By Ahsan Mughal
KARACHI: Significant relief for Pakistan’s auto sector is expected in the upcoming federal budget, with reductions in taxes likely to make hybrid, electric, and fuel-powered vehicles more affordable.
Officials say car prices could fall by as much as Rs2.5 million, signalling the gradual end of the dominance of large automobile companies.
Speaking during an iftar dinner, Engineering Development Board CEO Hamad Mansoor said a fully electric “Made in Pakistan” vehicle is expected to enter the market by June this year, with prices potentially dropping below Rs1 million due to local manufacturing.
Production of lithium batteries is set to begin domestically, with the first factory operational by May and a second by September. Around 74% of battery components will be produced locally, significantly reducing costs. Electric vehicles will be capable of travelling up to 180 kilometres on a single charge, with some models reaching ranges of up to 1,200 kilometres, allowing travel from Islamabad to Karachi on a single charge.
The government’s PAVE programme, which currently provides 40,000 motorcycles and rickshaws on subsidy, is expected to include electric vehicles as well. Officials say the new auto policy emphasises localisation, fostering competition, boosting exports, and reducing reliance on imports.
Under the policy, a vehicle assembly plant will be set up in Lahore, while a battery manufacturing facility is planned for Karachi. Motorcycle prices are also expected to drop significantly over the next two years.
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