'100% local' EV production begins

Lahore plant to launch sub-Rs1m electric car by June or July

KARACHI:

For the first time in Pakistan's 77-year history, the production process of a "Made in Pakistan" car built entirely with 100% locally manufactured parts has begun. This was stated by Engineering Development Board (EDB) CEO Hammad Mansoor while speaking to The Express Tribune during an iftar dinner hosted by SMEDA Director Mashhood Khan on Thursday.

He said the Made-in-Pakistan electric vehicle (EV) is expected to be introduced by June or July this year. To encourage local automotive manufacturers and promote localisation, the government is planning to reduce taxes on vehicles in the upcoming federal budget.

The first plant for producing the Made-in-Pakistan EV will be established in Lahore. The price of the locally produced EV is expected to be below Rs1 million, enabling motorcycle users to transition more easily to cars.

According to Mansoor, the EV developed with 100% local components will be capable of travelling 180 to 200 kilometres on a single charge. Under the local automotive policy, the prime minister has decided to fully support local auto manufacturers.

Plans are also being developed to achieve 100% localisation of Made-in-Pakistan vehicles so they can eventually be exported at competitive costs. Mansoor said the monopoly of large automobile companies in Pakistan has ended, which is evident from the declining prices of vehicles produced by them.

He added that two to three Pakistani companies are interested in manufacturing Made-in-Pakistan cars. The prime minister has also prepared a plan to significantly reduce the prices of electric motorcycles and promote their exports.

Mansoor noted that small and medium enterprises (SMEs) play a vital role in economic growth, GDP expansion and job creation. He said that under the new automotive policy, the government plans to discourage imports of auto parts while offering incentives to local manufacturers.

SMEs producing auto parts locally must have their products used in vehicles, and the new policy is being designed with these realities in mind.

He further said that under the prime minister's programme, a Rs100 billion subsidy will be provided to promote localisation and support electric two-wheelers and three-wheelers. Over the next four years, subsidies will be provided in phases for 2.2 million electric two- and three-wheelers.

In the first phase, subsidies are being provided for 40,000 electric two- and three-wheelers. An Rs80,000 subsidy will be given for electric motorbikes, while Rs400,000 will be provided for electric three-wheeler rickshaws.

After Eidul Fitr, another 77,000 electric two- and three-wheelers will be included in the subsidy programme, followed by an additional 250,000 units after July. In total, subsidies will be gradually provided for 2.2 million electric two- and three-wheelers over the next four years. Responding to another question, Mansoor said that four lithium battery manufacturing plants are being established in Pakistan. The first factory is expected to introduce locally produced lithium batteries by May 2026.