With Pakistan’s New Energy Vehicle (NEV) Policy 2025–30 now in effect, MG Motors has urged the local auto industry to rethink its pricing strategy and adopt a more consumer-centric approach to electrification. The company criticised the limited accessibility of hybrid electric vehicles (HEVs) and advocated for a broader transition toward plug-in hybrid electric vehicles (PHEVs), which offer greater utility for urban consumers.
Speaking to the media in Lahore, Syed Asif Ahmed, General Manager of MG’s Marketing Division, welcomed the NEV Policy as a necessary development but said its benefits had yet to reach the majority of car buyers. “HEVs in Pakistan have become a luxury for a niche market,” Ahmed said. “Despite policy support, the real advantages have not trickled down to consumers.”
Ahmed pointed out that even the most basic hybrid SUVs now start at Rs 9.6 million, while larger variants exceed Rs 16 million—placing them well out of reach for average Pakistanis. He argued that the industry must “think seriously about affordability” and that automakers should shift their focus toward PHEVs, which offer a practical electric-only range for city use while maintaining hybrid capability for longer drives.
The NEV Policy, launched by the Ministry of Industries, provides formal recognition for electric, plug-in hybrid, and hydrogen-powered vehicles. However, Ahmed criticised earlier tax incentive frameworks, which he said disproportionately benefited traditional hybrids marketed under the guise of “new energy” while failing to deliver either affordability or meaningful environmental impact.
“Unfortunately, these subsidies neither helped the environment nor the people. They only benefited the principal companies and their local partners,” he said.
In contrast, he added, PHEVs represent a more meaningful solution. MG Motors claims to have introduced Pakistan’s first locally assembled PHEV SUV—the MG HS PHEV—which features a 16.6kWh lithium-ion battery offering an electric-only range of over 52 kilometres. The vehicle is priced below Rs 10 million and comes equipped with a 1.5L turbocharged engine for extended travel.
“Despite being a more advanced technology, the MG HS PHEV is priced lower than most hybrids in Pakistan,” Ahmed said. He argued that MG has set the benchmark for automotive specifications in the country, with other manufacturers now emulating the standards MG introduced in its HS lineup.
Since its entry into the Pakistani market in 2021, MG vehicles have collectively covered nearly 350 million miles, according to company figures. The HS model, in particular, has been tested for compatibility with local road conditions, climate, and fuel standards.
Ahmed also pointed out a significant pricing distortion in the market. Internationally, hybrids are typically cost-effective when their price premium does not exceed 10% compared to similar petrol vehicles. In Pakistan, however, that gap averages around 45%, he said.
“For instance, a C-segment SUV hybrid may cost up to Rs 12 million, while its petrol counterpart is priced closer to Rs 8 million,” he explained. “This Rs 4 million difference in the C SUV category undermines the financial viability of hybrids for most buyers.”
While Pakistan’s NEV Policy outlines a clear framework for encouraging electrification, industry observers say its success hinges on how automakers respond—whether by improving affordability or pursuing high-margin models under the cover of environmental incentives.
MG Motors, for its part, believes the industry must choose between continuing business as usual or embracing a new strategy that prioritizes consumer value and environmental responsibility.
“The potential is enormous,” Ahmed concluded. “But only if we prioritize real consumer value and environmental impact—over short-term profits.”
