Learning from Past – Earning from Present – Growing from Future
Episode: 2
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. In today’s article, we will review the trends that have emerged in the auto industry in the last few years and the facts behind them that led to those trends and will also review their continuation in the coming years.
Now Read On….
If we talk about the current auto industry of Pakistan, the 2 trends are very prominent. Number 1 is the increase in demand for SUV cars, and number 2 is the beginning of the journey of electric hybrid cars and people’s concerns and curiosity as well as their interest in buying them.
First, Let’s Review SUV
The demand for SUVs, or sports utility vehicles, is increasing in the vehicles running on the roads in many major countries of the world. The increase is not only in rich and developed countries, but also in countries with weak economies like Pakistan.
According to a study by Sherman Securities, the SUV market in Pakistan has doubled in 2024 and their number has currently reached 16,000 units, while this number is estimated to reach 25,000 units in the fiscal year 2025. On the other hand, it is also being said that the number of hybrid SUVs in the market will reach 20,000 units in the fiscal year 2025.
Concerns of the United Nations and environmental experts
The United Nations and environmental experts have emphasized that due to the deterioration of the ecosystem and the increasing cost of living, the need for small and environmentally friendly vehicles should be emphasized. SUVs negate green technology due to their large size and high carbon dioxide emissions. SUVs consume more resources in production, occupy more space on the roads and affect the sustainability of the roads. Despite all these concerns, the huge increase in the number of such SUVs is contrary to this reality.
For these reasons, it was expected that the demand for small and hybrid vehicles would increase, but the opposite is true. At present, the weather on the planet has intensified and it has become necessary to reduce carbon emissions in all sectors, including transport. If SUV sales are continuously increasing.
Market data situation
According to data from the organization Global Data, 54% of the petrol, diesel, hybrid and electric vehicles sold globally in 2024 were SUVs. This proportion is three percent higher than in 2023 and five percent higher than in 2022. According to the International Energy Agency IEA, 95% of the SCUVs currently on the road run on fossil fuels, while five percent are electric, i.e. hybrids. The state of SUVs in Europe. According to analysts, in 2018, about 3 million 27 thousand small cars were sold in Europe, while in 2024 their number decreased to 2.1 million 30 thousand. During the same period, sales of small SUVs increased from 1.5 million to about 2.5 million.
Status of SUVs in China.
China was the top country selling SUVs in 2024, with about 11.6 million SUVs sold in a year, followed by the United States, India and Germany.
Reasons behind the SUV trend
- Despite all these concerns, it is difficult to ignore SUVs. This is because these vehicles are large and heavy, and their interior is also spacious.
- They have high ground clearance and a high driving position, which gives the driver a better view of the road and provides confident and safe driving.
- In addition, there is a trend of introducing hybrid models in new models and SUVs easily provide space for a large battery for hybrids.
- The purchasing power of people from under-developing countries is increasing, due to which SUVs are being liked more.
- Car manufacturers also introduce only those vehicles that are in demand in the market and marketing is also done in such a way that the customer feels that they are buying a special vehicle or a large and comfortable vehicle at the price of a normal vehicle. Perhaps because of these qualities, SUVs are being liked.
Status of SUVs in Pakistan.
- It comes to light that high ground clearance is liked due to the uneven roads of Pakistan.
- The family system in Pakistan is quite strong, due to which it has family-friendly features and more seating capacity. Safety features that were lacking in small cars are also being given in SUVs.
- To some extent, the new SUV models are also quite fuel efficient.
- Even today in Pakistan, a car is considered a symbol of wealth and affluence, so SUVs fulfill this social desire of people due to their size and luxurious look. Popular
Popular Models of SUVs in Pakistan
- Toyota Fortuner
- Kia Sportage
- Honda BRV
- Hyundai Tucson
- GWM
- MG HS
These SUVs are quite popular and have won the trust of people, while the names of Jetour and Chery can be mentioned among the newcomer’s models.
2ndly, Let’s Review EV/ Hybrid
As per state media reported, Pakistan has granted licenses to 57 manufacturers of electric vehicles (EVs), as the government moves to transition to green transport solutions and beat climate change.
The government of Pakistan approved an ambitious National Electric Vehicles Policy (NEVP) in 2019 with the goal of electric vehicles comprising 30 percent of all passenger vehicle and heavy-duty truck sales by 2030, and an even more ambitious target of 90 percent by 2040. For two- and three-wheelers, as well as buses, the policy set a goal of achieving 50 percent of new sales by 2030 and 90 percent by 2040.
“The government is focusing on expanding local EV production, with licenses issued to fifty-five manufacturers for two and three-wheelers, and two for the assembly of four-wheelers,” Radio Pakistan said in a report. “A plan is under consideration for establishing charging stations, including fast chargers and battery swapping stations.”
Public ana Media Trend
Nowadays, comments on electric vehicles are common among people on almost every media forum and in public gatherings.
The government of Pakistan has also regularly launched fleets of electric buses in Islamabad and Lahore.
Car assembling and selling companies are also trying to introduce every new model from electric and hybrid. Even the most advanced hybrid vehicle, PHEV i.e. Plug-in Hybrid Car, has been introduced by MG Car Company and is becoming quite popular among the public.
Talking about pure electric vehicles, EV, then BYD has started delivering CBU models of pure EV vehicles.
Electric Two Wheelrs, means E Motorcycles are springing up almost everywhere and a significant number of people in Pakistani society have started using them regularly and others are gathering information to convert to them.
Considering this news and the situation of electric vehicles, we can say with certainty that numerous new business opportunities are going to arise in the automotive sector and the EV-related sector will grow in the near future.
Businesses related to the auto sector should not ignore this situation and should review all the sectors of EV while expanding their existing businesses and starting new businesses, which we have just started to mention.
Electric car business opportunities
Along with the title, a short description of the EV business ideas is also given. Read, learn, explore, think, and start your dream business related to electric vehicles.
- EV Training Centers, Institutes
First, EV experts will be needed in the automotive industry and their training will be needed to produce experts. EV training centers will be the best choice as additional sectors in the existing auto sector.
Entrepreneurs as a business, EV training centers and institutes will be the best choice. EV training centers and institutes will not only bring financial benefits to entrepreneurs, but this initiative will provide an opportunity for the nation of Pakistan and the industrialization of Pakistan to understand, adopt and develop modern technology.
- Electric Car Servicing Garage
Electric car service is entirely different from internal combustion engine vehicle service. Electric motor repair, Inverter repair etc. would be part of the servicing garage.
- EV Charging and Chill Station
Another electric car-related business opportunity is EV charging station. Electric car charging station business opportunity will be practical in Pakistan as the number of EVs increases day by day. The time taken to charge an electric vehicle is more than the time to fill fuel of IC engine vehicle.
The EV charging and Chill stations would be some infrastructure where drivers can drink coffee, watch a movie, have a meal, play games, etc. while their EV charges.
- Electric Car Painting & Denting Workshop
Electric car body and paint specialist workshop would be another business opportunity related to electric vehicles due to electric safety concerns and conventional body and paint shop have illiterate workers.
- Charging Station Setup Installation/ Maintenance Service
Electric car charging station setup installation service can be started Service, Charging station setup training service along with charging station repair business.
- Electric Car Rental Service
Electric car rental service can be started to those who are due to limited affordability of purchasing EV but craze of using hi-tech, luxurious or supports EV cars.
- Spare Parts Manufacturing/ Selling
Electric vehicle spare parts manufacturing or selling is another business that can be started. It’s also good to sell spare parts after importing them from the manufacturing units.
- Electric car battery shop
Battery replacement is necessary in electric vehicles in almost 5 to 10 years. An electric car battery sales shop would be a profitable venture as the number of EVs increases.
- Electric Car Washing
Electric car washing can be started as part of other car washing stations. This is another add to the electric car business opportunities.
- Mobile Electric Cars Repair Services
Electric car repair stations that can be provided at the location where the car breaks down would be helpful. The person who knows electric car repair can easily start the business and promote the business through advertisements.
- Portable Charging Station
Electric car charging stations are not available in all places. There is a place for portable charging stations to charge electric cars at emergencies. The business can be started along with other businesses.
- Solar Charging Station Installation Center
Electric vehicle charging stations that use energy from sun is a solution for high electricity demand of charging stations. Installation of solar based homes, or private charging stations require expertise. There is a good business opportunity.
- Battery Scrapping
Batteries of electric cars would be unusable after 1000s of charge-discharge cycles. Lithium might cause water and soil pollution if not disposed of properly.
A battery scrapping station can be set up to reuse the old battery parts and dispose of the waste.
The battery of EVs can be used for some other electrical storage purposes once the capacity is reduced.
- Multi Story Residencial Pay Park & Charging
Residents of multi-story residencia can’t avail in-house parking and EV domestic charging ports for Ev Cars and E Motor Sycle/ Scooter. Business opportunities have arisen for commercial parking with charging ports and chargers for Electric Cars and Electric Scooters in such buildings.
There are more EV and Automotive sector businesses which we will explore in next episode of Monthly AUTOMARK’ S article Grow Automotive Grow Pakistan, INSHALLAH.
This exclusive article has been published in Automark Magazine’s April-2025 printed edition. Written by @Muhammad Mumtaz Hussain
