Muhammad Yousuf Shaikh, An Auto Industry Consultant, Motorcycle Industry Expert, Motorcycle Designer, China Sourcing Expert, Serial Entrepreneur, and the Founder & Chairman of Pakistan China Motorcycle Industry Council (PCMIC), offers his analysis of the motorcycle trade & industry trends from Pakistan & China. The Chairman of PCMIC, working with the motorcycle trade & industry for over two decades, Yousuf believes that new energy EV projects could help the motorcycle industry to design and produce new energy, new design, new tech & large displacement motorcycles in Pakistan. For further details and for assistance, please email at [email protected]
The first two articles in this series traced the global arc of the electric vehicle—from its 19th-century origins to the Chinese factories now powering Pakistan’s streets. We then examined the challenges and opportunities that come with this influx. Now, we arrive at the most critical question: How does Pakistan move from being a mere importer to a true manufacturer of electric two-wheelers?
The answer lies in a word that industry insiders are increasingly focused on: localization. And at the heart of this push is a structured, phased plan being developed by the Engineering Development Board (EDB) in collaboration with key industry stakeholders—chief among them, the Pakistan China Motorcycle Industry Council (PCMIC).
Who is PCMIC? The Bridge Between Nations
To understand the localization drive, one must first understand the organization helping to architect it. The Pakistan-China Motorcycle Industry Council (PCMIC) is a niche, industry-focused body dedicated to fostering bilateral trade, investment, and technology transfer between Pakistan and China in the motorcycle sector.
Founded in October 2011 by Muhammad Yousuf Shaikh (Founder and Chairman), PCMIC did not emerge from a vacuum. It built upon pioneering work dating back to 2002, when Shaikh first began introducing economical, high-quality motorcycles from top Chinese manufacturers into the Pakistani market—including models in the 70cc and 125cc segments that helped popularize Chinese imports.
With over 35 years of experience in the motorcycle industry as of 2026, Shaikh established PCMIC as a structured platform to formalize advocacy for policy reforms, joint ventures, and bilateral opportunities. The council’s mission extends across the entire spectrum: gasoline motorcycles, electric vehicles (EVs), parts sourcing, manufacturing localization, SME support, and export promotion.
Today, PCMIC serves as the essential bridge for Chinese investment under the CPEC framework, facilitating everything from policy dialogue to direct sourcing and consulting. Its Lahore-based operations (including PCMIC House) and active engagement via platforms like Facebook keep stakeholders connected to the latest developments in parts sales, events, and trade trends.
The Localization Blueprint: EDB’s Phased Approach
Now, PCMIC is channeling its bilateral expertise into one of the most significant policy initiatives in recent years: the government’s upcoming subsidy scheme for electric motorcycles and scooters, and the accompanying plan for parts localization.
As detailed in a recent report by Automark.pk, the Engineering Development Board (EDB) has prepared a comprehensive proposal for the standardization of key EV components. This is not just about encouraging local assembly; it’s about creating a systematic, phased roadmap that ensures quality, safety, and genuine technology transfer.
The core of the proposal focuses on standardizing three critical components that form the heart of any electric two-wheeler:
· Battery (Traction Battery): Standardization here is crucial for safety, performance, and interoperability—especially if battery-swapping networks are to become a reality.
· Electric Motor: Defining standards for motors ensures efficiency and reliability, preventing a flood of subpar, mismatched units that could harm consumer trust.
· Motor Controller: Often called the brain of the EV, the controller’s standardization is key to vehicle performance and diagnostics.
Why Localization Matters for Pakistan
For too long, Pakistan has relied on completely built-up (CBU) imports, which limits technology transfer and keeps value addition overseas. Localization flips this model. It creates jobs, builds technical expertise, reduces dependence on foreign currency for finished goods, and ultimately lowers costs for consumers.
The EDB’s phased approach recognizes that this transformation cannot happen overnight. It requires careful planning, investment, and collaboration between Chinese technology partners and Pakistani manufacturers.
The Phased Localization Timeline
Perhaps the most important aspect of the EDB’s plan is its gradual, realistic timeline for achieving indigenization. This phased approach allows the industry to build capacity step by step, avoiding the pitfalls of rushed, low-quality local production.
According to the proposals, the localization roadmap is structured as follows:
Phase 1 (Years 1-2): CBU Imports & Basic Assembly
In the initial stage, complete built-up (CBU) units from China will continue to enter the market to build consumer demand. Simultaneously, assemblers will begin bringing in completely knocked-down (CKD) kits for basic assembly, laying the groundwork for local skills development.
Phase 2 (Years 3-5): Component Localization
This is the critical transition phase. Under EDB’s oversight, assemblers will be required to begin localizing specific parts. The focus will be on high-impact, locally manufacturable components such as:
Frames and chassis
· Body panels and plastic parts
· Wiring harnesses
· Suspension components
· Basic electronic assemblies
Phase 3 (Years 5-7): Deep Localization
In the final phase, the goal is to achieve significant local value addition, including the assembly and eventual manufacturing of batteries, motors, and controllers within Pakistan, subject to achieving necessary quality standards and economies of scale.
PCMIC’s Role: Ensuring a Smooth Transition
As the EDB moves forward with these plans, PCMIC is actively working to ensure the transition benefits all stakeholders—from Chinese partners to Pakistani SMEs.
“The policy framework must encourage not just assembly, but deep localization of parts, especially batteries and motors,” emphasizes Muhammad Yousuf Shaikh. “This will ensure quality control, easier maintenance, and true technology transfer. We are inviting Chinese investors to establish R&D facilities and manufacturing units in Pakistan—proposed locations like Sunder Industrial Estate in Lahore are ideal for this.”
The council is also advocating for SME-friendly policies within this framework:
· Low tariffs on raw materials
· Incentives for joint ventures
· Support for training centers
· Export incentives once local production achieves scale
The goal is not just to serve Pakistan’s domestic market of over 2.5 million annual motorcycle sales but to eventually position Pakistan as a regional hub for EV manufacturing.
The Economic Case for Local Manufacturing
Beyond the technical benefits, localization makes strong economic sense. Every component manufactured locally reduces the import bill, creates employment, and builds industrial capacity. The battery alone—which constitutes nearly one-third of an EV’s cost—represents a massive opportunity for local value addition if assembly and eventually cell manufacturing can be established.
Furthermore, a localized EV industry would support the growth of ancillary sectors: raw material suppliers, tooling and mold makers, logistics providers, and specialized service centers. This multiplier effect can transform Pakistan’s industrial landscape.
The Road Ahead: Standards as the Foundation
For Pakistani consumers, this localization push will eventually mean more affordable, durable, and serviceable electric vehicles. For entrepreneurs and technicians, it means new jobs in parts manufacturing, battery assembly, and specialized EV repair. For the nation, it means reduced import dependency and a cleaner transport future.
The EDB’s standardization and localization plan, supported by industry bodies like PCMIC, provides the blueprint. The challenge now is execution: ensuring that the phased timeline is followed, that quality standards are enforced, and that the partnership between Chinese technology and Pakistani enterprise reaches its full potential.
PCMIC invites Chinese manufacturers and local entrepreneurs to explore joint ventures under this phased localization framework. With Pakistan’s young workforce, strategic location under CPEC, and growing domestic market, the time to invest is now.
In Conclusion
The ride toward a localized EV industry has officially begun. With the right policies and partnerships, Pakistan is poised to move from the passenger seat to the driver’s seat of its own electric future.
This is the third article in a monthly series by Muhammad Yousuf Shaikh tracking Pakistan’s electric vehicle transformation. For industry consultation, joint ventures, or to share your insights, contact the Pakistan China Motorcycle Industry Council at [email protected] or visit PCMIC House in Lahore for more information.
By Muhammad Yousuf Sheikh, published in Automark’s printed edition of April-2026