Mohsin Siddiqui (Chief Reporter)
The landscape of Electric Vehicle Manufacturing (EVM) in Pakistan is witnessing significant momentum, with stakeholders advocating for policy amendments and incentives to foster growth.
Proposals for 4-Wheel EVM Industry
Having secured Electric Vehicle Manufacturing (EVM) licenses for 2-3 Wheelers, manufacturers are now rallying for tax exemptions on sales tax, income tax, and customs duty for 4-wheel EVMs. Additionally, proposals urge the inclusion of Semi Knocked Down (SKD) parts of 4-wheel electric vehicles in the upcoming budget for 2024-25.
To facilitate the import of SKD parts, manufacturers are advocating for amendments in the Customs Act, coupled with a five-year tenure at a 10 percent customs duty rate. Presently, only Completely Built-Up (CBU) and Completely Knocked Down (CKD) parts are permitted, posing a regulatory hurdle for the EVM industry.
Chinese companies like Pak-China Huzai Green Energy, M/S MG Company, and M/S DFSK Motors are vying to make inroads into the EVM market, underscoring the sector’s global appeal. However, challenges persist, including regulatory barriers and infrastructure constraints.
Incentivizing Localization and R&D
In a bid to promote local manufacturing and innovation, stakeholders emphasize the issuance of Engineering Development Board (EDB) certificates under a streamlined framework. Moreover, incentives for Research & Development (R&D) and human resource development are deemed essential for industry sustainability.
Critical to EVM proliferation is the establishment of charging infrastructure and adherence to quality standards. Proposed measures include financial loan policies, mandated EV charging facilities at filling stations, and discounted rates for charging companies, underpinned by stringent quality control measures.
While the EVM industry holds promise, challenges such as battery charging infrastructure, pricing concerns, and market acceptance loom large. The leasing of EVM vehicles emerges as a potential strategy to mitigate entry barriers and foster consumer adoption.
The EVM sector in Pakistan stands at a pivotal juncture, buoyed by burgeoning interest and stakeholder initiatives. However, unlocking its full potential necessitates concerted efforts in policy reform, infrastructure development, and market stimulation. By addressing regulatory bottlenecks and incentivizing innovation, Pakistan can carve a niche in the global EVM landscape.
