverse models with different specs.
• However, most companies are still experimenting and have yet to finalize high-volume flagship models for long-term scalability.

This uncertainty is closely tied to localization constraints. Sustainable localization becomes feasible only when:

• A model is standardized and widely adopted,
• Sales volumes are high and consistent,
• Vendors have confidence in future demand.

Without this stability, parts suppliers cannot justify the investment in tooling or economies of scale — keeping localization efforts limited and prices higher than potential.

📍 Regional EV Adoption: Punjab Leads, Sindh Lags

✅ Punjab: A Success Story in the Making

Cities like Lahore, Faisalabad, Rawalpindi, and Multan have shown strong growth in EV interest:

• Dealership networks are expanding.
• Low-rise housing makes home charging feasible.
• Higher road visibility and rising fuel costs have increased customer confidence.

⚠️ Sindh: Slower, But Full of Potential

Sindh — especially Karachi — is showing slower adoption due to a mix of factors:

• High-rise apartment living, limiting access to home charging.
• Lack of public charging infrastructure.
• Poor road conditions, which impact vehicle performance.
• Less aggressive brand outreach and promotion.

Despite these hurdles, Pakistanis are known for street-smart innovation. Creative solutions are already emerging, including:

• Ground-floor shared sockets,
• Rooftop and basement charging setups,
• Battery swapping stations in commercial areas.

These grassroots innovations — if recognized and supported — can become cornerstones of urban EV infrastructure.

💸 Cost of Ownership: A Hidden Yet Critical Factor

EV bikes offer substantial savings in fuel, maintenance, and service costs. Yet, the concept of total cost of ownership (TCO) is still largely not considered by Pakistani consumers.

• Only about 1% of buyers actively consider lifetime operating cost.
• Most purchasing decisions are based on initial price, battery range, shape/design, and brand recognition.

🔋 The Missing Puzzle: Standardization for Localization

A key barrier to EV industry growth is the lack of standardized models.

Once 2–3 flagship models are selected and scaled, vendors can confidently invest in:

• Chassis and frame production,
• Battery and controller casings,
• Local chargers and accessories,
• Plastic and cosmetic components.

This will drive down costs, strengthen after-sales support, and enable Pakistan to become a true EV manufacturing hub in South Asia.

🏭 Market Competition & Price War on the Horizon

The next 3 years will see a wave of new entrants and product diversification:

• More companies are entering Pakistan with a variety of EV bike and scooter models.
• Promotions, installment plans, and bundling of chargers/batteries will become common.
• Competition will intensify, forcing prices to drop and quality to rise.

While this is great news for consumers, it also demands that local players focus on aftersales, training, and customer retention strategies to stay competitive.

🔄 Battery Swapping: The Future of Convenience

As lithium-ion battery demand increases, especially in cities with dense housing, battery swapping stations could offer a scalable solution:

• No need for home or public charging setups
• Quick 1–2 minute battery exchanges
• Potential to support delivery fleets and ride-hailing services

For battery swapping to thrive in Pakistan, coordination between:

• OEMs (standardized battery sizes),
• Energy service providers (swapping networks), and
• Government (subsidy/infrastructure policy)
  …is essential. With the right push, battery-as-a-service (BaaS) could revolutionize EV mobility.

📈 The Road Ahead: Vision 2030 & Beyond

Area	2030 Outlook
EV 2-Wheeler Adoption	Expected to exceed 1 million units on roads
Standardized Models	2–3 models to dominate high-volume production
Parts Localization	30–50% local content in top-selling models
Charging Infrastructure	Growth in home-based and smart local solutions
Dealership Growth	Over 500 active outlets anticipated
Vendor Ecosystem	Tier-2 suppliers to scale with stabilized demand

🧠 Final Thoughts: Strategy, Scale & Sustainability

The future of EV bikes and scooters in Pakistan is bright — but only with the right strategy.

To ensure long-term sustainability, the following must be prioritized:

✅ Policy implementation and real-time enforcement

✅ Model standardization to enable localization

✅ Vendor training, tooling, and business confidence

✅ Aftersales infrastructure and technician readiness

✅ Urban charging innovation for high-rise regions

As more EVs hit the road, “seeing is believing” will fuel widespread adoption. But now is the time for OEMs, policymakers, dealerships, and vendors to collaborate and build a scalable, affordable, and locally rooted EV ecosystem.

🖊️ About the Author

Muhammad Asif Mehmood is an automotive aftersales professional with 28+ years of experience in ICE and EV platforms. He currently leads EV technical and service transformation initiatives and regularly writes about trends shaping Pakistan’s mobility future.