Oil shock fuels EV surge, fertiliser sector stable

As global oil prices surge past $100 per barrel amid ongoing Middle East tensions, industry leaders in Pakistan's mobility and agriculture sectors are describing the crisis as both a challenge and an opportunity, particularly for accelerating electric vehicle (EV) adoption and safeguarding domestic fertiliser production.

Representatives from Mega Motor Company and Engro Fertilizers, speaking at a webinar hosted by The Express Tribune, highlighted how rising fuel costs and supply disruptions are reshaping consumer behaviour, industrial strategy, and policy priorities. Danish Khaliq, representing Mega Motor, Pakistan's partner of Chinese EV giant BYD, said the volatility in fuel prices has directly impacted transportation costs, prompting a sharp shift in consumer interest toward electric mobility. "The auto sector is directly exposed to fuel price fluctuations, and what we're seeing now is a significant behavioral shift," Khaliq noted. "Consumers are increasingly factoring in running costs, not just the upfront price of vehicles."

According to Khaliq, customer inquiries for electric vehicles have surged by 200-250% over the past two months, driven by the promise of up to 75% savings in fuel costs. He described the current crisis as a "tipping point" that could accelerate Pakistan's transition toward new energy vehicles.

Mega Motor, which began operations in Pakistan in 2025, is already moving to capitalise on this momentum. The company recently launched an electric vehicle priced at around Rs7.3 million, aiming for price parity with conventional internal combustion engine (ICE) and hybrid vehicles.

"We are not just testing the market through imports; we are also investing in local production," Khaliq said, adding that the company is establishing a manufacturing plant with an annual capacity of 25,000 vehicles, expected to become operational later this year.

However, he stressed that achieving the government's target of 30% EV penetration by 2030 remains a "tall order," citing the need for consistent policies and long-term regulatory clarity to sustain investor confidence.

On the agriculture front, Atif Muhammad, Chief Commercial Officer at Engro Fertilizers, offered a relatively reassuring outlook on food security, despite the broader energy crisis.