Electric Vehicles Policy 2020-2025
13 | P a g e
stakeholders: the auto industry, auto part manufacturers, consumers, and relevant
government organizations. Policy was approved on 18th March 2016 and is active since
July 01, 2016 onwards. The Policy has achieved its desired objectives to attract
competition in the market. The ADP 2016-21 did not encompass motorcycle, rickshaws
and loaders as the existing tariff based system was continued for 2-3 wheelers.
In Pakistan, the Automotive Manufacturers are represented by Pakistan Automotive
Manufacturers Association (PAMA) whereas auto parts vendor industry is represented
by Pakistan Association of Auto Parts and Accessories Manufacturers (PAAPAM). The
auto parts manufacturers are mainly located in Karachi, Lahore and Gujranwala region
and are manufacturing broad range of products including plastic parts, automotive
batteries, vehicles interior (seat, dashboard, carpets),sheet metal parts, rubber parts,
cast and machined parts, forged parts, precision components, accessories etc.
According to PAAPAM, there are almost 3600, including 286 registered (Tier-I: 700,
Tier-II-1300, Small and Cottage Units: 1300) auto parts vendors operating in the
Pakistan’s auto parts vendor industry. Pakistan auto parts vendor industry provides
direct employment to almost 800,000 individuals. These part manufacturers will play an
important role in development of EVs in Pakistan especially in terms of common parts.
Pakistan has achieved significant localization in 2-3 wheelers and tractors. Mostly
engine parts and some critical parts which require heavy investment are being imported
while the body parts and exterior parts are being manufactured locally. The localization
of high tech parts depends upon volumes and feasibility. Motorcycle segment has
already achieved desired localization. The presence of experienced vendors for
manufacturing of common parts is an advantage for Pakistan in its shift towards EVs.
It is a fact that maintenance costs associated with changing lubricants and filters is not
associated with EVs. However, in case of EVs the battery replacement costs are high,
which is one of the major considerations by a customer while making an investment
decision. The battery costs are expected to reduce by the passage of time.