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Sunday, April 14, 2024

Toyota to invest $100mn in Hybrid Electric Vehicles in Pakistan

In a huge step towards the modernization and promotion of electric vehicles in Pakistan, Indus Motor Company Limited (IMC) has announced an investment of USD100 million over the next 3 years in the local production of Hybrid Electric Vehicles in Pakistan.

In a huge step towards the electrification of vehicles in Pakistan, Indus Motors Company Limited has announced that it is going to be investing in Hybrid Electric Vehicles in Pakistan.

In a notification to Pakistan Stock Exchange, the company wrote, “We are pleased to announce that, based on the incentives provided against certain taxes, duties as announced by the Government of Pakistan through Finance Act 2021, and subsequent Statutory Regulatory Orders (SROs), the company has evaluated and plans to invest an estimated aggregate amount of $100 million, over the next 3 years, for the local production of Hybrid Electric Vehicle (HEV) in Pakistan.”

According to the announcement, the investment shall go towards plant upgradation and extension, localization of parts or components, and production preparation or assembling of HEVs.

The production by the company shall be done in Port Qasim Authority, Karachi.

E-vehicle registration launched

Sindh Excise Minister Mukesh Kumar on Tuesday announced that the registration of electric vehicles and motorcycles has started.

The decision has been taken keeping in view the increasing demand from people buying electric vehicles and motorcycles, as these customers have been facing difficulties due to the delay in the registration process.

Read More: Why is Pakistan so slow to adopt to Electric Cars?

Electric Vehicles (EVs) have already attracted the interest of large populations worldwide, and the Pakistani public is also excited about the prospect.

The Government of Pakistan in December 2020 had approved the country’s first e-vehicle policy and announced the incentives to attract investment.

Special Assistant to the Prime Minister on Climate Change Malik Amin Aslam in June said the most-awaited electric cars would be launched in Pakistan by the end-2021 under Electric Vehicle (EV) policy.

He said it would help boost the economy, reduce pollution levels, and generate employment opportunities in the country.

The special assistant said Pakistan had already introduced electric motorcycles and rickshaws in a bid to reduce carbon emissions in line with its ‘Green Pakistan’ campaign.

HEVs and EVs in Pakistan

However, EVs are very expensive for the Pakistani public, especially the long-range ones. The e-Tron currently costs PKR 16.2 million in Pakistan, which is a huge cost with the current infrastructure. However, MG ZS EV and other companies in Pakistan are planning to introduce new cars in Pakistan, apparently the lower prices.

Although electric vehicles seem like the goal, the charging infrastructure and electricity transmission and supply issues are a big hurdle, the local industry is urging the government to work towards other alternatives too, like hybrid electric vehicles (HEVs).

With first-world still facing infrastructural accessibility issues, the feasibility of the EVs to be a mass accessible product is very low. Thus, the industry reportedly is supporting a policy for HEVs with better enthusiasm.

It must be remembered that MG had announced its Plug-in-Hybrid for Pakistan earlier this year. This kind of vehicle is arguably better as it has a higher range and does not limit the cars to main cities where the infrastructure is present, and the car uses electricity and fuel to increase range.

Read More: Gandhara Nissan to launch electric cars in Pakistan within the next three years

With the current rates of electricity in Pakistan, HEV is the best option. According to the argument being made, it costs less than EVs and internal combustion engines for Pakistan.