Episode: 4

Summary of the Last Articles

In the previous article, we mentioned the countries that have achieved economic development through the auto industry. Auto industry has given immense industrial and economic development to America, Europe, Japan, and Korea and included them in the list of developed countries in the world. China is a living example of this, while Pakistan’s development is also inseparable from the auto industry.

Then we reviewed the auto market trend in Pakistan in particular and the rest of the world in. SUVs are being liked for many reasons. Then we reviewed the businesses related to EV vehicles and the potential opportunities for many more new businesses that can be started.

In the last article we had looked on the past of EV and find that the auto industry started with EV vehicles maintained their place in market for a few decades until the end of World War II and IC engine vehicles made progress and left the EV industry behind. We reviewed that EV history to development of the current and future auto industry.

Now Read On….

The Future: A World of Electric Mobility

Today, electric vehicles are at the forefront of the automotive industry, with continued advancements in technology and growing consumer demand driving the market forward. The future of electric vehicles looks promising, with several key trends shaping the landscape:

• Autonomous Electric Vehicles: The development of autonomous driving technology is expected to integrate seamlessly with electric vehicles, creating a new era of self-driving electric mobility.
• Sustainable Manufacturing: Automakers are increasingly focusing on sustainable practices in the production of electric vehicles, from sourcing materials to recycling batteries.
• Global Expansion: The adoption of electric vehicles is growing rapidly worldwide, with emerging markets playing a crucial role in the global transition to electric mobility.
• Energy Integration: Electric vehicles are becoming an integral part of the broader energy ecosystem, with innovations in vehicle-to-grid technology enabling cars to support renewable energy grids.
• The first mass-produced: Electric car, in the modern sense, was the General Motors EV1, released in 1996. However, the first mass-produced hybrid car, the Toyota Prius, was introduced in Japan in 1997. 
• Toyota released: The first mass market electric car in Japan, 1997. They used a new nickel-metal hydride battery which they still use in their cars today. The Toyota Prius quickly became a popular model of car due to fuel prices rising once again and the public’s growing awareness of pollution.
• The exciting thing: About technology is that it’s ever evolving. By the time we entered the 2000s, the technology was in place to create an electric car which meant car manufacturers could start focusing on the design.
• Tesla hit the market: With a luxury electric car which challenged the leading sports car brands. Its popularity showcased a new desire for electric cars that we hadn’t seen before – electric cars are not only needed, but wanted.

Current Scenario & Future of electric cars

The popularity of Hybrid & Electric cars is growing due to a number of reasons:

1. Hybrid & Electric Cars becoming more affordable,

2. Charging stations increasing continuedly.

3. Hybrid cars synchronizing the electric vehicles till wide expansion infrastructure

4. Quick home electric chargers coming with cars and available in local markets

5. Every car maker and assembler introducing new models with Hybrid, Plug-in Hybrid and EVs

6. A greater awareness of our environmental impact.

Electric Bikes and Scooters

However, it’s not just cars benefitting from the electric revolution with electric bikes and scooters also becoming more common. As the world continues to look towards more sustainable energy sources, electric vehicles are only going to become more popular, and with greater demand, comes a greater supply, with more hybrid and electric cars hitting the market.

EV and hybrid market in Pakistan

The electric vehicle (EV) and hybrid market in Pakistan has seen growth since 2015, driven by government policies, environmental concerns, and rising interest from consumers. While EVs are still in their early stages of development in Pakistan, hybrid vehicles have gained popularity for their fuel efficiency. 

Hybrid Vehicles:

• Market Growth:

Hybrid vehicles like the Honda Vezel, Toyota Prius, and Aqua have become increasingly popular in Pakistan, driven by their perceived fuel efficiency and the potential to reduce fuel costs. 

• Demand:

The demand for hybrids is rising due to stringent emission regulations and the growing awareness of environmental issues. 

• Local Assembly:

Some manufacturers have begun assembling hybrid vehicles locally, potentially reducing import duties and making them more affordable. 

• Best Examples:

MG, Haval, Toyota, Honda, Kia, Hyundai, Deepal, BYD and some more companies introduced or introducing near future are expanding their EV offerings, curiosity among environmentally conscious consumers in Pakistan

Growing Interest:

Pakistan has seen a budding interest in EVs, with initiatives like the Electric Vehicle Policy 2021 aimed at reducing import duties and making them more affordable.  

New Energy Vehicle Policy 2025

• The New Energy Vehicle Policy 2025 aims to address challenges in EV adoption and production, with ambitious targets for transitioning to clean energy in the transport sector.

As per available information indifferent media. The Federal Minister For Finance And Revenue Muhammad Aurangzeb chaired a meeting on the New Energy Vehicle Policy 2025.

• The policy aims to address key challenges in the adoption and production of electric vehicles and sets ambitious targets for transitioning to clean energy in the Transport Sector.
• Secretary Industries & Production delivered a detailed presentation outlining the current state of the Electric Vehicle Industry.
• The presentation emphasized policy interventions to ensure smooth adoption of NEVs in line with national priorities.
• Discussions focused on overcoming barriers to electric vehicle production and adoption, improving manufacturing processes, addressing infrastructure needs, necessary policy corrections to streamline EV production, addressing supply chain issues, and encouraging private sector investment.
• The Finance Minister stressed the importance of the timely development and implementation of the NEV Policy 2025-30 .
• The meeting concluded with a commitment to expedite efforts for the successful implementation of the NEV Policy, paving the way for a cleaner, greener, and more sustainable future for Pakistan.

Policy Support and Challenges

The National EV policy has set EV market penetration targets, aiming for 30% of new passenger vehicle sales and 50% of two, three-wheelers and buses by 2030. 

• Challenges:

Challenges to EV adoption include the lack of charging infrastructure, high costs, and limited domestic EV production.   

• Global Battery Costs:

The cost of batteries, which is a major component of EV prices, will impact their affordability. 

• Localization of Supply Chain:

Developing a local supply chain for EV parts can reduce costs and promote domestic production. 

• Public Awareness:

Raising awareness about the benefits of EVs and dispelling misconceptions is important for increasing consumer demand. 

• Price Competitiveness:

The cost of EVs needs to be competitive with traditional vehicles to attract more consumers.

Electric Busses Future in Mass Transit 

Pakistan is actively transitioning to electric buses for its public transportation, with a focus on Lahore and other cities in Punjab. The Punjab government launched the first electric bus service in Lahore in February 2025, and has plans to add more e-buses to the fleet and expand the service to other cities. This initiative aims to provide a more sustainable and affordable public transport system. 

Key developments in Pakistan’s electric bus program:

• Lahore’s Electric Bus Service:

The Punjab government launched the “Welcome to Maryam Nawaz Sharif Green Punjab” electric bus service in Lahore, starting from the Railway Station to Green Town. The pilot project initially included 27 e-buses, with plans to add 500 more by August. 

• Expansion to other cities:

The Punjab government has approved the introduction of 1,500 electric buses in six districts, including Sargodha, Sheikhupura, Sialkot, Gujrat, Rahim Yar Khan, and Dera Ghazi Khan. The first phase will see 380 electric buses introduced in Lahore and Gujranwala. 

• Infrastructure Development:

Charging stations are being established to support the e-bus fleet, and a modern transport command and control tower is planned for Lahore. 

• Benefits of electric buses:

The Punjab government is promoting electric buses as a “cheap and modern” public transport system, offering benefits such as free Wi-Fi, mobile charging ports, and CCTV cameras. 

• Other initiatives:

The Sindh government also plans to add 100 pure-electric buses to its public transportation system, with Karachi being a potential test case for their deployment. Daewoo Express has also expressed interest in introducing inter-city electric buses in Pakistan. 

• Government support:

The Punjab government is subsidizing the fare for passengers, and offering free travel to senior citizens, differently-abled individuals, and students. 

Let’s make a conclusion to follow them

We have extensively studied electric vehicles in our past and present articles, not only the present but also the past of electric cars, and in light of this, we have also examined the current and future situation of electric cars. Therefore, we should adopt innovation. Survival lies in adopting innovation. Through electric vehicles, we can improve our environment, our economy, and our living standards. Also, we can set the new upcoming automotive industry’s business goals in a timely manner.

There are never end to explore new ways of progress in Automotive sector. Stay connect with modernity, businesses and Monthly AUTOMARK, then say together Grow Automotive Grow Pakistan, INSHALLAH.

Introduction

Dear Readers Pakistan’s automobile industry stands at a pivotal juncture. In recent years, the sector has witnessed notable growth, with a mix of domestic investments, joint ventures, and the entry of new players. However, this progress coincides with complex economic challenges and a volatile regional geopolitical landscape. The government’s annual budget, therefore, carries significant weight in shaping the trajectory of the automotive sector—not just as an industrial engine, but as a critical pillar of economic resilience and strategic independence.

To strike a balance between growth, sustainability, and national interests, the government must carefully evaluate fiscal policy, industrial support, regional geopolitics, and consumer dynamics. This article explores key factors that policymakers should prioritize to empower Pakistan’s automobile sector in the 2025–26 budget.

1. Macroeconomic Stability: The Bedrock for Industrial Planning

The automobile industry is highly sensitive to macroeconomic indicators—especially interest rates, inflation, and currency volatility. Pakistan’s recent history of rupee depreciation and high inflation has severely impacted car prices and demand, making locally produced vehicles unaffordable for the average consumer.

Recommendations:

• Stable Exchange Rate Policy: To maintain investor confidence and protect domestic manufacturers from raw material cost shocks (most components are imported), the budget must support policies aimed at currency stabilization.
• Inflation Control Measures: Strengthening monetary-fiscal coordination can help curb inflation, making vehicle financing more accessible and sustaining consumer demand.
• Auto Financing Incentives: Reintroducing low-interest auto loans—particularly for small vehicles and electric bikes—could stimulate demand without excessive subsidy burdens.

2. Incentivizing Localization and Value Addition

Despite existing automobile assemblers in the country, Pakistan largely remains an importer of Completely Knocked Down (CKD) kits. The localization of components remains modest, limiting value addition and domestic employment generation.

Recommendations:

• Phased Localization Roadmap: Introduce budgetary incentives tied to component localization targets over a 3–5 year horizon. Firms that achieve higher local value addition should be rewarded with tax credits, reduced customs duty, or R&D grants.
• Support to Local Vendors: Allocate budgetary support for training and upskilling local auto part manufacturers through public-private partnerships. Establishing specialized industrial zones for parts suppliers can create an ecosystem similar to Thailand or Vietnam.
• Technical Support Programs: Through coordination with engineering universities and global technical partners, provide grants for prototyping and material research to improve domestic capabilities.

3. Fiscal and Tariff Reforms: Balancing Protectionism with Competitiveness

The current duty structure in Pakistan often protects domestic assemblers without ensuring global competitiveness or consumer welfare. While protection is needed for nascent industries, unchecked tariff walls may lead to inefficiency and reduced innovation.

Recommendations:

• Tariff Rationalization: Streamline the current structure by offering reduced tariffs on import of high-efficiency technologies, hybrid systems, and precision tools. At the same time, discourage the import of luxury vehicles that strain foreign reserves.
• Predictable Tax Policy: Introduce a long-term auto sector fiscal policy (at least 5 years) to prevent frequent shifts in duties and levies. This ensures certainty for investors and supports strategic planning.
• Tax Holiday for EV Startups: A time-bound tax holiday for local electric vehicle (EV) manufacturers can act as a stimulus to encourage early adoption and domestic innovation.

4. Integration with CPEC and Regional Trade

The China-Pakistan Economic Corridor (CPEC) offers a strategic opportunity to integrate Pakistan’s auto sector into regional value chains. With improved logistics and infrastructure, Pakistan can aim to become a manufacturing hub for both domestic and export markets.

Recommendations:

• Special Auto Zones under CPEC: Establish automobile-focused special economic zones (SEZs) in proximity to Gwadar and other trade hubs to attract Chinese and regional investments.
• Transit Trade with Central Asia: The budget should earmark funds for developing road and rail connectivity to Afghanistan and Central Asia to facilitate future exports of low-cost vehicles and parts.
• Regional Trade Agreements: Accelerate negotiations under ECO and SCO to reduce tariffs and enhance regulatory coordination for auto-related goods.

5. Green Transition and Environmental Standards

The global automotive industry is transitioning toward green technologies, and Pakistan must not lag behind. The environmental cost of traditional combustion engines, coupled with rising oil import bills, necessitates a structured shift toward cleaner mobility.

Recommendations:

• EV Infrastructure Development: Allocate funding in the budget for nationwide EV charging infrastructure, especially in major urban centers and highways.
• Subsidies for EV Buyers: Provide targeted subsidies for electric two-wheelers, three-wheelers, and small electric cars to encourage mass-market adoption. Coordinate with local banks for EV-specific financing schemes.
• Enforce Emission Standards: Gradually enforce Euro-5 or better emission standards for all new vehicles sold, with compliance-linked tax incentives for manufacturers.

6. Consumer Affordability and Demand Generation

In Pakistan, the automobile-to-population ratio is significantly lower than regional counterparts, indicating latent demand. However, high vehicle prices and stagnant incomes have dampened purchasing power.

Recommendations:

• Support for Low-Income Consumers: Consider offering voucher schemes or interest-free loans for bikes and small family cars, especially for women, students, and gig workers (e.g., delivery riders).
• Used Car Market Regulation: While importing used cars can provide affordability in the short run, excessive inflows hurt local industry. Rationalize the used car import policy, while encouraging certified used vehicle programs by domestic players.
• Auto Leasing Regulations: Encourage development of regulated vehicle leasing platforms, particularly for SMEs and rural areas where transport infrastructure is limited.

7. Investment Protection and Ease of Doing Business

Foreign and domestic investors in the automobile sector demand stability, transparency, and legal protections. Unanticipated regulatory changes and bureaucratic delays deter long-term investments.

Recommendations:

• Investment Dispute Resolution Mechanism: Establish a dedicated auto industry ombudsman or dispute resolution tribunal to address grievances swiftly.
• Simplify Regulatory Approvals: Implement a single-window digital clearance system for factory establishment, imports, and certifications.
• IP Protection and Quality Standards: Strengthen legal frameworks around patents, designs, and branding to ensure fair competition and encourage R&D.

8. Human Capital and Workforce Development

A robust auto industry depends not only on infrastructure but on skilled labor. As vehicle technologies evolve, workforce training must keep pace to meet production and maintenance needs.

Recommendations:

• Vocational Training Programs: The budget should include allocations for automotive-specific technical training, in collaboration with NAVTTC and the private sector.
• University Collaboration: Establish industry-academia programs focusing on automotive electronics, AI integration in vehicles, and mechatronics engineering.
• Gender Inclusion: Promote programs to include women in technical and managerial roles in the auto sector, through dedicated scholarships and workplace reforms.
• 9. Strategic Autonomy in Geopolitical Context

In light of evolving regional geopolitics—such as U.S.-China trade tensions, instability in Afghanistan, and shifting Gulf dynamics—Pakistan must build strategic autonomy in its industrial capabilities.

Recommendations:

• Diversify Supply Chains: Encourage the sourcing of parts and raw materials from a broader range of countries, reducing dependency on a single trade partner.
• Defense-Auto Synergy: Explore synergies between defense manufacturing and civilian auto sectors, particularly in armored and utility vehicle segments.
• Export Incentives for Strategic Partners: Identify friendly countries (e.g., African nations, Central Asia, and Gulf countries) for export push, with budgetary support in terms of marketing, trade missions, and soft loans.

10. Public Transport and Mobility Strategy

While individual car ownership is rising, Pakistan still lacks a robust public transport system. A thriving local industry can support mass transit solutions if appropriately guided.

Recommendations:

• Local Bus Manufacturing: Provide subsidies and R&D support for manufacturing electric and hybrid buses locally, to be deployed in cities like Karachi, Lahore, and Islamabad.
• Government Procurement Quotas: Allocate a share of public procurement contracts (e.g., police vehicles, ambulances, garbage trucks) to local manufacturers.
• Smart Mobility Projects: Use budget allocations to pilot smart urban mobility projects integrating ride-sharing, electric bikes, and digital transport platforms.

Conclusion

The automobile industry in Pakistan is not merely a consumer-driven sector; it is a strategic industry at the crossroads of economic development, technological transformation, and geopolitical positioning. In crafting the annual budget, the government must adopt a holistic, forward-looking approach that balances industrial growth with affordability, sustainability, and resilience.

While existing investments and potential partnerships offer a promising base, policy clarity and consistency are essential to unlock long-term gains. A dynamic, inclusive, and strategically guided automobile policy—supported by a robust fiscal framework—can not only drive the economy forward but also bolster Pakistan’s stature in the global industrial landscape.

This exclusive article has been published in Automark’s July-2025 printed and digital edition. Written by @Aqeel Bashir

The global electric vehicle (EV) industry is evolving at breakneck speed, with alliances between Japanese automakers and Chinese EV tech firms setting the tone for a new era of cooperation. This wave of strategic joint ventures reflects a clear reality: EV leadership is now rooted in

China, and global players are aligning with this shift to stay competitive.

Yet, while these developments reshape mobility worldwide, Pakistan remains largely absent from the global EV supply chain—a missed opportunity that could become a major economic setback.

Global Alliances: Japanese Automakers & Chinese EV Giants

Here are key partnerships redefining the global auto landscape:

• Toyota & BYD: Co-developing BEVs like the bZ3, combining Japanese quality with Chinese battery and motor expertise.
• Toyota & FAW: Launching new localized BEV models such as the bZ3C crossover and bZ3X SUV for the Chinese market.
• Mazda & Changan: Introducing EVs like the EZ-6 and Arata, both developed in China under their joint venture.
• Nissan & Dongfeng: Investing ¥10 billion by 2026 to expand local EV production and innovation in China.
• Honda & DeepSeek: Integrating Chinese AI into future EVs for enhanced autonomous and driver-assist features.

The Global Supply Chain Shift — Where is Pakistan?

Despite having favorable demographics, policy frameworks, and a growing interest in EV adoption, Pakistan has not yet established itself as a meaningful part of the global EV value chain.

The key challenges:

• Lack of EV parts localization

• Inconsistent policy execution
• Underdeveloped vendor ecosystem
• Limited foreign direct investment (FDI)

Meanwhile, countries like Thailand, Vietnam, and Indonesia are actively working to position themselves as next-generation EV manufacturing hubs—especially to serve markets looking for alternatives beyond China.

Pakistan’s Strategic Advantage — The China Factor

However, Pakistan has one unique geopolitical advantage: its strategic alignment with China.

As the global EV market begins to bifurcate—with China on one side and the Western world on the other—Pakistan can strategically position itself as a bridge and an extension of China’s EV supply chain for exports to Africa, the Middle East, and even Europe.

Why This Matters:

• China already leads in batteries, motors, electronics, and software for EVs.

·         Pakistan has strong trade ties, CPEC infrastructure, and political alignment with China.

• Japan, Korea, and Europe may soon seek alternate regional bases for EV component manufacturing due to global tensions and rising costs in China.

This opens the door for Pakistan to become a secondary hub or complementary base for global EV supply and production—if it acts fast.

Policy Direction: What Pakistan Must Do Now

To seize this opportunity before it is overtaken by regional competitors like Thailand, Pakistan must:

1.      Develop and enforce a strong, long-term EV industrial policy

• Include clear roadmaps for EV part localization, vendor development, and supply chain integration.

2.      Establish EV manufacturing clusters or special economic zones (SEZs)

• Equipped with charging infrastructure, R&D labs, and incentives for FDI.

3.      Leverage CPEC and Chinese partnerships to co-develop EV components

• Batteries, power electronics, controllers, and motor systems.

4.      Invest in skill development and technical training

• Enable the local workforce to meet international quality and compliance standards.

5.      Collaborate with global OEMs and Tier-1 suppliers

• Offer Pakistan as a low-cost, strategically located manufacturing base.

Key Takeaway: Be the Next EV Hub Before Others Do

The global EV race is intensifying, and Pakistan stands at a strategic crossroads. While China’s dominance in EV technology and supply chains is firmly established, Pakistan has the unique chance to align closely with China and integrate itself as a vital player in this ecosystem. Doing so would enable Pakistan to benefit from knowledge transfer, component manufacturing, and regional exports.

Meanwhile, a geopolitical divide is emerging—with China leading one side and Western

markets forming the other. This presents a critical opening for Pakistan to position itself as a neutral bridge and an attractive export base, capable of serving both sides with competitively priced EV components and vehicles.

As Japan deepens its partnerships with Chinese EV firms, Pakistan can step in as a

complementary manufacturing base, offering low-cost production, proximity to China, and regional access to South Asia, the Middle East, and Africa.

However, Thailand and ASEAN nations are already moving fast, attracting EV investments through clear policy, infrastructure, and incentives. If Pakistan delays, it risks being left behind as these nations become the preferred global supply chain hubs after China.

Currently, Pakistan’s role in the global EV landscape is marginal. But with strategic vision, consistent policy implementation, and bold action, Pakistan can scale up to become a regional EV hub—one that serves not just local demand but supports global automakers in building the future of electric mobility.

The opportunity is real; the timing is critical—and the window is closing fast.

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

China’s Chery Automobile is counting on conquest sales from both volume and premium customers with the Omoda 9, a well-equipped, competitively priced midsize SUV from one of its two main European brands.

Chinese brand Omoda has begun sales of the Omoda 9 midsize plug-in hybrid SUV in its core European markets as its parent Chery tries to pivots away from gasoline cars.

The Omoda 9 sits above the Omoda 5 compact SUV and comes with a large 34-kilowatt hour battery to give an electric-only range of 145 km (93 miles)

It is 4770-mm long and will compete against plug-in hybrid versions of the Skoda Kodiaq, Toyota RAV4, BYD Seal U and Mazda CX-60 in Omoda’s European markets of Spain, the U.K., Poland and Italy.

Chery was the fastest growing Chinese automaker in Europe in the first two months with sales of 8,000, up 4,271 percent on the year before, according to figures from market researcher Dataforce.

Chery’s growth has mainly come from gasoline models, which accounted for 78 percent of the company’s sales.

Chery sells gasoline versions of the Omoda 5 and Jaecoo 7 compact SUV. Jaecoo also offers a plug-in hybrid version of the Jaecoo 7, using an 18 kilowatt-hour battery. The Omoda 5 also available as an all-electric model.

Omoda 9 gets lots of standard equipment

Chery will offer one version of the Omoda 9 plug-in-hybrid with a long list of standard equipment, including technology usually restricted to higher-grade models such as a head-up display, a 1.3-meter-long sunroof, heated and ventilated seats front and rear, and a 14-speaker Sony stereo system.

The dashboard is dominated by a large curved 24.6-inch information panel that incorporates a touchscreen.

The so-called Super Hybrid System (SHS) packages a 143 hp, 1.5-liter gasoline engine and three electric motors to give a claimed combined power output of 443 hp. Omoda says the car will accelerate from 0 to 100 kph (62 mph) in 4.9 seconds.

One of the three motors is mounted on the rear axle to give the car all-wheel-drive capability. Different driving modes including Eco, Normal, Sport, Mud, Snow and Off-Road change the way the power is delivered.

The car is priced at 44,990 pounds ($58,220) in the U.K., Chery’s second largest market in Europe after Spain. The price is pitched above the entry Skoda Kodiaq iV plug-in hybrid at 41,935 pounds (€54,000), with the Omoda aiming to tempt customers with more power and equipment.

The Omoda 9 will be followed by the Omoda 7 SUV that slots below but above the 5, Chery U.K. head Victor Zhang told Automotive News Europe last year, without giving timings. A small SUV badged 3 will follow after the 7, Zhang said.

The Omoda 9 will be followed by the Omoda 7 SUV that slots below but above the 5, Chery U.K. head Victor Zhang told Automotive News Europe last year, without giving timings. A small SUV badged 3 will follow after the 7, Zhang said.

Omoda and Jaecoo are Chery’s export brands. The company has recently said it would offer its Tiggo brand in select eastern European markets, starting with the midsize Tiggo 8 plug-in hybrid . Models in the Tiggo range are also sold under the Italian DR brand as well as Ebro in Spain.

Chery aims to become a plug-in hybrid leader in Europe, the company has said. Plug-in hybrids are not subject to the same tariff increases recently applied to Chinese built-EVs by the European Union and are increasingly being offered by Chinese brands as a way to lower their average CO2 as EV sales are constrained by the tariffs.

HUBCO Green (Private) Limited (HGL), a subsidiary of The Hub Power Company Limited (HUBCO), in a transformational partnership with Pakistan State Oil (PSO) inaugurated its first state-of-the-art New Energy Vehicle (NEV) Charging Station on Lahore-Islamabad Motorway (M-2), one of the busiest travel corridors of Pakistan.

As part of its strategic entry into the NEV market through BYD Pakistan – Mega Motor Company (MMC), HGL has a long-term plan to develop a nationwide NEV charging infrastructure. HGL will deploy a network of chargers every 200 km from Karachi to Peshawar, alleviating range anxiety for NEV users and promoting environmental sustainability.

Along with HGL’s EV Charging Station, this PSO Experience Hub on Magic River Rest Stop also features a Vibe Café and Store to provide customers with a space that offers both comfort and convenience while their vehicles recharge.

Speaking at the launch event, Mr. Kamran Kamal, CEO, HUBCO, stated: “HUBCO Green is a strategic extension of our long-term view on where the country’s mobility landscape is headed. At the heart of our mandate is a commitment to promote sustainability and an environmentally responsible automobile sector. Our focus is on building NEV charging infrastructure where it matters most, creating value with the right partners and at the right scale.This strategic partnership with PSO is a step in operationalizing that vision. With the inauguration of this NEV charging station, we reaffirm our commitment to a cleaner, greener Pakistan.”

Also present at the event, Mr. Danish Khaliq, VP Sales & Strategy, BYD-MMC said:“ BYD, the world’s No. 1 NEV manufacturer, entered the Pakistan market with a vision to drive electric mobility and sustainability in the country’s automobile sector. Following the installation of charging stations in key urban cities, this launch marks the first of many in our long-term plan to develop a nationwide charging network along intercity routes, enabling NEV users to travel long distances with ease and convenience. Our advanced technology supports fast charging, significantly reducing wait times for travelers on long-haul journeys. This partnership with PSO reflects our commitment to supporting Pakistan’s transition to NEV adoption and ensuring the country is future-ready.”

Mr. Mohsin Mangi, CSTO, PSO, asserted: “At PSO, we’re driving Pakistan’s energy transformation. Our partnership with HUBCO Green is a major milestone toward sustainable mobility. By turning our widespread retail network into clean-energy hubs, we’re preparing the foundation for a smarter, more environmentally friendly Pakistan. The launch of this EV charging station isn’t just about technology, it reflects our commitment to protecting the environment and serving today’s traveler. And we’re not stopping at EVs. With VIBE, we’ve introduced modular, SEED-certified convenience stores connected to our e-commerce platform, designed for seamless, sustainable retail on the move. VIBE Café offers barista-quality coffees and artisanal treats for those little moments of indulgence. Through Asaan Safar, we’re enhancing travel comfort with executive amenities along key routes, all coordinated through the Fuelink app. Each of these projects is part of one clear goal: to support every traveler, with cleaner energy, elevated services and genuine care.”

The station features a 60kW fast charger that can simultaneously charge two vehicles, delivering a 50% charge, for instance, to the BYD Atto 3 in less than 30 minutes, which is equivalent to 160–200 km, ideal for staying powered up while on the go.

Leveraging HUBCO’s focused ambitions in the NEV sphere through BYD-MMC and with PSO’s vast retail footprint, HGL lays the groundwork for a reliable, countrywide NEV charging network that supports Pakistan’s evolving mobility needs and its broader environmental goals.

Farmers in Sindh are urging the Federal Board of Revenue (FBR) to reduce customs duties and sales tax on tractors in the upcoming 2025-26 federal budget. The Sindh Chamber of Agriculture (SCA) has requested that the customs duty on imported tractors be lowered from 15% to 5% to ease financial pressure on the struggling farming community.

In a formal proposal submitted to FBR Chairman Rashid Mahmood, the farmers also called for a reduction in the sales tax on both locally assembled and imported tractors—from the current 14% down to 5%. They emphasized that this is not a call for tax exemption but for fair treatment, similar to tax rates applied to other sectors like automobiles.

SCA Senior Vice President Nabi Bux Sathio highlighted that Pakistan’s agriculture sector, despite being a major contributor to the GDP and employing millions, continues to suffer from limited government support. Farmers are battling rising costs, climate change impacts, water shortages, and poor crop pricing, all of which hinder productivity and sustainability.

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The SCA also proposed broader tax reforms in their submission. These include eliminating Additional Customs Duty (ACD), gradually removing Regulatory Duty (RD), and restructuring the customs tariff to support long-term agricultural growth. These steps, they argue, would make essential farming equipment more accessible.

Currently, medium- and small-scale farmers struggle to afford tractors and other machinery due to high taxes and limited financing options. Reducing these costs could significantly boost crop yields and overall agricultural efficiency, especially in rural Sindh, where farming is the main livelihood.

As the FBR prepares the federal budget, officials have confirmed that these proposals are under review. Farmers and agricultural bodies hope the government will respond with practical steps to support a sector that remains the backbone of Pakistan’s economy.

True Hybrid Electric, Pakistan’s first locally assembled plug-in hybrid

MG Pakistan has reaffirmed its unwavering commitment to quality and customer satisfaction by swiftly airlifting critical vehicle components in response to recent geopolitical disruptions. These proactive measures were taken to minimize delays in the delivery of the MG HS PHEV – True Hybrid Electric, Pakistan’s first locally assembled plug-in hybrid.

The ongoing geopolitical situation caused temporary shipment rerouting, resulting in minor delays in select color variants and the delivery of free 7KW chargers. In light of these challenges, MG Pakistan responded decisively by airlifting essential kits and components to resume production at full capacity.

“We are pleased to share that production is now running at full speed, and deliveries are resuming immediately,” said Syed Asif Ahmed – General Manager Marketing Division – MG Pakistan. “Our top priority is to ensure our customers receive their vehicles with minimal disruption.”

MG Pakistan expressed gratitude to its valued customers for their patience, trust, and confidence. The company emphasized that its dedication to safety, quality, and timely delivery remains stronger than ever.

A new Executive Center Motor Registration facility has been launched in Karachi’s Clifton to offer car registration services to residents in the area, announced Sindh Excise Minister Mukesh Kumar Chawla.

Speaking to the media at the inauguration, the minister said this is the first of many new registration centers to be opened across Sindh, including other districts of Karachi, after Muharram.

The Executive Center is located at Marina Clifton Building, Plot No. BC12, Zone C, Block 7, Clifton aims to reduce public rush at the Civic Center and offer convenience.

He explained that many people living in areas like Clifton and DHA found it difficult to visit the Civic Center. This center will now handle the registration needs locally and easily.

The center will remain open from 9 am to 5 pm during its initial phase. It will operate 24/7 after Muharram, offering full services linked to the Civic Center online system.

Secretary Excise Sindh Mohammad Saleem Rajput, Excise DG, department directors, and several media personnel attended the opening event to mark the launch of the new public facility.

Mukesh Kumar Chawla also said that new centers will be built under public-private partnerships in Hyderabad, Sukkur, and Larkana.

Eventually, motor registration services will be expanded to district levels across Sindh to ensure wider access and reduced congestion in urban centers. A bill has already been passed for this.

On a separate note, the minister addressed media concerns about drug operations. He criticized the media for only highlighting small drug busts and ignoring major drug seizures.

He said anti-drug operations were being conducted effectively across Sindh. He urged the media to focus on large-scale drug recoveries to support the government’s efforts to control narcotics.

• Hyundai Motor Group showcases its future mobility vision and technology innovations at the FISITA World Mobility Conference 2025 in Barcelona, Spain
• Hyundai Motor Company President and CEO José Muñoz delivered the Principal Speech, underscoring Hyundai’s journey as a mobility leader
• ChangHwan Kim, Executive Vice President and Head of Electrification Energy Solutions Tech Unit at Hyundai Motor Group, began his term as the first Korean FISITA President
• The all-new NEXO and the enhanced fuel cell system are exhibited during the conference, highlighting the Group’s cutting-edge hydrogen mobility technology

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Hyundai Motor Group (the Group) reaffirms its vision for the future of mobility and its leadership in technological innovation at the La Fédération Internationale des Sociétés d’Ingénieurs des Techniques de l’Automobile (FISITA) World Mobility Conference (WMC) 2025, held from June 3 to 5 at the Palau de Congressos de Catalunya in Barcelona, Spain.

FISITA, the world’s largest association of academic institutions in the automotive field, unites engineering societies from 36 countries and has cultivated a global network of approximately 210,000 automotive researchers since its establishment in 1948. Its biennial conference, FISITA WMC, convenes around 2,000 distinguished executives and engineers from the mobility industry.

As Prime Partner of FISITA WMC, the Group underscores its commitment to shaping the future of sustainable mobility by delivering a networking program, technical sessions, paper presentations, and an exhibition. Hyundai Motor Company President and CEO José Muñoz set the tone for the conference with his Principal Speech, engaging with industry leaders and engineers under the theme of Hyundai’s journey as a mobility leader.

”As an engineer myself, it was a real pleasure to share Hyundai’s mobility journey and engage with participants at the FISITA World Mobility Conference. Under the leadership of Hyundai’s Executive Chair, we are pushing the technological boundaries of what’s currently possible to improve how people and goods will move more safely, sustainably and conveniently. Thank you to the organizers and congratulations to my colleague ChangHwan Kim for being named as the first Korean president of FISITA.”

ChangHwan Kim, Executive Vice President and Head of Electrification Energy Solutions Tech Unit at Hyundai Motor Group, who was inducted as president of FISITA at the conference, will guide the organization throughout his tenure until May 2027, overseeing the Executive Board and Committees.

The Group will also host a special technical session from June 4 to 5, highlighting its latest advancements and collaborative research with European partners. Key topics include methodologies and case studies on the use of software and hardware, such as driving simulators for virtual performance verification, new bushing technologies to enhance ride comfort and performance in EVs and research on ensuring chassis reliability in software-defined vehicles using prognostics and health management technologies.

Under the theme ’Clearly Committed, FCEV Technology,’ the all-new NEXO and the enhanced fuel cell system will be exhibited, reiterating Hyundai Motor Group’s leadership in hydrogen mobility and showcasing its dedication to driving innovation as a smart solutions provider across the full mobility ecosystem.

By sharing its vision and technological capabilities throughout the conference, Hyundai Motor Group aims to foster global academic collaboration in mobility research while solidifying its role as a catalyst for innovation in the automotive industry, all in line with its vision of ‘Progress for Humanity.’

Vietnam’s transformation into a manufacturing powerhouse has been nothing short of remarkable. While the country is globally recognized for its electronics and textile exports, the automotive and auto parts manufacturing industry has emerged as a rising star, propelled by forward-looking government policies, tax incentives, regional trade integration, and a strong focus on localization and sustainability.

Today, Vietnam’s auto parts manufacturers are not only meeting domestic demand but also scaling up production volumes to integrate into global supply chains. This article explores how Vietnam is positioning its auto parts sector as a competitive export-oriented industry and what lessons can be drawn for emerging economies.

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I. A Strategic Vision: Automotive Industry Development to 2035

Vietnam’s automotive industry began evolving with the Automobile Industry Development Strategy to 2025, Vision to 2035, approved by the Prime Minister in 2014. The strategy emphasizes a multifaceted approach:

• Meeting domestic demand
• Expanding into export markets
• Strengthening supporting industries
• Enhancing competitiveness
• Integrating into global supply chains

This long-term roadmap provides the policy certainty and direction necessary to attract foreign direct investment (FDI) and encourage local players to build capacity.

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II. Tax and Incentive Framework to Boost Local Production

The Vietnamese government has implemented various tax and financial incentives to stimulate auto parts manufacturing:

• Zero percent preferential import tax on auto components used for local assembly (2018–2027). This helps local assemblers reduce costs and boosts demand for localized components.
• Special tax incentives for the automotive support industry (2020–2024), encouraging manufacturers to localize supply chains.
• Reduced special consumption tax rates on battery-powered vehicles compared to internal combustion engine (ICE) vehicles—indirectly incentivizing the development of parts used in EVs.

These tax policies not only make Vietnamese components competitive within ASEAN but also encourage companies to expand production and explore global markets.

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III. Leveraging Trade Agreements for Global Market Access

Vietnam has strategically positioned itself by entering several Free Trade Agreements (FTAs), which help reduce tariffs and open access to high-value markets:

• ASEAN Trade in Goods Agreement (ATIGA): Enables duty-free movement of auto parts and vehicles across ASEAN member countries. This gives Vietnamese manufacturers a clear competitive edge in regional supply chains.
• European Union-Vietnam Free Trade Agreement (EVFTA): This landmark deal grants Vietnamese auto parts exporters preferential access to the EU—one of the world’s largest automotive markets. Gradual tariff reductions on imported vehicles and components enable Vietnamese firms to integrate into European production networks.
• Participation in CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) and other FTAs further cements Vietnam’s role as a global supplier of competitively priced, high-quality automotive parts.

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IV. Green Mobility Push: EV and Eco-Friendly Parts Manufacturing

In line with global trends, Vietnam’s Ministry of Industry and Trade has prioritized eco-friendly vehicle production, including electric, hybrid, and solar-powered cars. This has significant implications for auto parts manufacturers:

• A shift in demand toward electrification components such as batteries, electronic control units (ECUs), sensors, and wiring harnesses.
• Local parts suppliers are being encouraged to diversify into battery technologies, lightweight materials, and energy-efficient components that meet international green standards.

Government-led pilot programs, green finance availability, and training centers are helping SMEs adopt new technologies and pivot toward sustainable component production.

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V. Strategic Goals for the Coming Decade

To overcome these challenges and solidify its role in global automotive supply chains, Vietnam has set ambitious targets:

• Vehicle Sales: Increase domestic vehicle sales to 1–1.1 million units by 2030—this will provide a steady foundation for parts manufacturers to scale.
• Export Milestones: Export 90,000 cars with a total value of US$10 billion, and even more in supporting parts and components.
• Industrial Clusters: Continue developing specialized auto parts manufacturing clusters in regions like Hai Phong, Vinh Phuc, and Ho Chi Minh City to reduce logistics and operational costs.
• Technology Upgradation: Invest in automation, AI integration, and high-precision engineering for next-generation components.

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VI. Success Stories and Industry Leadership

Vietnam is already home to some successful examples:

• THACO Group, Vietnam’s largest auto and parts manufacturer, exports components to Korea, Malaysia, and Japan, and recently began supplying to Europe.
• VinFast, the country’s first homegrown car manufacturer, has committed to exporting EVs and parts to North America and Europe, driving demand for localized parts.
• Several Japanese, Korean, and European firms have invested in parts manufacturing plants—bringing technology, training, and access to export markets.

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VII. What Can Emerging Countries Learn?

Vietnam’s experience offers valuable lessons for other developing nations seeking to build export-oriented auto parts industries:

1. Stable Long-Term Policy Vision ensures investor confidence and gives companies time to plan localization.
2. FTAs and Trade Integration allow easier access to global markets and reduce entry barriers.
3. Supportive Tax Incentives make localized production more attractive than imports.
4. Green Transition planning ensures long-term relevance of parts manufacturers.
5. Public-Private Collaboration allows coordinated strategy on technology, finance, infrastructure, and skills.

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Suggestion: Vietnam Gears Up for a Bigger Role in Global Auto Parts Supply Chains

Vietnam is no longer just a low-cost manufacturing base—it is becoming a smart, globally integrated auto parts producer. With its government’s proactive policies, improving production standards, growing green initiatives, and strong trade access, Vietnam is poised to multiply its parts manufacturing volume and become a critical supplier in Asia, Europe, and beyond.

For Pakistani or regional manufacturers looking to follow suit, Vietnam provides a replicable framework—start local, think global, and build strategic alliances. The road to global competitiveness starts with consistent policy, strong trade linkages, and relentless focus on quality and innovation.