EV motorbike industry seeks govt support to boost growth, localisation

Local assemblers and dealers of electric vehicle (EV) motorbikes have called on the federal government and the Engineering Development Board (EDB) to include their charter of demands in the upcoming New Energy Vehicle (NEV) policy. 

According to media reports, the key demands include tax exemptions, free registration for customers, financing options, and industry support for localisation to reduce costs and stimulate growth in Pakistan’s emerging NEV sector.

The industry has urged the EDB to allow zero or 1% import duties on Completely Knocked Down (CKD) units and eliminate taxes ranging from 1% to 40% on various bike parts. Free registration and easy financing options are also critical to making EVs more accessible to local consumers. Stakeholders, including the EDB, Ministry of Industries and Production, and associations, must collaborate to support the industry’s growth.

According to the Pakistan Electric Vehicle Association (PEVA), about 40 EV motorbike brands with original designs have been launched in the country, with sales currently at 3,000 units per month. 

The government has set an ambitious target to increase the share of EV bikes to 30%, with annual sales reaching 500,000 units by 2028.

At present, Pakistani consumers pay approximately Rs240,000 for gasoline-powered 125cc bikes and Rs550,000 for 150cc motorcycles. These bikes often lack modern features and comfort compared to EV options available worldwide. With the right incentives, consumers are likely to switch to NEVs, despite challenges such as poor resale value and a limited network of dealers and mechanics.

To foster growth and improve sales, industry players are requesting that duties on all NEV components be reduced to zero or 1%, while the current 1% General Sales Tax (GST) on sales and 18% GST on imports be eliminated. Reducing these taxes could lower prices and facilitate consumer adoption.

Sources indicate that the EDB has shortlisted 10 NEV assemblers to supply 40,000 units, which will be made available to customers at subsidised rates through an e-portal.