The local automobile industry in Pakistan has opposed the proposed electric vehicle (EV) policy, expressing concerns that it is in contradiction of Auto-Industry Development Policy 2016-21.
Prime Minister Imran Khan had directed the Ministry of Climate Change to finalize an electric vehicle policy and present it before the federal cabinet for approval. During the meeting, officials of the ministry stressed the need for promotion of electric vehicles to reduce carbon emissions. Besides, it was also discussed that electric vehicles will not only help cut oil import bill but also address issues stemming from climatic changes.
However the local automobile industry has serious concerns over EVs. According to them, the biggest issue with the EV policy is that it promotes import of completely built units (CBUs) instead of local manufacturing. Emphasizing that EV policies in the US, China, India and many other countries have been devised in a manner so as not to hurt the indigenous automobile sector. In Pakistan however, EV policy depends on imports and is against Make in Pakistan slogan of the government, the industry representatives said.
They said that 30% components of EVs include battery, motor and the battery management system, while 70% components are those of conventional cars, which are already being produced locally for the locally assembled vehicles. The policymakers should not emphasize on import of CBUs, instead focus on local assembly and import 30% components only.
According to Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) ex-chairman Mashood Khan:
EV is the future and needs long term planning. EVs should be introduced gradually over a period of seven to 10 years. Our market is limited to 0.25 million cars per year, we should target the whole region and become exporters of EVs.