Prospects of new energy vehicles growing in Pakistan, said Jian Peng, Pakistan’s Honorary Investment Counselor in China, according to a report published by China Economic Net (CEN) on Friday.
The report quoting the recent data released by Pakistan Automobile Manufacturing Association (PAMA) stayed that Pakistan’s automobile sale has surged by 61.89 percent in the first five months (July-November) of this fiscal year compared to the same period of previous year.
“The purchasing power of automobiles reflects economic strength of a country. The rise in automobile sales shows the steady growth of Pakistan’s economy under the impact of epidemic,” said Jian Peng, who is also an expert on automobile industry in the Research Association of China World Trade Organization
“In the past, imported cars occupied the major part of Pakistan’s car market, but now domestically produced or domestically assembled cars are gaining popularity.” Jian Peng told CEN that as Chinese automobile brands such as SAIC MG and Forthing have established joint venture assembly plants with Pakistani partners, great progresses were made in the supporting sectors in Pakistan, like spare parts manufacture.
“The progresses have gradually reduced the cost of the vehicle production, so that Pakistani people can afford high-quality automobile products for a low price.” he added.
Recently, Zhongtong Bus provided 80 18-meter hybrid buses for the Green Line Rapid Transit Service (BRTS), Karachi’s first modern public transport project, which can handle 135,000 passenger trips per day.
“There are great cooperation potential in the new energy vehicles for China and Pakistan.” Jian Peng said.
Jian Peng believes that the development of new energy vehicles is an inevitable trend for Pakistan. “In recent years, Pakistan’s electricity supply has been greatly improved with CPEC power generation projects.
Some large cities with large population, such as Karachi, Islamabad and Lahore, have electricity redundancy now. The best way to consume these redundant electricity is to use it for new energy vehicles.”
In the Automotive Industry Development and Export Plan (AIDEP 2021-26) in the Finance Act 2021, several tax incentives have been given to electric vehicles and hybrids.
Such policies added more potential on the development of new energy vehicles in Pakistan China is quickly becoming the most affluent electric vehicle market in the world with its automakers making significant headway.
“This industry will not only changes the country’s energy structure, but also brings a lot of economic benefits and promote related infrastructure construction.
From a technical point of view, China and Pakistan can reconcile related standards, so that we can transfer technology to Pakistan.” Jian Peng suggested.
