A domestically produced, fully electric car is anticipated to hit the Pakistani market by June 2026 with a price tag of approximately PKR 1 million, while existing vehicle prices could plummet by as much as PKR 2.5 million, according to the head of the Engineering Development Board (EDB).
Speaking to journalists at an iftar dinner last night, EDB Chief Executive Hammad Mansoor stated that the long-standing dominance of a few large automobile companies was ending. He attributed the potential price reductions to the entry of new manufacturers into the market and an increased focus on localisation.
A crucial element in this shift is local battery production. Mr Mansoor revealed that Pakistan”s first lithium battery manufacturing plant is set to begin operations by May, with a second facility expected in September. He noted that with 74 per cent of battery components to be produced domestically, the cost of electric vehicles would be significantly reduced.
This localisation effort is projected to lower the cost of batteries from the current import price of around $96 to a local production cost of nearly $72. The EDB chief explained that locally developed electric vehicles would offer a range of approximately 180 kilometres, with some advanced models potentially reaching up to 1,200 kilometres on a single charge.
The government”s new auto policy emphasizes localisation to enhance exports and competitiveness, Mr Mansoor remarked. He indicated that a substantial reduction in vehicle taxes is likely in the forthcoming federal budget, which would make hybrid, electric, and conventional fuel-powered vehicles more affordable.
Furthermore, electric vehicles are expected to be included in the prime minister’s PAVE programme, which currently provides subsidised motorcycles and rickshaws. He also revealed that 42 automobile manufacturing plants have already been established in the country, with a new vehicle assembly plant being set up in Lahore and a battery facility in Karachi.
Speaking at the same event, which he hosted, SMEDA Director and former PAPAAM chairman Mashhood Ali Khan highlighted the pivotal role of small and medium enterprises (SMEs) in Pakistan”s economy. He pointed out that SMEs employ around 25 million people and contribute approximately PKR 2.8 billion to the nation”s exports.
Mr Khan stressed that while the SME sector demonstrated remarkable resilience during the Covid-19 pandemic, timely policy support is essential to unlock its full potential. He called for consistent policies, improved access to finance, and greater export facilitation to help Pakistani SMEs compete in global markets and support economic growth.