The electric vehicle (EV) industry in Pakistan has vanished into thin air as a result of the country’s economy’s recent downturn.
EVs are environmentally advantageous and could lower the nation’s dependence on imported oil, which makes up a significant portion of its import costs, according to Engineer Asim Ayaz, Engineering Development Board’s (EDB) Policy Manager, who spoke to WealthPK.
12 out of 21 businesses have been granted licences by EDB to produce and assemble EVs in Pakistan. Ayaz emphasised that Pakistan currently has a very low adoption rate for EVs, which is 2.2% for two- and three-wheelers and 0% for four-wheelers.
He also mentioned that MG and the DICE Foundation were applying for a permit to produce electric vehicles in Pakistan.
Dr. Junaid Alam Memon, director of the Centre for Business and Economic Research at the Institute of Business Administration (IBA), noted that Pakistanis are unaware of the advantages of EVs.
Memon advocated for EV production in Pakistan, claiming that it is feasible to implement the national EV policy because EVs are simpler to make, contain fewer parts, and need fewer workers on the assembly line. They are less expensive and require less upkeep.
Although Memon’s assertion is mostly accurate, he leaves out a vital piece of information. Due to the high cost of developing electric motors, chassis, and batteries, current EVs are by design extremely expensive to produce.
EVs’ case is also weakened by the fact that they currently do not last as long as a typical fuel-powered vehicle. Internal combustion engine (ICE) vehicles typically survive up to 15 years, whereas electric vehicles (EVs) only last up to ten years.
An EV requires a costly and labor-intensive battery replacement at the end of its useful life. An ICE vehicle is much simpler and less expensive to restore.
An EV requires more effort to recharge than an ICE vehicle does to refuel.
The quickest time for an EV to recharge has been measured at 15 minutes. The EV in question was a Premium, very pricey EV called a Lucid Air.
In contrast, a typical ICE car only needs to refuel for about 5 minutes. If you were to consider charging your EV at home, you would need a proper, reasonably expensive charging arrangement because it can take up to 12 hours to fully recharge a vehicle.
China has partially addressed the issue of development costs, but it is important to note that this was made possible by production-related economies of scale.
Automakers must totally localise the production of EVs before they can be sold at a reasonable price in Pakistan, and they must also establish a genuine need for them to drive sales. That seems implausible given the state of the economy today.