Pakistan’s Auto Industry Embraces Electric Vehicles with Record Investments
Pakistan’s automobile sector is witnessing a major transformation as multi-billion-dollar investments pour into the electric vehicle (EV) market.
New Auto Policy Attracts Global Brands
The Auto Policy 2021-26 has opened fresh opportunities for investment, production, and exports, encouraging leading international automakers to set up manufacturing plants in Pakistan.
Renowned global players like Hyundai, MG, and Changan are now shifting their focus toward electric mobility in the country. Currently, the auto industry contributes nearly 7% to Pakistan’s economy, and with exports steadily rising, experts say consistent policies have boosted investor confidence in the local market.
BYD to Launch EV Plant in Karachi
Chinese EV giant BYD has announced plans to establish a large-scale production plant in Karachi, expected to begin operations in 2026. The facility will have the capacity to produce 25,000 electric vehicles annually.
BYD is targeting a 30–35% market share in Pakistan’s EV sector, while analysts predict that by 2030, around 30% of vehicles in the country could be electric.
Government Support Boosts Growth
To accelerate adoption, the government has already introduced a 45% reduction in EV charging tariffs, making the shift toward electric technology more affordable for consumers. Market experts forecast that Pakistan’s EV market could triple or even quadruple by 2025.
Growing Export Achievements
Pakistan’s auto exports are also gaining momentum. In 2023, the country exported more than 10,000 cars, marking a 20% increase from the previous year.
Other milestones include:
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Master Changan becoming the first company to export cars from Pakistan.
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Tractor exports to Central Asia and Africa reaching $40–50 million annually.
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Battery exports crossing $30 million.
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Pakistan exporting 800,000 tons of raw iron for the first time.
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Ongoing talks with Russia to revive steel mills for finished steel exports.
A New Era for Pakistan’s Auto Industry
With foreign investments, supportive government initiatives, and rising exports, Pakistan is set to emerge as a regional hub for electric vehicles and related industries.
