Pakistan’s New NEV Policy 2025–30 Unveiled: MG Motors Urges Focus on Affordability and Real Value
LAHORE: Pakistan has launched its much-anticipated New Energy Vehicle (NEV) Policy 2025–30, aimed at cutting emissions and reducing reliance on imported fuels. But auto industry leaders are urging a rethink on pricing strategies to make these technologies truly accessible to everyday consumers.
Speaking to media in Lahore, Syed Asif Ahmed, General Manager of Marketing at MG Motors, welcomed the policy but raised concerns about the affordability of Hybrid Electric Vehicles (HEVs) in Pakistan.
“HEVs have become a luxury item,” said Ahmed. “Despite supportive policies, the real benefits haven’t reached the average Pakistani buyer.”
HEVs vs. PHEVs: Time to Rethink the Strategy?
Ahmed pointed out that some HEV SUVs in Pakistan are priced as high as Rs. 16 million, while five-seater options fall in the Rs. 9.6 to 12 million range. These price points, he argues, put hybrids out of reach for most buyers.
Instead, he urged the industry to consider Plug-in Hybrid Electric Vehicles (PHEVs), which are ideal for urban driving with the added flexibility of hybrid engines for longer trips—effectively addressing range anxiety, a common concern with fully electric vehicles.
MG HS PHEV: Pakistan’s First Locally Assembled Plug-In Hybrid
MG Motors has taken the lead by launching Pakistan’s first locally assembled PHEV SUV, the MG HS PHEV. With a 16.6kWh battery, it delivers over 52 km of electric-only range and combines that with a 1.5L turbocharged engine, producing 260 HP and 370 Nm torque. The vehicle accelerates from 0–100 km/h in just 7.1 seconds.
Best of all? It’s priced under Rs. 10 million, making it one of the most cost-effective options in its category.
“It’s the best value-for-money SUV in Pakistan today,” Ahmed emphasized. “You get cutting-edge technology, fuel savings, and top-tier performance.”
Sales Growth Shows PHEV Potential
MG Motors has already sold over 16,000 vehicles in Pakistan, including around 2,000 PHEVs. According to Ahmed, more customers are now recognizing the economic benefits of PHEVs for urban mobility.
However, he added that the MG HS PHEV remains the only plug-in hybrid option available in the local market, despite growing demand.
Pricing Gaps Remain a Major Concern
Ahmed highlighted a key issue: hybrids in Pakistan are significantly overpriced when compared to their petrol counterparts. Globally, a hybrid vehicle typically costs no more than 10% more than a petrol version.
But in Pakistan, this gap can be as wide as 45%. For example, a C-segment SUV hybrid may cost up to Rs. 12 million, while a similar petrol SUV costs around Rs. 8 million.
“This pricing model is unsustainable and discourages adoption,” he said. “The gap should be closer to global norms if we want widespread uptake.”
NEV Policy Offers Hope — But Execution Is Crucial
The NEV Policy 2025–30, introduced by the Ministry of Industries, formally classifies EVs, PHEVs, and hydrogen-powered vehicles as “New Energy Vehicles,” aligning Pakistan with international standards.
While the policy lays a solid foundation, Ahmed warned that real progress depends on how automakers implement these incentives. Past policies often benefited only major manufacturers, with minimal trickle-down effect for consumers or the environment.
“This time, the industry has a chance to do things differently,” he concluded. “Prioritize consumer value, affordability, and environmental impact—not just profits.”
What’s Next for Pakistan’s EV and PHEV Market?
With MG already paving the way, more PHEV models are expected to hit the Pakistani market soon. Whether automakers will use the new NEV policy to lower costs and expand access, or repeat the old pattern of high prices and limited availability, remains to be seen.
