LAHORE: As Pakistan rolls out its long-awaited New Energy Vehicle (NEV) Policy 2025-30 — aimed at cutting emissions and reducing fuel dependency — industry voices are calling for a rethink on how new technologies are priced and marketed to consumers.

Speaking to the media in Lahore, Syed Asif Ahmed, General Manager Marketing Division at MG Motors, welcomed the policy as a step in the right direction but criticised the local hybrid electric vehicle (HEV) market for remaining largely unaffordable and inaccessible to the average consumer.

“HEVs in Pakistan have become a luxury item for a niche market,” he said. “Despite policy support, the real benefits have not trickled down to car buyers.”

Mr Ahmed noted that the most expensive hybrid-electric sport utility vehicle (SUV) in the country — a seven-seater — carries an ex-factory price tag of Rs16 million, while five-seater variants are priced between Rs9.6m and Rs12m.

Plug-in hybrids better suited for urban Pakistan, says auto executive

“The industry must seriously consider affordability,” he stressed, adding that plug-in hybrid electric vehicles (PHEVs) are a better alternative for urban mobility, offering practical electric range alongside hybrid versatility.

The NEV Policy, unveiled by the Ministry of Industries, introduces official classifications for electric vehicles (EVs), PHEVs, and hydrogen-powered vehicles as “New Energy Vehicles”, aligning Pakistan’s regulatory framework with global standards.

Mr Ahmed also criticised earlier tax incentives that allowed traditional hybrids to be classified as NEVs, primarily benefiting established automotive players. “Unfortunately, these subsidies neither served the environment nor the public. They simply padded profits for principal companies and their local partners.”

In contrast, he said, PHEVs offer a meaningful solution: pure electric driving for short urban commutes and hybrid flexibility for longer journeys — addressing the range anxiety often associated with EVs.

He pointed out that affordability remains a major hurdle. Globally, hybrids become financially viable when priced within 10pc of an equivalent petrol vehicle. In Pakistan, however, the price gap is much wider — averaging 45pc.

“For example, a C-segment SUV hybrid can cost up to Rs12m, while its petrol counterpart is priced around Rs8m — a difference of Rs4m,” he said.

While the NEV policy outlines a progressive roadmap, industry implementation remains critical. With more PHEV models expected to enter the market, the key question is whether automakers will pass on incentives to consumers — or repeat the hybrid-era model of high margins and minimal environmental benefit.

“The potential is enormous,” Ahmed concluded. “But only if we prioritise real consumer value and environmental impact over short-term profits.”

Published in Dawn, July 13th, 2025