- Web Desk
Pakistan grants licenses to 31 companies for local electric motorbikes manufacturing
- Web Desk
- Oct 08, 2023
ISLAMABAD: At least six companies in Pakistan are currently manufacturing or assembling electric motorbikes, according to officials from the Engineering Development Board of the Ministry of Industries and Production.
According to media reports, the country, aiming for widespread adoption of electric vehicles (EVs), has issued licenses to 31 companies under the ‘Electric Vehicle Policy 2020-25,’ offering incentives to boost local manufacturing.
The policy, approved in 2019, envisions electric vehicles capturing 30 per cent of all passenger vehicle and heavy-duty truck sales by 2030 and 90 per cent by 2040. Ambitious targets have been set for two- and three-wheelers and buses, with a goal of 50 per cent of new sales by 2030 and 90 per cent by 2040.
As per the media reports, Pakistan, the world’s fifth-largest motorcycle market, faces significant air pollution challenges due to its 23 million registered motorbikes.
The transport sector, responsible for 30 per cent of total carbon emissions, is a key contributor. To address this, tax incentives, including reduced customs duties and sales tax exemptions, have been introduced under the EV policy to encourage local manufacturing.
Meanwhile, a Lahore-based company Zyp Technologies is actively contributing to the mass-market adoption of electric mobility. The company recently secured $1.2 million in funding for its battery-swapping electric motorbikes in Pakistan, aiming for an annual production capacity of 8,000 units.
Zyp Technologies plans to set up 60 battery swap stations in Lahore by next year, expanding to 4,000 stations across Pakistan in five years.
Another notable player, Pakzon, reports increased sales this year, citing record hikes in petroleum prices. Offering motorbikes with two battery options, lithium phosphate and dry gel, Pakzon emphasises reduced fuel costs, zero noise and air pollution, and almost zero maintenance costs associated with electric motorbikes.
Despite the positive strides, challenges remain, including the high upfront cost of EVs, range anxiety, and the need for a robust charging infrastructure. Industry experts emphasise the importance of addressing these challenges to accelerate the adoption of EVs in Pakistan.