Automark

Learning from Past – Earning from Present – Growing from Future

Episode: 3

Summary of the Last Articles

In the previous article, we mentioned the countries that have achieved economic development through the auto industry. Over the past century and a half, the 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. This journey of development through the auto industry is still ongoing, and China is a living example of this, while Pakistan’s development is also inseparable from the auto industry.

Then we reviewed the auto market and saw which models of vehicles are in trend in Pakistan in particular and the rest of the world in general and what are the reasons for them. The result was that even today SUVs are being liked for many reasons and the trend of buying and using them continues. After that, we reviewed the businesses related to EV vehicles and the potential opportunities and their types and brought to the fore 14 new businesses that can be adopted and started new types of small businesses that are feasible with proper investment, hard work and attention and can be implemented immediately and in the near future and can be expanded and expanded over time and as needed.

Now Read On….

It may come as a surprise to some that before the current popular IC engine auto industry came into existence, the auto industry started with electric motor vehicles and EV vehicles maintained their place in the regular market for a few decades until the end of World War II and IC engine vehicles made significant progress and left the EV industry behind. Here we review EV history so that we can think about the development of the current and future auto industry and the EV industry in the light of the past.

History of Electric Vehicles

During the 20th century, the main manufacturers of electric vehicles in the United States included Anthony Electric, Baker, Columbia, Anderson, Riker, Milburn, Bailey Electric, and Thomas Eddison’s General Electric , Detroit Electric and Thomas Eddison Electric. Their electric vehicles were quieter than gasoline-powered ones and did not require gear changes.

Cause of Preference EV V/s ICE

Electricity was among the preferred methods for automobile propulsion in the late 19th and early 20th centuries, providing a level of comfort and an ease of operation that could not be achieved by the gasoline-driven cars of the time. The electric vehicle fleet peaked at approximately 30,000 vehicles at the turn of the 20th century.

Electric cars remained popular until advances in internal-combustion engine (ICE) cars and mass production of cheaper gasoline- and diesel-powered vehicles, especially the Ford Model T, led to a decline.

Early Developments

1881, Gustave Trouvé presented the world’s first publicly presented full-scale electric car powered by an improved Siemens motor at the Exposition de Paris.

1882, The significant Early Electric Vehicle started from Electromote, the world’s first Trolleybus by Werner von Siemens, Berlin Germany.

1884, Thomas Parker built an electric car in Wolverhampton, England using his own specially-designed high-capacity rechargeable batteries, although the only documentation is a photograph from 1895.

1888, the German Andreas Flocken designed the Flocken Elektrowagen, regarded by some as the first “real” electric car.

1889, Thomas Edison had this car built about 1889 to investigate electricity as a power source for automobiles. The three-wheeled vehicle has two electric motors, each separately connected to one of the front wheels. Having successfully operated the car, Edison put it aside for several years.

1894, the Electrobat, one of the world’s first successful electric automobiles, was patented by Henry G. Morris and Pedro G. Salom.In New York City, a fleet of twelve hansom cabs and one coach, based on the design of the Electrobat II, formed part of a project funded in part by the Electric Storage Battery Company of Philadelphia.

1897, The first self-propelled Taxi’s in London, Walter Bersey’s 1897 cab (as pictured above) were battery powered and had a top speed of 9 mph and a 30 mile range. The Baker range of cars were able to travel 50-80 miles on a single charge, but at a maximum of 14 mph. A batch of 12 cabs entered service for the London Electrical Cab Company on 19 August 1897.

1897, The Londen Electrical Cabs, which charged the same rate as the horse-drawn alternative, proved popular and the fleet expanded to 75 vehicles. However, the heavy weight of the vehicle’s batteries caused excessive tire wear, vibration and increased noise.

Six Electric Cars Held Land Speed Record in 19th Century 

1899, The rocket-shaped La Jamais Contente, driven by Camille Jenatzy, which broke the 100 km/h (62 mph) speed barrier by reaching a top speed of 105.88 km/h (65.79 mph) in 1899.

     1899, and 1900, more electric cars were sold in the United States than any other type of vehicle.

      1903, London boasted more electric cars than vehicles with internal combustion engines.

 1914, Edison and Henry Ford himself planned to develop a low-cost electric car.  

Although better known for inventions such as the light bulb and motion pictures, Edison also designed three electric cars using his nickel-iron Edison Storage Batteries.

By the time Edison’s battery (a longer-lasting, lighter-weight improvement over previous lead-acid batteries) was ready for this journey, electric cars had already been on the road for more than 15 years.

Thomas Edison Model, 1,000-mile  “ideal tour” in 1910 Hampshire’s Washington.

Cause of Preference ICE V/s EV

ICE cars’ much quicker refueling times and cheaper production costs made them more popular. However, a decisive moment came with the introduction in 1912 of the Self Starter Motor that replaced other, often laborious, methods of starting the ICE, such as hand-cranking.

1920-1935, Decline of Electric Vehicles

Apart from battery electric cars facing rugged competition from gas-fueled cars advances like Ford’s Model T, there was rapid progress made on America’s road infrastructure permitting longer distance travel on motorway systems that complemented long-range capabilities offered by fuel-powered automobiles.

Moreover, advancements in oil extraction technology made fuel cheaper, which made fuel-powered vehicles more fuel-efficient, faster, and require fewer recharges. Consequently, by 1935, electric vehicles had nearly vanished, and the remaining ones were mainly restricted to niche markets, such as taxi and delivery van services within cities.

Renewed Interest in Electric Cars

The journey of electric automobiles passed another milestone in the late 20th century. The public sphere underwent a substantial shift during this period, bolstered by external and internal factors in the automotive industry.

60s & 70s, Electric Cars Revival

1960s, decades gasoline cars dominated because oil was so profitable. However, rising fuel costs caused drivers to look for an alternative power source.

This helped to make electric vehicles look cutting edge, as well as the cost of fuel reviving electric cars’ popularity once again.

1970s, saw the biggest step towards the electric cars we know today.

1968-1973, Gas Prices Sparked Increased Interest in Electric Vehicles

In an unexpected turn, brought upon us largely due to geopolitics, oil prices surged worldwide from 1968 onwards. Embodied most notably by the 1973 Oil Crisis, these years witnessed an acute black gold shortage with subsequent skyrocketing prices.

Consequently, countries around the globe spontaneously started their search for alternate fuel sources – sparking a renewed interest in electric vehicles that marked a notable turn in the evolution of electric cars. It offered scope for cost-effectiveness as well as energy efficiency.

1971, Environmental Movement & Interest in EV

Another important story – the rise of environmental consciousness worldwide. Most representatives were instances like Earth Day’s inception in 1970 and Greenpeace’s establishment a year later, both potent symbols driving appreciated concerns regarding environmental degradation.

Taking center stage was air pollution from Internal Combustion Engine (ICE) powered vehicles, particularly prominent within city limits. This amalgamation of societal awareness and new academic research diverted attention towards cleaner solutions like electric cars.

New Millennium of Electric Cars Mass Market

Fast forward to the late 20th century and tech gadgets such as computers, to mobile phones and the internet, we entered an age of modern technology. This gave engineers the scientific know-how needed to modernize the electric car.

Start of Rechargeable Lithium-ion Batteries

Stanley Whittingham (British inventor) created the world’s first rechargeable lithium-ion batteries. This is the same electric car battery that we use in electric vehicles today, almost 50 years later!

However, the technology wasn’t quite there yet to make electric cars a serious rival to fuel cars. Although the batteries saw great advancements, but needing recharging more frequently in a time where charging stations were uncommon.

1973, Next Generation’s Electric Vehicles

With enough momentum building behind them, it was no surprise when the American Motor Company launched its innovative “Electrobus” concept in 1973 at the World Energy Conference held in Bucharest.

This revolution ushered into being not just an all-alternative fuel vehicle but an entire line-up of efficient battery-operated buses aimed at mass transit solutions rather than individual mobility efforts thus far seen.

Not to be left behind for long, other companies soon jumped onto this bandwagon, making the 70s a pivotal era in discovering potential attributes distinctive to this new generation of electric vehicles.

1974-1977, Increasing Sales & Popularity of EV

Between 1974 and 1977, the maturing industry saw various companies start “low-speed” electric vehicle production. These EVs became popular alternatives for short commutes, generally limited by suburban boundaries like golf courses and university campuses.

Sales particularly peaked around tight-knit communities – a testament to their efficacy in small-scale local transportation, thereby creating foundations for future growth within this niche.

1979, Decrease in Interest in Electric Cars

However, the latter part of the decade witnessed an abrupt nosedive in interest. Prices crashed as soon as oil-producing countries ramped up the supply lines again towards the end of the decade. Fuel once more emerged as a cheaper alternative to electricity due to its ease of use and mass acceptance.

New Era for Electric Cars

1990-1992, New Regulations Renew Interest in EV

Following the decline in interest in electric cars during the late 20th century, a new horizon dawned at the start of the 1990s that would shape the future of this industry. Legislation played an instrumental role in driving forward the evolution of the electric car. Particularly, California introduced stringent emission standards, which stipulated that by 2003, a certain percentage of all automobiles sold within ‘The Golden State’ had to be Zero Emission Vehicles (ZEVs).

This gave rise to more research and development into creating viable electric vehicles, with many automotive manufacturers acknowledging the potential for these greener alternatives.

1997, Mass Production of Hybrid Cars

Moving through this new era of electric and hybrid vehicles saw one of the most transformative developments in automobile history:

The launching of Toyota’s Prius model in Japan

The world’s first mass-produced hybrid car.

It combined a conventional internal combustion engine with an electric propulsion system, offering consumers improved fuel efficiency and reduced emissions compared to traditional, fuel-engine-powered cars. The subsequent international release saw it become a symbolic representation of eco-conscious driving worldwide.

1999, Innovations in Building Better Electric Cars

As we crossed the end years of the millennium, various industry players heavily invested in plug-in electric vehicles and found innovative approaches to enhance electronic vehicle technology further. Consider Audi’s ‘A2,’ a compact electric car with an impressive 200-kilometer range on a single charge.

This marked the inception of various advancements in battery technology, lighter construction materials, and improved aerodynamic design, perfecting the crucial balance between performance, durability, and cost-efficiency required to make these vehicles more attractive to everyday consumers.

2006, Emergence of Silicon Valley Startups in EV Industry

The significance of Silicon Valley’s entrepreneurial culture is undeniable in shaping wide-ranging trends within industries. It wasn’t long before this tech-centric land saw its first successful electric vehicle and startup: Tesla Motors Inc. Founded by entrepreneur Elon Musk, his bold vision sought to create luxury electric vehicles and establish a robust infrastructure to support sustainably powered transportation.

Setting ambitious targets while delivering technologically sophisticated products with uncompromised visual appeal sparked unprecedented industry interest, leading to more startups venturing into this domain and accelerating the staggering evolution of the electric car we still witness today.

Modern Era of Electric Cars

In this section, we’ll dive into the history of the electric and transition phase. We’ll explore the decisive events that have significantly shifted our perspective and understanding during the modern era in the evolution of the electric car.

2009-2013, Establishment of Nationwide Charging Infrastructure

The advent of a nationwide charging infrastructure marked a turning point for electric vehicles. As battery technology began to advance, providing longer mileage on a single charge than previously feasible, the necessity for an accessible and reliable network of electric vehicle charging stations became even more fundamental.

A significant turning point came when companies took up the challenge of making EV charging as convenient and easy as refueling at traditional petrol stations.

2010, Introduction of 1^st Commercially Plug-in Hybrid

Plug-in electric hybrid vehicles took center stage in 2010, with Chevrolet releasing its Volt model — arguably one of the most influential advancements in automotive history concerning alternative powertrains.

Early hybrids, which relied only on regenerative braking for electricity generation, Plug-in Electric Hybrids gave drivers an option to operate personal vehicles exclusively on electric power — a step forward towards emission-free driving while still allaying range-anxiety concerns sustainable by its fuel-powered generator.

2010, Launch of Nissan’s Leaf EV

Nissan triggered another pivotal event with their introduction of the Leaf — an affordable, mass-market-capable, entirely battery-electric vehicle. Already well-regarded within sustainability circles for bringing zero-emission mobility at an unprecedented scale before, it swiftly emerged as a global bestseller, holding aloft Nissan’s dedication to redefining commuting standards and overall environmental stewardship.

2013, Decrease in EV Battery Costs

During the last decade, a crucial change in the landscape has been the gradual decrease in the cost of producing lithium-ion batteries, the cornerstone of electric vehicle technology. 

This trend, attributed primarily to improvements in manufacturing efficiency and scaling economies of larger production volumes, augments as further reductions are expected to bring electric vehicles head-to-head with conventional internal combustion engine cars in price.

2014, Diverse Range of EV Options

The next significant metamorphosis in EVs was brought forth by auto manufacturers’ acknowledgement that one size does not fit all when it comes to our driving needs or lifestyle choices. The lineup expanded beyond compact cars and sedans, evolving into virtually every vehicular category, including SUVs, trucks and even motorcycles.

There are more EV and Automotive Past, Present & Futures businesses which we will explore in next episodes of Monthly AUTOMARK’ S Article “Grow Automotive Grow Pakistan”, INSHALLAH.

‏This exclusive article has been written by @Mumtaz Hussain, and published in Automark’s May-2025 printed/digital edition.

Abstract

This second article in the series on EVs in Pakistan: Driving the Green Shift chronicles the various pillars that qualify power for the ambitions of electric mobility in Pakistan: charging infrastructure, renewable energy integration, smart grid modernization, and battery recycling. It going onward discusses the current status: 40 chargers on the motorway, compared with global best practices benchmarked against 49,300 expressway bay in China and 25,202 public charging stations in India; past solar energy applications in Pakistan (4.1 GW of net metered capacity); and suggests a phased road map for achieving 30% EV penetration by 2030.

Introduction

The first article laid down a strategic roadmap for Pakistan’s EV introduction, setting ambitious targets under the NEVP 2020 and identifying barriers in the marketplace. This time, let us talk about the how: how will we build a ubiquitous charging network, harness clean energy, digitize the grid, and circle battery life back in? Strong infrastructure and circular practices are key for overcoming range anxiety and ensuring resilience in the grid as EVs scale throughout urban and rural Pakistan.

1. Current Infrastructure Landscape

1.1 Motorway Charging Rollout

The government approved in November 2024 the establishment of 40 fast-charging stations along the national motorways (M1-M5), approximately every 120 km apart, giving preferential tariff to the operators at PKR 39.75/unit for the motivation of operators.

1.2 Framework of the Restructuring

For EV-ready parking and chargers in all new or renovated buildings, NEECA’s ECBC 2024 is oldest on the list.

With an attraction of making higher than one hundred percent improvement, NEVP 2020 encourages converting more than 3,000 legacy CNG/fuel stations into EV charging hubs.

Matric	Value
Approved Motorway Stations	40
Planned Public Stations (2025–26)	50
Legacy CNG Stations (Conversion Pool)	3000

2. Global Benchmarks: Inspiration for Pakistan

Country	Stations	Key Initiative
China	49,300 (expressway bays)	Mandatory EV zones, public–private rollouts
India	25,202 (public chargers)	FAME‑II & PM E‑DRIVE, highway & urban focus

China’s expressway network now features charging bays at 97% of service areas, driving a 45% year‑on‑year surge in EV sales . India aligned infrastructure with demand, deploying 25,202 public chargers by December 2024 under FAME‑II .

3. Renewable Energy Integration

3.1 Solar Capacity Surge

• Net‑Metered Solar: Expanded from 1.3 GW (mid‑2023) to 4.1 GW (Dec 2024) .
• Panel Imports: 22 GW of solar modules imported in 2024, ranking Pakistan among the top global markets .

3.2 Deployment Recommendations

• Rooftop Solar Canopies: Over public parking lots in Lahore and Karachi.
• Highway Solar Farms: Co‑locate ground‑mounted arrays with BESS‑backed fast chargers.

4. Smart Grid Modernization

4.1 Grid Challenges

• T&D Losses: 18.31% of generated power lost in transmission & distribution .
• Load‑Shedding: Rural areas face 6–12 hours/day of outages .

4.2 Digital & Demand‑Side Solutions

Technology	Application	Benefit
AMI & IoT Sensors	Real‑time load monitoring	Rapid fault detection
Time‑of‑Use Tariffs	Off‑peak charging incentives	Flattened demand curves
Vehicle‑to‑Grid	EVs supply power back to grid	Peak‑load support

Pilot AMI deployments (2025–26) and V2G trials with fleets (2027–28) will enable a fully digital grid by 2030 .

5. Battery Recycling & Circular Economy
Prototype EV battery recycling plant.

As EV volumes grow, sustainable end‑of‑life management for high‑value batteries is critical:

• Global Leaders: Li‑Cycle’s new facility in New York will process enough material to support production of 180,000 EVs/year .
• Circular Practices in Pakistan:
  • Battery Buy‑Back Programs: Incentivize return of spent packs to certified recyclers.
  • Local Material Recovery: Develop pilot plants in SEZs for mechanical & hydrometallurgical processing.
  • Second‑Life Batteries: Repurpose EV packs for stationary storage, supporting grid stability and renewable integration.

6. Strategic Roadmap & Policy Enablers

7. The Emergence of Local EV Manufacturing

Electric vehicle assembly in Pakistan.

The domestic EV manufacturing sector is gaining momentum:

Licenses Granted: The government has issued licenses to 57 EV manufacturers, introducing tax exemptions and reducing charging tariffs to stimulate growth.

Entry of BYD: The Chinese EV giant BYD is set to establish a plant in Karachi by 2026 and will scale that plant to produce 100,000 electric vehicles annually by 2030.

8. Investment Outlook and Public Private Partnerships

In view of the emerging collaboration between public agencies and private firms for EV station promotion.

Realize aggressive EV objectives that involve Pakistan in the pursuit of:

• Joint ventures between local manufacturers and foreign EV technology leaders (e.g., MG Motors, BYD, JAC Motors).
• SEZs for EV Ecosystem: SEZs set up for EV start-ups and battery recycling units with customs and tax exemptions.
• Mobilization of international financing under the Green Climate Fund (GCF) and climate tech bonds is needed for green financing and climate funds.

9. Roadmap from now to 2030:

The Way Forward Based on trends now unfolding and findings from the second article, here is a three-phased rollout proposal for EV infrastructure development:

Phase 1 (2024-2025): Foundational – Pilot launch of fast-charge corridors in the Lahore-Islamabad-Karachi triangle. – Roof-top solar and EV charger pilot projects in public institutions. – Modify the Building Code of the ECBC for EV-readiness in all buildings.

Phase 2: Expansion (2026-2028) Roll out 1000 additional chargers on urban territories and highways. Activate 3 battery recycling hubs and localized cell testing labs. Extend V2G pilot programs with DISCOs Supporting.

Phase 3: Maturity (Readings on EV adoption)- 2030: 100% digital metering for the EV grid integration; 30% conversion of two- and three-wheelers to electric; launch of a national EV monitoring and sustainability dashboard.

Conclusion

Pakistan is now on the verge of a transportation revolution. As it addresses the challenges of energy and emissions in this country, a focused effort into infrastructure expansion, renewable energy integration, as well as smart grid transformation will serve to clear some of the roadblocks in that vision. This vision’s success will depend not just on policies and technologies but on cohesive partnerships, public participation, and future-ready investments. This infrastructure development is not simply putting up chargers; rather, it is about charging the country to energy independence and environmental resilience.

References

1. NEECA Energy Code 2024 – neeca.gov.pk
2. NEPRA EV Tariff Update 2025 – profit.pakistantoday.com.pk
3. TEC Spectrum EV Infrastructure Report – tecspectrum.com
4. World Bank Renewable Integration Report 2024
5. Ministry of Industries, Pakistan – EV Manufacturing Licenses
6. BYD Pakistan Joint Venture News – dunyanews.tv

This exclusive article has been written by @Hamid Tariq and published in Automark’s May-2025 printed/digital edition.

In the April 2025 Automark edition, we explored the foundational framework of our Automotive localization efforts, emphasizing the need for a well-defined strategy, policy alignment, and active industry participation. While those fundamentals are critical to initiate progress, this follow-up delves deeper into the systemic gaps that hinder sustainable localization. From material sourcing to digital manufacturing, and from testing infrastructure to EV preparedness, the true challenge lies not just in local assembly but in building a resilient and future-proof ecosystem. While the initial emphasis on policy and participation provides the necessary impetus, the true challenge lies not merely in the act of local assembly, but in cultivating a deeply integrated and self-sustaining industry. This requires a critical examination and strategic remediation of weaknesses across the entire value chain, from the very raw materials that enter the manufacturing process to the advanced digital technologies shaping modern production.

The Bigger Picture: Why Localization Matters More Than Ever. Localization for our auto industry isn’t merely putting cars together, it is about developing an independent industrial base that can sustain anything from raw material treatment to high-technology component manufacturing. For us, it translates into cutting back on import dependence, generating jobs, stabilizing car prices, and saving foreign exchange reserves, but genuine localization can’t be done in a vacuum. It needs to be an all-country effort across various industries, stable government policies, access to advanced technology, and most importantly, a well-organized, scalable supply chain.

The Key Barriers to Achieving Full Localization: Despite the obvious advantages, we encounter major obstacles to complete localization. Some of the main challenges include:

1. Low Production Volumes: Mass production is needed for a successful localization process. Without economies of scale, producers cannot make local sourcing profitable. Local suppliers might not be interested in producing components unless there is a guaranteed, high-volume demand. As such, producers are compelled to use costly imports, maintaining costs high.

2. Technology and Expertise Deficit An increasingly changing world automotive industry has introduced new technologies such as electric vehicles (EVs), hybrid cars, and autonomous driving technologies to the scene. Yet, our industry is not developed enough to manufacture high-tech components such as lithium-ion batteries, power electronics, or advanced safety systems. Domestic firms do not have the proper infrastructure and know-how to ensure the standards necessary for such high-tech components.

3. Lack of National Testing and Certification Infrastructure. For local components to be acceptable to the market, they have to be stringently tested and certified. We do not have full-fledged National Automotive Testing and Certification Centers (NATCCs), which compels the producers to get international certification for locally manufactured components. Not only is this costly, but it also slows down the process of localization. In the absence of in-house testing facilities, we are still at a disadvantage.

4. Frequent Policy Changes frequent changes in government responsibilities, taxes, and tariffs discourage long-term planning in our auto industry. The uncertainty and lack of clarity in auto policies discourage manufacturers from investing in localization efforts. A more stable and investor-friendly policy environment is important to ensure steady growth in local manufacturing.

5. The Bottleneck of Material Sourcing. One of the most significant systemic gaps hindering deep localization is the fragile and often underdeveloped local material sourcing infrastructure. While assembly operations may bring some immediate local economic activity, true value addition and cost competitiveness are contingent on the ability to source high-quality raw materials and components domestically. This necessitates. Pakistan needs strategic investment in foundational industries like steel, plastics, and rubber production, ensuring they meet the stringent quality and volume requirements of the automotive sector. Encouraging and supporting the growth of local component manufacturers capable of meeting OEM standards is crucial. This requires technology transfer, access to financing, and mentorship programs.

Regional Success Stories:

Learning from Vietnam and Thailand: We are not the first developing nation to face these hurdles. Other Asian economies have made remarkable progress by addressing similar issues strategically. Thailand: Southeast Asia’s Automotive Powerhouse Thailand’s success story is the result of long-term planning and deliberate policy direction.  Key initiatives taken by the Government and industry to strengthen. 

• Local Supplier Development Programs: The government worked with foreign OEMs to train and develop local Tier-2 and Tier-3 suppliers. 

• Stable Auto Policy (BOI): Incentives through Thailand’s Board of Investment (BOI) attracted big players like Toyota, Honda, and Mitsubishi.

• Testing and R&D Infrastructure: Thailand established well-equipped testing centers, enabling local components to meet global standards.

• Eco-car Program: This initiative not only promoted fuel-efficient vehicles but also ensured that local suppliers became part of global supply chains.

Vietnam: Rapid Transition to Electric Vehicle Localization Vietnam’s strategy, particularly through VinFast, has rapidly moved from CKD assembly to full-scale EV manufacturing.

• Technology Transfer Agreements: VinFast partnered with international firms to absorb technology and kick-start local production. 

• State Support for Localization: Incentives and tax exemptions were given to companies localizing EV batteries, motors, and software.  • EV Ecosystem Investment: Parallel investment was made in charging stations, local battery plants, and even AI-based EV architecture.

The core takeaway for Pakistan’s automotive localization efforts is clear: true and lasting success transcends simply attracting foreign players to set up assembly plants. While foreign direct investment (FDI) is a crucial catalyst, it must be strategically leveraged to foster genuine indigenous capabilities. The path to a resilient and thriving local automotive ecosystem lies in actively pursuing joint development programs, rigorously ensuring technology sharing, and fundamentally empowering our local vendors. Pakistan’s automotive localization strategy must evolve beyond simply attracting foreign assembly.

True success lies in a proactive and strategic approach that prioritizes joint development programs to build indigenous R&D, ensures genuine technology sharing to upskill the workforce and industry, and fundamentally empowers local vendors to become capable and competitive suppliers. This holistic approach will pave the way for a resilient, innovative, and truly localized automotive ecosystem that benefits the national economy and empowers local talent.

How We Can Accelerate Localization: To replicate this success, we need to take a multi-dimensional approach to breach these barriers and unleash the potential of our auto industry. Localization is not a Band-Aid solution; it’s a long-term game that needs to involve the full engagement of all the stakeholders: government, producers, suppliers, and consumers.

We can become a leader in the automotive sector, but only if we work on filling up the structural deficiencies and investing in our local competencies. The future is challenging, but with sound policies, collaboration, and investment, we can create a successful, localized auto industry. Picture a world where most of our cars are made locally, which makes them more accessible to consumers and makes us more competitive in the global auto industry.

The journey to this vision starts today, with our shared commitment to localization.

• Creating a Structured Supply Chain Localization initiative cannot be accomplished without a structured and strong supply chain. All levels of the supply chain, from raw materials sourcing to finished parts, must be aligned and prepared to serve local production. Suppliers’ active involvement at all levels will be essential to guarantee the timely delivery of quality parts at competitive prices.

• Collaboration with Foreign Automakers:  Collaboration with international automakers would help speed up the localization process immensely. Such collaborations should be aimed at technology transfer, component development, and prototyping. With the use of the experience of renowned global players, we can improve our manufacturing ability in no time and conform to international standards.

• Material Localization: Focus on material localization is a critical aspect that is usually neglected. To minimize costs, local steel, aluminum, and plastic component production will be vital. But without upstream industries specializing in these materials, component localization will never be achieved. Setting up facilities for the manufacturing of high-quality materials such as steel and aluminum will make local component production sustainable and affordable.

Capacity Building for EV Components: While this article focuses on conventional vehicles, it’s key to consider the future of electric vehicles (EVs). We need to start localizing EV components such as batteries, power electronics, and charging technology. With growing demand for EVs across the globe, there will be a greater demand for local EV components. This is a strategic chance to establish Pakistan as a regional center for EV component manufacturing.  

• Adoption of AI and Digital Manufacturing:  In order to stay competitive in the global auto industry, we need to adopt automation, artificial intelligence (AI), and digital manufacturing technologies. These technologies will enable our manufacturers to produce parts with improved accuracy, consistency, and scalability, maintaining high standards of quality commensurate with international standards.

• Government Incentives and Policy Stability: A stable, long-term policy framework will be required to generate confidence in the minds of investors and producers. Clear, consistent tax, tariff, and duty policies will promote long-term investment in domestic production. Also, providing tax incentives, subsidies, and low-interest loans to manufacturers and suppliers will render local sourcing a more desirable option.

Takeaway from this article:

Localization is not an endpoint; it is a constantly changing process. We need to see it not only as a money-saver, but as a method of developing a globally competitive automotive industry. While the initial steps towards automotive localization in Pakistan, as discussed in the April 2025 Automark edition, are commendable, achieving sustainable and impactful localization requires a deeper and more systemic approach.

Addressing the gaps in material sourcing, embracing digital manufacturing, establishing a robust testing infrastructure, and proactively preparing for the EV revolution are not merely incremental improvements; they are fundamental prerequisites for building a resilient, competitive, and future-proof automotive ecosystem in Pakistan. The true measure of success will lie not just in the number of vehicles assembled locally, but in the depth and strength of the entire domestic value chain.

The experiences of Vietnam and Thailand give unequivocal blueprints. But the true secret lies in our capacity to act consistently, coordinated, and with vision. By investing in material industries, enabling our local suppliers, and adopting future tech, we can finally graduate out of the CKD cycle and take control of our automotive fate.

This exclusive article has been written by @muhammad-rafique, and published in Automark’s May-2025 printed/digital edition.

Electric bikes and scooters are no longer futuristic concepts or niche vehicles they are now a growing reality on Pakistan’s roads. As rising fuel costs push consumers to seek cost-effective alternatives, electric two-wheelers (E2Ws) have emerged as a practical, eco-friendly, and increasingly popular mode of transportation.

According to data from the Engineering Development Board (EDB), the production of electric two-wheelers in Pakistan has surged by over 200% in the last four years. In the fiscal year 2021–2022, production stood at 7,377 units, which soared to 22,404 units by 2024–2025 (July to March). This growth reflects a broader transformation in the way Pakistanis, particularly urban commuters, are approaching mobility.

Women Driving the Change

One of the most notable trends in this electric revolution is the increasing adoption of electric scooters by women, especially in urban centers such as Islamabad and Punjab’s metropolitan areas. As per the Excise and Taxation Department, between May 2023 and May 2024, 780 electric bikes were registered under women’s names in Islamabad alone, a small but symbolically significant number, considering the broader cultural shift it indicates.

For many women, electric scooters offer a blend of convenience, cost-effectiveness, and independence. The ability to charge the vehicle at home, coupled with a range of up to 100 kilometers per charge, makes them ideal for daily commuting needs, often lasting two to three days without requiring a recharge.

Economic Viability and Savings

Electric bikes provide significant operational savings compared to fuel-powered motorcycles. While a conventional petrol bike costs approximately Rs5 per kilometer (Estimated), electric bikes factoring in peak electricity rates operate at Rs2 to Rs2.5 per kilometer (Incase of solar cost will be much lower). This translates to a 50–60% reduction in running costs, offering much-needed relief to consumers burdened by inflation and rising fuel prices.

Additionally, electric bikes are low-maintenance machines. With no need for oil changes, spark plug replacements, or regular engine tuning, users save considerably over the life of the vehicle. These long-term cost benefits are playing a crucial role in accelerating adoption, particularly among budget-conscious riders.

Industry Momentum and Policy Support

The EDB has so far issued manufacturing licenses to 34 companies for electric two and three-wheelers. This initiative is a part of Pakistan’s Electric Vehicle Policy 2020–2025, which aims to have 50% of all new two and three-wheeler sales be electric by 2030.

Major players in the auto industry are responding to this momentum by launching locally assembled electric scooters and bikes. New startups and established manufacturers alike are contributing to a more diverse product range, improved designs, and better localization of components.

Lahore Leading the Charge

While adoption is growing nationwide, Lahore has emerged as the biggest EV two-wheeler market in Pakistan. This trend is largely driven by the city’s growing middle class, high fuel costs, and increasing awareness of environmental sustainability. What sets Lahore apart is the widespread use of solar energy to charge electric scooters, especially among households and small businesses that have installed rooftop solar panels.

This solar-backed charging model not only reduces electricity costs but also minimizes the carbon footprint associated with EV usage, delivering strong environmental outcomes. It’s a perfect example of how renewable energy and electric mobility can complement each other in creating a greener future for urban transport.

Challenges Ahead

Despite the promise, challenges remain. One of the biggest concerns for users is the battery lifecycle. Most lithium-ion batteries require replacement every 3 to 5 years, which can be a significant investment. However, this cost is largely offset by the money saved on fuel, oil changes, and air filters over that time.

Moreover, while the initial cost of parts and components is higher due to reliance on imported technology, it is expected to decrease as the market grows and local manufacturing gains traction.

Another issue is the lack of a widespread charging infrastructure, especially in smaller towns and remote areas. Though the current user base relies largely on home charging, scaling up the network of public charging points will be crucial for mass adoption.

The Road Forward

The electric two-wheeler segment in Pakistan is not just a passing trend—it’s a structural shift in how people commute, particularly in urban areas. From students and working women to delivery riders and small business owners, the appeal of electric bikes spans across multiple demographics.

With continued policy support, infrastructure development, and market-driven cost reductions, the electric mobility ecosystem in Pakistan is on a strong growth trajectory. If current trends hold, we may soon see electric two-wheelers dominating our roads—not just as an environmentally friendly choice, but as the most economical and practical one.

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Syed Rehan Ashraf is an Industrial Engineer and mobility technology enthusiast, currently working at the University of Management and Technology. He actively writes about sustainable transportation, electric vehicles, and emerging trends in Pakistan’s auto sector.

This exclusive article has been published in Automark’s May-2025 printed/digital edition.

The Bigger Picture: Why Localization Matters More Than Ever. Localization for our auto industry isn’t merely putting cars together, it is about developing an independent industrial base that can sustain anything from raw material treatment to high-technology component manufacturing. For us, it translates into cutting back on import dependence, generating jobs, stabilizing car prices, and saving foreign exchange reserves, but genuine localization can’t be done in a vacuum. It needs to be an all-country effort across various industries, stable government policies, access to advanced technology, and most importantly, a well-organized, scalable supply chain.

The Key Barriers to Achieving Full Localization: Despite the obvious advantages, we encounter major obstacles to complete localization. Some of the main challenges include:

1. Low Production Volumes: Mass production is needed for a successful localization process. Without economies of scale, producers cannot make local sourcing profitable. Local suppliers might not be interested in producing components unless there is a guaranteed, high-volume demand. As such, producers are compelled to use costly imports, maintaining costs high.

2. Technology and Expertise Deficit: An increasingly changing world automotive industry has introduced new technologies such as electric vehicles (EVs), hybrid cars, and autonomous driving technologies to the scene. Yet, our industry is not developed enough to manufacture high-tech components such as lithium-ion batteries, power electronics, or advanced safety systems. Domestic firms do not have the proper infrastructure and know-how to ensure the standards necessary for such high-tech components.

3. Lack of National Testing and Certification Infrastructure: For local components to be acceptable to the market, they have to be stringently tested and certified. We do not have full-fledged National Automotive Testing and Certification Centers (NATCCs), which compels the producers to get international certification for locally manufactured components. Not only is this costly, but it also slows down the process of localization. In the absence of in-house testing facilities, we are still at a disadvantage.

4. Frequent Policy Changes frequent changes in government responsibilities, taxes, and tariffs discourage long-term planning in our auto industry. The uncertainty and lack of clarity in auto policies discourage manufacturers from investing in localization efforts. A more stable and investor-friendly policy environment is important to ensure steady growth in local manufacturing.

5. The Bottleneck of Material Sourcing: One of the most significant systemic gaps hindering deep localization is the fragile and often underdeveloped local material sourcing infrastructure. While assembly operations may bring some immediate local economic activity, true value addition and cost competitiveness are contingent on the ability to source high-quality raw materials and components domestically. This necessitates. Pakistan needs strategic investment in foundational industries like steel, plastics, and rubber production, ensuring they meet the stringent quality and volume requirements of the automotive sector. Encouraging and supporting the growth of local component manufacturers capable of meeting OEM standards is crucial. This requires technology transfer, access to financing, and mentorship programs.

Regional Success Stories: Learning from Vietnam and Thailand: We are not the first developing nation to face these hurdles. Other Asian economies have made remarkable progress by addressing similar issues strategically.

Thailand: Southeast Asia’s Automotive Powerhouse Thailand’s success story is the result of long-term planning and deliberate policy direction.  Key initiatives taken by the Government and industry to strengthen.

• Local Supplier Development Programs: The government worked with foreign OEMs to train and develop local Tier-2 and Tier-3 suppliers. 

• Stable Auto Policy (BOI): Incentives through Thailand’s Board of Investment (BOI) attracted big players like Toyota, Honda, and Mitsubishi.

• Testing and R&D Infrastructure: Thailand established well-equipped testing centers, enabling local components to meet global standards.

• Eco-car Program: This initiative not only promoted fuel-efficient vehicles but also ensured that local suppliers became part of global supply chains.

Vietnam: Rapid Transition to Electric Vehicle Localization Vietnam’s strategy, particularly through VinFast, has rapidly moved from CKD assembly to full-scale EV manufacturing.

• Technology Transfer Agreements: VinFast partnered with international firms to absorb technology and kick-start local production. 

• State Support for Localization: Incentives and tax exemptions were given to companies localizing EV batteries, motors, and software. 

• EV Ecosystem Investment: Parallel investment was made in charging stations, local battery plants, and even AI-based EV architecture.

The core takeaway for Pakistan’s automotive localization efforts is clear: true and lasting success transcends simply attracting foreign players to set up assembly plants. While foreign direct investment (FDI) is a crucial catalyst, it must be strategically leveraged to foster genuine indigenous capabilities. The path to a resilient and thriving local automotive ecosystem lies in actively pursuing joint development programs, rigorously ensuring technology sharing, and fundamentally empowering our local vendors.

Pakistan’s automotive localization strategy must evolve beyond simply attracting foreign assembly. True success lies in a proactive and strategic approach that prioritizes joint development programs to build indigenous R&D, ensures genuine technology sharing to upskill the workforce and industry, and fundamentally empowers local vendors to become capable and competitive suppliers. This holistic approach will pave the way for a resilient, innovative, and truly localized automotive ecosystem that benefits the national economy and empowers local talent.

How We Can Accelerate Localization: To replicate this success, we need to take a multi-dimensional approach to breach these barriers and unleash the potential of our auto industry. Localization is not a Band-Aid solution; it’s a long-term game that needs to involve the full engagement of all the stakeholders: government, producers, suppliers, and consumers. We can become a leader in the automotive sector, but only if we work on filling up the structural deficiencies and investing in our local competencies. The future is challenging, but with sound policies, collaboration, and investment, we can create a successful, localized auto industry. Picture a world where most of our cars are made locally, which makes them more accessible to consumers and makes us more competitive in the global auto industry. The journey to this vision starts today, with our shared commitment to localization.

• Creating a Structured Supply Chain Localization initiative cannot be accomplished without a structured and strong supply chain. All levels of the supply chain, from raw materials sourcing to finished parts, must be aligned and prepared to serve local production. Suppliers’ active involvement at all levels will be essential to guarantee the timely delivery of quality parts at competitive prices.

• Collaboration with Foreign Automakers:  Collaboration with international automakers would help speed up the localization process immensely. Such collaborations should be aimed at technology transfer, component development, and prototyping. With the use of the experience of renowned global players, we can improve our manufacturing ability in no time and conform to international standards.

• Material Localization: Focus on material localization is a critical aspect that is usually neglected. To minimize costs, local steel, aluminum, and plastic component production will be vital. But without upstream industries specializing in these materials, component localization will never be achieved. Setting up facilities for the manufacturing of high-quality materials such as steel and aluminum will make local component production sustainable and affordable.

Capacity Building for EV Components: While this article focuses on conventional vehicles, it’s key to consider the future of electric vehicles (EVs). We need to start localizing EV components such as batteries, power electronics, and charging technology. With growing demand for EVs across the globe, there will be a greater demand for local EV components. This is a strategic chance to establish Pakistan as a regional center for EV component manufacturing.  

• Adoption of AI and Digital Manufacturing:  In order to stay competitive in the global auto industry, we need to adopt automation, artificial intelligence (AI), and digital manufacturing technologies. These technologies will enable our manufacturers to produce parts with improved accuracy, consistency, and scalability, maintaining high standards of quality commensurate with international standards.

• Government Incentives and Policy Stability: A stable, long-term policy framework will be required to generate confidence in the minds of investors and producers. Clear, consistent tax, tariff, and duty policies will promote long-term investment in domestic production. Also, providing tax incentives, subsidies, and low-interest loans to manufacturers and suppliers will render local sourcing a more desirable option.

Takeaway from this article:

Localization is not an endpoint, it is a constantly changing process. We need to see it not only as a money-saver, but as a method of developing a globally competitive automotive industry. While the initial steps towards automotive localization in Pakistan, as discussed in the April 2025 Automark edition, are commendable, achieving sustainable and impactful localization requires a deeper and more systemic approach.

Addressing the gaps in material sourcing, embracing digital manufacturing, establishing a robust testing infrastructure, and proactively preparing for the EV revolution are not merely incremental improvements; they are fundamental prerequisites for building a resilient, competitive, and future-proof automotive ecosystem in Pakistan. The true measure of success will lie not just in the number of vehicles assembled locally, but in the depth and strength of the entire domestic value chain.

The experiences of Vietnam and Thailand give unequivocal blueprints. But the true secret lies in our capacity to act consistently, coordinated, and with vision. By investing in material industries, enabling our local suppliers, and adopting future tech, we can finally graduate out of the CKD cycle and take control of our automotive fate.

This exclusive article has been written by @muhammad-rafique and published in Automark’s May-2025 printed/digital edition.

As the world hurtles toward a future defined by clean energy, electric vehicles, artificial intelligence, and advanced defense technologies, the raw ingredients fueling this transformation are not just data and devices—they are minerals, water, food, and people. The future belongs to those who can master the sustainable management of these finite resources.

In the unfolding saga of 21st-century global power dynamics, ‘’REM’’ rare earth minerals have quietly taken center stage. These 17 elusive elements—hidden in the Earth’s crust—are driving the Fourth Industrial Revolution. They form the backbone of cutting-edge technologies such as electric vehicles, wind turbines, solar panels, defense equipment, and smartphones. Yet, behind their scientific obscurity lies a geopolitical chess game with profound consequences.

The Strategic Value of Rare Earth Minerals (REM)

Rare earth minerals (REMs) like neodymium, lanthanum, cerium, and dysprosium are not as scarce as the name suggests. But their mining, refining, and processing require highly sophisticated infrastructure and technical expertise. The world’s heavy reliance on REMs in renewable energy, electronics, and national defense systems has elevated them to a position of critical strategic importance.

The Mineral Awakening – Powering Tomorrow’s Technologies

Rare earth minerals such as lithium, cobalt, nickel, graphite, and neodymium are the new global power currency. These strategic materials are indispensable for EV batteries, semiconductors, 5G networks, military hardware, renewable energy systems, and satellite communications.

According to the International Energy Agency, global demand for rare earth and critical minerals could rise by 400–600% by 2040. Countries such as the United States, China, Australia, and the Democratic Republic of Congo are aggressively securing these resources through investment, mining, and trade control.

China’s Global Monopoly: 90% Market Control

Over the past two decades, China has carefully orchestrated its rise to dominate the global REM value chain. Currently, it controls nearly 90% of the global supply—from raw mining to high-purity processing. It is also heavily investing in education, with 39 universities running dedicated REM programs to ensure a sustainable and skilled talent pipeline.

In an unprecedented geopolitical maneuver, China banned the export of 12 key rare earth elements to the United States as a retaliatory response to Trump-era tariffs. This marked the first instance of any country using REM sanctions as a strategic weapon against the U.S.—a country that heavily relies on these minerals for its defense systems, semiconductor production, and high-tech industries.

The Silent War: Technology, Resources, and Sanctions

This confrontation has ignited a silent but strategic war—a battle not of arms, but of access. Western nations, alarmed by their dependence on China, are scrambling to secure alternative REM supply chains. Australia, Canada, and even some African nations are rapidly mobilizing exploration and processing efforts.

The U.S. Defense Department, for instance, has started funding local rare earth projects. The European Union is also prioritizing critical mineral strategies under its Green Deal Industrial Plan. The stakes are high. Whoever controls REMs controls innovation—and in turn, global influence.

Pakistan’s Untapped Treasure and Strategic Shift

Pakistan is sitting on immense untapped mineral wealth—especially in regions like Balochistan, home to one of the world’s largest undeveloped copper-gold mines: Reko Diq. In early 2025, Pakistan hosted the Minerals and Metals Investment Conference, signaling its serious intention to develop the mining sector.

At the conference, the government, supported by the military and private sector stakeholders, laid out the National Minerals Investment Policy 2025 and the National Mineral Harmonisation Framework. These initiatives aim to:

– Streamline licensing and ease investor entry
– Emphasize sustainable, water-efficient mining
– Ensure community benefit sharing
– Foster domestic refining and value-added exports
– Create green mining corridors and human capital development hubs

Pakistan is clear in its vision: it does not want to become a raw material exporter, but a value-added player in the global rare earth supply chain.

The Water Crisis – The Silent Emergency

While minerals are being unearthed, Pakistan is simultaneously sinking into a water emergency. With per capita water availability below 900 cubic meters, Pakistan is now one of the top ten most water-stressed nations. Climate change, glacier melt, groundwater depletion, urbanization, and poor water management are worsening the crisis.

Regions rich in minerals, such as Balochistan, are also the most water-deficient. The expansion of mining must therefore come with cutting-edge water conservation measures such as:

– Solar-powered desalination
– Tailings recycling and wastewater reuse
– Integrated Water Resource Management (IWRM)

Food Security – A Ticking Time Bomb

Over 90% of Pakistan’s water is used for agriculture. Yet, outdated irrigation techniques, monoculture practices, and climate disruptions are leading to falling yields and rising food insecurity. With 38% of the labor force dependent on agriculture, this presents both a social and economic threat.

There is a pressing need to modernize agriculture through:

– Climate-smart precision farming
– Crop rotation and drought-resistant seeds
– Drip irrigation and agro-solar integration
– Linking mining revenues to rural farming reform

Population Pressure – The Overlooked Dimension

While rare earth minerals, food, and water dominate the strategic discourse, one of the most critical—and often underestimated—challenges facing Pakistan is its explosive population growth. With a population surpassing 240 million, Pakistan ranks among the most populous countries in the world. This demographic explosion is a double-edged sword: it offers a vast labor force and potential market, but it also threatens to overwhelm the country’s limited resources and infrastructure.

The race for clean water, nutritious food, education, healthcare, and economic opportunities is intensifying. Pakistan’s per capita availability of natural resources—including land, water, and energy—is shrinking fast. Without targeted investments in human development, mass education, resource management, and skills enhancement, even the most abundant mineral reserves will become a liability rather than an asset.

The demographic challenge isn’t isolated—it compounds Pakistan’s already daunting internal vulnerabilities:

• A population growing at over 2% annually, adding millions of mouths to feed every year.
• Rapid urbanization, creating unplanned megacities that strain water, sanitation, housing, and transport systems.
• A youth bulge, with over 60% of the population under the age of 30, largely undereducated, underemployed, and underprepared for the demands of a modern economy.
• Worsening food and water insecurity, aggravated by climate change, outdated agricultural practices, and inefficient water use.
• Political and governance instability, creating investor uncertainty and slowing the pace of reform.

If Pakistan does not address the population challenge in parallel with mineral and environmental strategies, it risks falling into a resource curse—a paradox where natural wealth leads not to prosperity, but to conflict, inequality, and ecological collapse.

What Needs to Be Done?

If Pakistan is to benefit from the global REM revolution, immediate and aggressive action is required:

1. Launch a National REM Task Force to map, regulate, and develop this sector.
2. Introduce dedicated rare earth engineering and geology programs in universities.
3. Partner with friendly nations like Germany, Japan, or Turkey for tech transfer and joint ventures.
4. Digitize mineral data for transparency and protection from resource theft.
5. Establish a mining sustainability framework to ensure environmental and community protection.

The Way Forward – A National Resilience Strategy

Rather than treating minerals, water, food, and population separately, Pakistan must integrate them into a single national development strategy. A few cornerstones of this strategy should include:

– Strategic Resilience Funds: Invest mineral profits in food and water systems
– Triple Nexus Governance: Link mining, agriculture, and water authorities under one framework
– Skill Development: Train youth in mining engineering, hydrology, agro-tech, and environmental science
– Geopolitical Readiness: Build alliances with rare earth-consuming countries and diversify trade routes

From Crisis to Catalyst – The Century of Resilience

Pakistan’s rare earth revolution must not be seen as a stand-alone mineral surge—it must be embedded within a broader human development and national resilience agenda. The true value of mining lies not just beneath the earth but in what we build above it.

Mining revenues must be reinvested into:

• Education systems that foster scientific thinking and technical skills
• Healthcare and nutrition to support a productive, healthy population
• Vocational training to equip the youth for roles in green industries
• Digital literacy to prepare citizens for an increasingly data-driven economy

Only through inclusive growth, equitable resource distribution, and community participation can Pakistan transform its demographic pressure into demographic power. The resource-rich future must belong to all Pakistanis—not just a few.

The countries that will lead in the 21st century are not merely those endowed with rare minerals, but those that govern them wisely, process them cleanly, and share them justly. The global rare earth race is not just about extraction—it’s a test of sustainability, innovation, and leadership.

For Pakistan, the intersection of mineral opportunity, water scarcity, food insecurity, and a surging population is not a ticking time bomb—it is a once-in-a-century opportunity to reimagine its national destiny. Through smart policy, international partnerships, and local empowerment, Pakistan can turn this convergence of crises into a platform for renewal.

Let this be the century of minerals, but more importantly, let it be the century of balance, foresight, and resilience.

Because Pakistan does not just need a mineral revolution.

It needs a national transformation.

This exclusive article has been written by @asif-mehmood and published in Automark’s May-2025 printed/digital edition.

1. IMF’s Standard Approach vs. Pakistan’s Economic Reality

The IMF advocates for tariff reductions to promote a free-market economy, arguing that high tariffs protect inefficiencies and prevent competition. However, in a developing economy like Pakistan, prematurely removing tariffs without a comprehensive industrial growth strategy would lead to deindustrialization, rising imports, and a deteriorating trade deficit. Even developed countries like USA, Canada and others increasing the tariff to safe guard the manufacturing industries in their countries.

2. The Fallacy of Immediate Liberalization

The IMF assumes that reducing tariffs will automatically improve efficiency and attract Foreign Direct Investment (FDI). However, Pakistan lacks the investment environment of Vietnam, India, or Thailand. Without strengthening local production and export capabilities, tariff reductions alone will not attract investors or enhance industrial competitiveness.

3. Pakistan’s Vision: Becoming an Export-Oriented Automotive Hub

Pakistan must develop a long-term strategy to position itself as a global hub for small fuel-based and small electric vehicles or Hi-Tech Industries. Government incentives should be linked to export commitments, ensuring the industry’s sustainability and contribution to foreign exchange earnings.

Global Success Stories and Lessons for Pakistan

Thailand: The “Detroit of the East”

Thailand has established itself as a leading global automotive production and export hub through strategic government policies promoting localization, foreign investment, and export-oriented growth.

Key Strategies:

• Product Champion Approach: Targeted incentives for 1-ton pickup trucks and eco-cars.
• Infrastructure Development: Investment in the Eastern Seaboard Economic Corridor for state-of-the-art logistics and export capabilities.
• Result: Thailand became the world’s 10th largest automotive producer, with exports comprising over 35% of locally assembled vehicles.

Taiwan: From Import Substitution to Export Powerhouse

Taiwan transitioned from import substitution in the 1950s to an export-driven economy by the 1980s, fostering strategic alliances and investing in innovation.

Key Strategies:

• Export Promotion: Currency devaluation and policy incentives to boost competitiveness.
• Strategic Alliances: Partnerships with foreign manufacturers to enhance domestic production.
• High-Tech Integration: Heavy investment in automotive electronics and innovation.
• Result: By 2016, Taiwan’s automotive industry reached a $20 billion output, making it a key player in vehicle electronics and components exports.
• Export-driven policies helped Taiwan achieve $479 billion in merchandise exports in 2022.

Indonesia: Regional Automotive Export Hub

Indonesia has strategically developed its automotive sector by focusing on local production and global market penetration.

Key Strategies:

• Electric Vehicle (EV) Incentives: Reduced taxes for hybrid and electric vehicles to boost adoption and local manufacturing.
• Export Growth Initiatives: Vehicle exports surpassed 505,000 units in 2023, with projections exceeding 1 million units in future.
• Investment in Nickel Processing: Strengthened EV battery production, positioning Indonesia as a supplier for global EV giants like Tesla.
• Result: Indonesia has attracted major EV manufacturers and strengthened its global automotive footprint.

Vietnam: Strategic Integration into Global Markets

Vietnam has positioned itself as a rising automotive force through strategic policies and free trade agreements (FTAs).

Key Strategies:

• Automobile Industry Development Strategy: A roadmap to enhance domestic production and export capabilities.
• FTA Participation: Trade agreements with ASEAN and the EU Countries.
• Green Vehicle Initiatives: Incentives for battery-powered and hybrid vehicles align with global sustainability trends.
• Result: Vietnam aims to export 90,000 vehicles worth $10 billion by 2030, leveraging its integration into global supply chains.

Pakistan’s Roadmap to an Export-Driven Automotive Industry

To transform Pakistan into a global automotive hub, the government must adopt a long-term strategic vision centered on export growth:

1. Policy Stability & Consistency:
   • Establish a clear, stable auto policy with a focus on export-led growth.
   • Offer predictable incentives to attract both local and foreign investment.
2. Export Incentives & Localization:
   • Provide tax benefits and subsidies for companies committed to exporting vehicles and auto parts.
   • Encourage localization of key components to reduce reliance on imports.
3. Infrastructure & Logistics Development:
   • Develop dedicated industrial zones for automotive manufacturing.
   • Enhance port facilities and logistics networks to support exports.
4. Strategic Alliances & Investment:
   • Facilitate joint ventures with global automakers to transfer technology and expertise.
   • Promote Pakistan as a cost-competitive destination for manufacturing.
5. Specialization in Small & Electric Vehicles or Hi-Tech Industries:
   • Position Pakistan as a hub for small fuel-based cars and small electric vehicles (EVs) or Hi-Tec Industries.
   • Invest in EV battery production to integrate into global supply chains.

Suggestion: A Strategic Pivot Towards Global Competitiveness

Pakistan’s economic future depends on shifting from an import-dependent model to an export-oriented industrial base. Learning from countries like Thailand, Taiwan, Indonesia, and Vietnam, Pakistan must embrace long-term policies that prioritize industrial growth, technological advancement, and global market integration. By fostering a competitive automotive industry with a strong export focus, Pakistan can enhance foreign reserves, ensure economic stability, and establish itself as a key player in the global automotive sector.

By @mashood-khan, Director – Mehran Commercial Enterprises, Expert Auto Sector / Former Chairman PAAPAM

This exclusive article has been published in Automark’s May-2025 printed/digital edition.

Dear Readers Pakistan, with its strategic location, rising population, and emerging logistics needs, presents a unique opportunity in the commercial vehicle sector. While private automotive markets—especially motorcycles and small cars—have seen rapid expansion, the commercial vehicle industry remains relatively stagnant. A combination of fragmented planning, policy loopholes, and strategic missteps from key local players has left a significant vacuum in this market.

This article explores the current approximate size of Pakistan’s commercial vehicle market, a breakdown of different segments including LCVs, pickups, heavy-duty trucks, vans, MPVs, and luxury buses, and uncovers why the vacuum exists—mainly due to misaligned priorities and underinvestment by major local entities.

1. Market Size and Overview

Pakistan’s commercial vehicle market has not kept pace with the country’s logistics and infrastructure demands. With road freight still accounting for more than 92% of goods transport in Pakistan, the demand for commercial vehicles—especially LCVs and heavy trucks—should ideally be higher than current numbers suggest.

Estimated Annual Sales by Segment (approximate figures based on industry insights and market trends up to 2024):

Segment	Annual Units Sold (2023)	Comments
LCVs (Light Commercial Vehicles) – Pickups (0.5 – 2 tons)	20,000–25,000 units	Dominated by Suzuki Ravi, Toyota Hilux
Medium Pickups / 3-ton Trucks	4,000–6,000 units	Fragmented; some Chinese imports
Heavy-Duty Pickups / 5-ton	3,000–4,000 units	Primarily for industrial use
Heavy Trucks (above 6 tons)	5,000–6,500 units	Increasing demand with CPEC/logistics
Vans / MPVs	12,000–15,000 units	Used for passenger/family + school
Luxury Buses (Intercity + Executive)	1,500–2,500 units	Mostly import-based, high-margin segment

Total Market Size (2023): 50,000 to 60,000 units/year

Despite a sizable freight and passenger demand, these numbers reflect underutilization of potential, especially in freight vehicles and intercity buses.

2. Key Players and Brands

Local OEMs / Assembling Players:

• Ghandhara Industries (Isuzu trucks and buses)
• Master Motors (Foton, Changan, Yutong)
• Hinopak (Hino trucks & buses – facing decline)
• Suzuki Pakistan (Ravi, Bolan – LCV segment)
• Toyota Indus Motors (Hilux – premium pickup)

Import Players (Used/New):

• Chinese brands like Dongfeng, JAC, FAW
• Japanese imports (used buses, MPVs)
• European players in luxury segment (Volvo, Mercedes)

Many of these brands are under-marketed, poorly positioned, or neglected due to a shift in business focus or financial constraints.

3. Segment-Wise Insights

a. LCVs & Small Pickups (0.5 – 2 Ton)

This is the most active segment due to its use in small logistics, agriculture, and urban goods transport. The Suzuki Ravi dominates due to price point, though it’s outdated and lacks features.

Growth Potential: Huge. A modern alternative with better payload, safety, and efficiency could disrupt this space.

b. 3-Ton and 5-Ton Trucks

Historically served by Hino and Isuzu, this segment is now underserved. With industrial logistics growing (e.g., e-commerce, FMCG, pharma), demand for efficient mid-size trucks is increasing.

Challenge: Lack of product innovation, dealer networks, and financing options.

c. Heavy-Duty Trucks (6–30 Ton)

Demand is largely project-driven: CPEC, highways, ports, and fuel tankers. Players like Isuzu and Foton have attempted to serve it, but limited financing and low aftersales coverage slow adoption.

Opportunity: Leasing-backed sales model and fleet programs could unlock growth.

d. Vans / MPVs

Used by schools, tour operators, and families (especially in northern areas), MPVs like Suzuki APV, Toyota Hiace, and Changan Karvaan have steady demand.

Growth Driver: Tourism resurgence, rural mobility needs.

e. Luxury & Intercity Buses

A niche yet highly profitable market. Mostly served by Yutong and Higer (through Master Motors), these buses are used in premium intercity services like Daewoo, Faisal Movers, Road Master, etc.

Missed Potential: No local bus manufacturing plant has captured the premium market fully.

4. The Vacuum: Why the Market Isn’t Thriving

Despite economic and logistical potential, the market lags. The key reasons include:

a. Lack of Strategic Focus by Local Players

Some major players, particularly those with strong history in truck/bus manufacturing (like Hinopak), have failed to innovate or adapt. They have also diverted resources to other segments or haven’t invested in R&D.

b. Shift to Passenger Vehicles

Local assemblers and investors have prioritized passenger cars, MPVs, or SUVs due to:

• Easier financing
• Consumer-driven demand
• Higher margins per unit
• Lower regulatory complexity

This has left the commercial sector in a state of under-service.

c. Poor Government Policy / High Duties

• High import duties on CKD and CBU units
• Lack of tax benefits for fleet modernization
• No scrappage policy for old commercial vehicles

These discourage investment in new commercial vehicle lines.

d. Financing Bottlenecks

• Most commercial vehicles are bought cash-down
• Financing options are rare outside Tier-1 cities
• No government-backed fleet-leasing programs

This reduces sales penetration, especially in heavy segments.

5. Benefits of Filling the Vacuum

If stakeholders take action, the payoff could be significant:

a. Economic Multiplier Effect

More commercial vehicles = faster goods movement = better supply chains. This fuels growth in:

• Agriculture
• Retail/FMCG
• Manufacturing
• E-commerce logistics

b. Employment Generation

Every new truck/bus supports 2–3 direct jobs (drivers, mechanics) and dozens indirectly (logistics companies, suppliers).

c. Export Opportunity

With right scale and focus, Pakistan could export commercial vehicles to:

• Afghanistan
• Central Asia
• East Africa
• Smaller Gulf states

d. Environmental Modernization

Upgrading to Euro-IV/V compliant fleets can drastically reduce emissions. Government support can make Pakistan a green transport leader in South Asia.

6. What Needs to Change?

To unlock the potential, key reforms and actions are needed:

Stakeholder	Required Action
Local OEMs	Invest in R&D, launch modern commercial models, create fleet-leasing programs
Government	Reduce duties, incentivize local assembly, offer commercial vehicle financing schemes
Banks & NBFCs	Launch tailored CV loan products, especially for SMEs and logistics startups
Investors	Reassess commercial sector profitability vs saturated car markets
International Partners	Encourage CKD partnerships with Chinese and Japanese commercial brands

The commercial vehicle sector in Pakistan stands at a critical juncture. While demand for logistics and mobility continues to rise, the supply side—especially for trucks, LCVs, and buses—remains underdeveloped due to poor planning, diverted corporate focus, and policy neglect.

This vacuum is not just a gap—it’s an opportunity waiting to be seized by forward-looking automakers, logistics firms, and policymakers. With the right alignment of vision and investment, Pakistan could transform its transport landscape and unlock billions in economic value.

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

Mr. Ajlan bin Saad Al-Ajlan has officially opened the seventh edition of Automechanika Riyadh

Key topics to be discussed during the three-day sold-out event include tackling skills shortages and embracing digital change, establishing the Middle East as a global automotive hub, and the importance of a customer-centric approach

The event will welcome a record number of exhibitors, with more than 450 from over 30 countries with over 19,000 visitors expected

Riyadh, KSA: Automechanika Riyadh, Saudi Arabia’s leading regional trade show for the automotive aftermarket industry, has been officially inaugurated by Mr. Ajlan Saad Al-Ajlan, Vice Chairman of Board of Directors, Riyadh Chamber, with the event continuing until Wednesday, 30 April, at the Riyadh International Convention and Exhibition Centre (RICEC).

As part of the official opening ceremony and tour, by Mr. Ajlan Saad Al-Ajlan visited several of the 450 exhibitors, including Neweast, Al-Kadi Commerce & Industry LLC, Hexis Middle East, DJ Auto Parts Co. Ltd, and RedLine Car Services.  Automechanika Riyadh saw an increase of 32% on last year’s exhibitor numbers, which also includes a record number of Saudi businesses covering all aspects of the automotive aftermarket and underscoring the market growth within the country, with several new and returning exhibitors.

This year’s exhibition is set to break previous attendance records, with more than 19,000 visitors expected throughout the three days, resulting in an extended show floor which has seen the number of halls increase from three to five to keep pace with demand from exhibitors and visitors.

Following the official opening, Dr. Faisal Al-Kadi, Chief Executive Officer of Al-Kadi Commerce & Industry and Automechanika Riyadh Advisory Board member, shared expert insights on key industry developments within the automotive aftermarket in the region as part of his opening keynote speech.

Bilal Al Barmawi, CEO and Founder of 1^st Arabia, the licensee of Automechanika Riyadh directed by Messe Frankfurt Exhibition GmbH, said: “We are proud to officially open Automechanika Riyadh 2025, a platform that continues to drive transformation across Saudi Arabia’s automotive aftermarket. This year’s edition marks our most expansive and ambitious show yet, reflecting the Kingdom’s dynamic progress under Vision 2030.”

Aly Hefny, Show Manager, Automechanika Riyadh, Messe Frankfurt Middle East, said: “We’re excited to welcome a record number of visitors and exhibitors to this year’s Automechanika Riyadh, which promises to be our most international and dynamic edition yet. The strong growth in participation from global brands underscores the Kingdom’s rising influence in the automotive aftermarket. At the same time, the diversity of Saudi companies exhibiting highlights the strength of local innovation and industrial development. Together, they reflect the Kingdom’s evolving mobility landscape and our ongoing commitment to connecting markets and unlocking new opportunities.”

The Automechanika Riyadh Academy, which is held under the theme Localisation & Aftermarket Innovation on day one, featured a range of industry leaders, including Ulf Schulte, COO, EVIQ, who highlighted the rapid expansion of EV charging infrastructure in Saudi Arabia through strategic partnerships and the role of aftermarket solutions in enhancing the longevity and efficiency of charging networks.

Elsewhere, Mohammed Alsuhaim, Managing Director, National Automotive & Vehicles Academy (NAVA), outlined the critical role of training and development in shaping the future automotive workshop and showcased how NAVA is addressing the skills gap through hands-on, targeted training programs.

A panel discussion led by Emad Daghreri, Co-Founder & CEO, Autobia, and Alisdair Walton, Senior General Manager – Digital Transformation & IT, Abdul Latif Jameel Enterprises, focused on driving digital innovation and profitability for aftermarket distributors where they discussed implementing integrated e-commerce platforms and developing data-driven pricing strategies.

This year, Automechanika Riyadh will showcase case a range of product areas, including Parts & Components, Electronics & Systems, Tires & Batteries, Oils & Lubricants, Accessories & Customising, Diagnostics & Repairs, Body & Paint, and Car Wash & Care.

–ENDS-

About Automechanika Riyadh

Automechanika Riyadh, licensed by Messe Frankfurt GmbH, will take place from 28 April – 30 April 2025 at Riyadh International Convention and Exhibition Centre. This will be the 7th edition of Automechanika in Saudi Arabia, which is the leading exhibition dedicated to the automotive aftermarket industry in the Kingdom. The dedicated exhibition is one of 14 instalments of Automechanika – the most successful and largest automotive aftermarket exhibition brand in the world. 

For more information, please visit our website.

About 1st Arabia

1st Arabia Tradeshows & Conferences is a leading exhibition & conference organizer in the Kingdom of Saudi Arabia. Headquartered in Riyadh, 1st Arabia has regional offices in Jordan and is set to expand its operations in more countries regionally. 1st Arabia organizes top international trade exhibitions and conferences that provide unparalleled networking and business opportunities for companies looking to excel and grow within the Kingdom. Apart from conducting quality and high profile B2B trade fairs, country specific shows, corporate events, conferences, events management and festivals, 1st Arabia also provides a complete marketing tool and exhibition solutions to their valued clients. 1st Arabia is the only MICE organization in the Kingdom of Saudi Arabia who is a member of the International Organizations like IAEE, ICCA, MPI PCMA, SISO and, UFI.