KARACHI: Industry stakeholders at an automotive sector dialogue on Tuesday said that while the targets set under the New Electric Vehicle Policy (NEVP) 2025-30 are ambitious, a phased and practical approach towards green mobility is more achievable given current limitations.

Participants at the event, titled “Shifting Gears: Launch of Automotive Study and Stakeholders Dialogue” — organised by Indus Consortium in Karachi — pointed to barriers such as limited public charging infrastructure, high upfront vehicle costs, and the national grid’s reliance on fossil fuels.

Speakers noted that Pakistan has only 35 public charging stations, significantly fewer than regional peers like India and Nepal. Meanwhile, 60 per cent of the country’s power generation still depends on fossil fuels. They warned that without decarbonising the national grid, the shift to electric vehicles (EVs) would simply relocate emissions instead of reducing them.

A research report titled “Green Transition — Barriers and Opportunities for the Automotive Industry in Pakistan”, jointly launched by Indus Consortium and the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), was also unveiled at the event. The study highlighted both structural barriers and emerging opportunities in the green transition.

Stakeholders stress localisation, green grid, and battery recycling as crucial for sustainable adoption of electric vehicles

Industry representatives acknowledged that some progress has been made. Local assembly of hybrid vehicles, such as those by Indus Motor Company (IMC), and the planned entry of global EV manufacturers like BYD were seen as steps towards localisation of clean vehicle production.

Ali Asghar Jamali, CEO of IMC, said that hybrid and plug-in hybrid vehicles (PHEVs) should be viewed as part of the green mobility spectrum, not just battery EVs. Given that over 60pc of electricity comes from fossil fuels, he said, transitioning solely to EVs may not yield significant environmental benefits in the short term.

Hussain Jarwar, CEO of Indus Consortium, said the NEVP could become a successful model — similar to Pakistan’s solar adoption — if issues related to financing and infrastructure are addressed.

Former chairman of the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM), Aamir Allawala, stressed the importance of localising auto parts to realise full benefits of EV adoption. He also raised concerns about the environmental impact of battery disposal in the coming years.

Muhammad Armughan of the FPCCI said the study focused on Scope 3 emissions from IMC’s supply chain and identified viable decarbonisation pathways. He urged targeted policy interventions, including fiscal incentives, technology transfer, and green financing, to accelerate the sector’s transformation.

Participants called for consistent policy implementation, expansion of EV infrastructure, and financial support mechanisms to encourage both electric and hybrid vehicle adoption.

BYD’s entry and local assembly plans

Topline Securities, citing a management meeting with HUBCO officials, reported that Chinese automaker BYD has received a stronger-than-expected response in Pakistan. It is currently the largest EV brand operating in the country, with increasing demand for its Atto 3 SUV.

Local assembly of BYD vehicles is expected to begin in the second half of 2026. The company plans to offer a full vehicle range, including small cars and SUVs, and is prioritising models suited to consumers who can install private charging units.

BYD is also developing Pakistan’s first nationwide EV charging network along the Motorway from Karachi to Peshawar, aiming to support long-distance EV use.

The management added that future car exports to right-hand drive markets are possible, but current efforts are focused on developing the plant. Two international financing partners have already joined the project.

Published in Dawn, October 8th, 2025