Industry demands shift in hybrid vehicle market

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LAHORE:

As Pakistan unveils its long-awaited New Energy Vehicle (NEV) Policy 2025-30, aimed at reducing emissions and fuel dependence, voices from within the auto industry are calling for a shift in how new technologies are priced and positioned in the market.

In a recent interaction with media in Lahore, Syed Asif Ahmed, General Manager Marketing Division at MG Motors, said that while the policy is a step in the right direction, the local Hybrid Electric Vehicle (HEV) market remains largely unaffordable and does not pass on the benefits of technological advancements to the average Pakistani consumer. "HEVs in Pakistan have become a luxury for a niche market," Ahmed remarked. "Despite policy support, the real advantages have not trickled down to car buyers."

He noted that the most expensive HEV SUV in Pakistan – a seven-seater – carries an ex-factory price tag of Rs16 million while five-seater variants range from Rs9.6 to Rs12 million. "The industry must think seriously about affordability," he added, "and consider shifting towards Plug-in Hybrid Electric Vehicles (PHEVs), which are better suited for urban use and offer real electric range."

Unveiled by the Ministry of Industries, the NEV Policy 2025-30 introduces the official classification for EVs, PHEVs and hydrogen-powered vehicles as "New Energy Vehicles", in line with global standards.

Ahmed was also critical of how earlier tax incentives were structured, allowing traditional hybrids to be labelled as NEVs, primarily to benefit large automotive players.

"Unfortunately, these subsidies neither helped the environment nor the people. They only benefited the principal companies and their local partners."

In contrast, PHEVs offer a more meaningful alternative, with pure EV driving capabilities for daily urban commutes and hybrid flexibility for long routes, helping tackle the range anxiety often associated with EVs.

MG Motors has introduced Pakistan's first locally assembled Plug-in Hybrid SUV – the MG HS PHEV. It features a 16.6 kWh lithium-ion battery offering over 52 km of electric-only range, combined with a 1.5L turbocharged engine to deliver 260 HP and 370 Nm of torque, achieving 0-100 km/h in just 7.1 seconds. Priced under Rs10 million, Ahmed described the MG HS PHEV as "the best value-for-money vehicle in its class," offering advanced tech, performance and fuel economy. He informed the media that MG has sold more than 16,000 vehicles in Pakistani market so far out of which approximately 2,000 were PHEVs.