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

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

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

Global Alliances: Japanese Automakers & Chinese EV Giants

Here are key partnerships redefining the global auto landscape:

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

The Global Supply Chain Shift — Where is Pakistan?

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

The key challenges:

• Lack of EV parts localization

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

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

Pakistan’s Strategic Advantage — The China Factor

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

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

Why This Matters:

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

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

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

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

Policy Direction: What Pakistan Must Do Now

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

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

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

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

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

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

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

4.      Invest in skill development and technical training

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

5.      Collaborate with global OEMs and Tier-1 suppliers

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

Key Takeaway: Be the Next EV Hub Before Others Do

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

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

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

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

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

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

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

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

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