KARACHI: As the auto industry shifts towards greener technologies across the world, MG Motors Pakistan has also stepped up efforts to get in the same lane with plans to introduce hybrid, plug-in hybrid and fully electric vehicles.

The company has already tasted success with its MG HS sports utility vehicle, both the imported and locally assembled petrol versions, selling a total of 15,000 units in the last two and a half years.

For now, the company is looking to launch two new MG HS variants — Excite and 2.0 AWD — and its first sedan, the 1,600cc MG GT.

In the coming years, MG plans to become the only brand in Pakistan to offer a range of hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs) and fully electric vehicles (EVs).

Firm plans to bring locally assembled plug-in hybrid electric vehicles next year with $7m investment

Syed Asif Ahmed, general manager of the marketing division at MG, told Dawn during a visit to the company’s assembly plant in Lahore that the automaker was planning to bring locally assembled PHEVs in 2024 with an investment of 50 million Chinese yuan (around $7m).

MG is also looking towards the government of Pakistan to formulate an EV-friendly policy. “Provided with robust policy support, MG can lead the transformation of Pakistan to new energy vehicles (NEVs) and reduce the fuel import bill,” Mr Ahmed added. The expansion plans for EV production depend on favourable policy support, and according to Mr Ahmed, the current MG facility in Lahore’s JW SEZ Autopark had ample space for this expansion.

Amid some scepticism about introducing hybrid technology instead of focusing on EVs, he emphasised that Pakistan should not lag in EV adoption, mentioning Turkiye’s Togg and Saudi Arabia’s Ceer, the first electric vehicle brands in both countries.

In response to concerns about the high cost of locally assembled hybrid vehicles despite huge concessions, Mr Ahmed explained that in Pakistan, hybrid electric vehicles enjoyed more benefits in general sales tax than electric vehicles, with 8.5 per cent for HEV and 25pc for EV.

He said this anomaly didn’t exist anywhere else in the world, and with batteries being the most expensive part of NEVs, it led to higher prices for these vehicles.

Speaking on potential challenges posed by the country’s current electricity crisis and lack of charging infrastructure, Mr Ahmed compared the EV shift to the transition from landline phones to cell phones to smartphones. “EV will become the first choice in mobility and infrastructure will follow, if not lead this transformation,” he said.

Sazgar Engineering has also launched the first locally assembled hybrid Haval 6 and Indus Motor Company (IMC) is coming out with Toyota Cross. As per a note of Topline Securities released on Monday, Honda Atlas Cars Limited in a corporate briefing said it plans to launch hybrid vehicles in Pakistan.

MG also plans to diversify its offerings with the introduction of a 1,600cc MG GT sedan, hoping to tap into the country’s sedan market, which Mr Ahmad said held a 45pc market share.

To remain competitive, MG is focusing on localising high-value parts and exploring potential export opportunities.

Ongoing economic challenges, including high interest rates and rising prices due to the rupee’s depreciation, have limited the company’s production to 400 units of SUVs per month compared to a capacity of around 2,100.

However, Mr Ahmad said the company remained optimistic about the country’s automotive potential. “We have not laid off a single staff member since the company’s inception in 2021. The total number of employees stands at 400,” he added.

With majority shareholder Shanghai Motor International Limited expressing long-term commitment to the Pakistani market, MG Pakistan represents a significant $100m investment as the fourth knock-down (KD) plant globally.

Pakistan’s auto industry would need to foster global partnerships to produce high-value and high-tech auto parts to transform into a vehicle export market, he said.

Published in Dawn, July 26th, 2023