Islamabad, Sep 23: The global shift to electric vehicles (EVs) is growing rapidly, with one in four cars sold worldwide now being electric. However, in Pakistan, purchasing any car—especially EVs—remains a challenge due to high interest rates and inflation.
Despite this, the introduction of EVs is gaining momentum, with notable excitement surrounding Chinese automaker BYD’s partnership with Mega Motor Co. and the entry of Sazgar Engineering Works into the EV market.
Currently, EVs in Pakistan are mostly targeted at the affluent, as limited charging infrastructure and mechanical expertise hinder widespread adoption.
Changan, through its Deepal EV variants, is explicitly catering to the top one percent of the market, according to CEO Danial Malik.
Changan’s strategy includes leveraging the Master Group’s long-standing presence in the automotive sector and localizing 15-20% of EV parts to make these vehicles more accessible in the future.
Another significant hurdle for EV adoption in Pakistan is the pricing of charging infrastructure. Under the National Electric Power Regulatory Authority’s (NEPRA) pricing policy, commercial chargers have to follow fixed pricing, limiting profitability.
Danial Malik of Changan points out that this policy needs revisiting, as widespread distribution of chargers will only occur when the infrastructure becomes profitable.
Additionally, the current incentives, such as reduced duties on EVs, will expire in 2026, potentially making EVs more expensive and slowing down adoption.
The Rs3 million financing ceiling also poses challenges for both EV and internal combustion engine (ICE) vehicle purchases, limiting easy financing options.
