Pakistan is set to introduce its first fully homegrown electric vehicle by June or July 2026 at a price below Rs1 million, marking a historic milestone for the domestic auto industry. Hamad Ali Mansoor, CEO of the Engineering Development Board, announced the initiative during an Iftaar dinner hosted by Mashood Khan, Director of the Small and Medium Enterprises Development Authority, in Karachi. The vehicle, manufactured at a new plant in Lahore, is designed to provide a range of up to 180 kilometres on a single charge, offering a practical solution for daily commuters and an affordable pathway for two-wheeler owners to transition to four-wheel vehicles. Mansoor highlighted that the introduction of this EV aligns with broader government efforts to support locally assembled vehicles through tax incentives outlined in the upcoming federal budget for the financial year 2026-27.
The launch of a locally manufactured electric vehicle signals a significant shift in Pakistan’s automotive sector, which has long been dominated by a few major companies. Mansoor emphasized that two to three additional firms have already expressed interest in entering the EV market, which could foster competition, innovation, and greater affordability for consumers. Under the upcoming Auto Policy, Prime Minister Shehbaz Sharif has pledged full support for the local auto industry, reinforcing the government’s commitment to industrial self-reliance and technological development. Plans are also underway to export ‘Made in Pakistan’ vehicles to international markets, with Rs100 billion allocated in export incentives to boost global competitiveness.
The initiative also includes measures to promote green mobility across the country, with subsidies for e-bikes and e-rickshaws designed to expand access to electric transport for the broader population. Mashood Khan underscored the role of small and medium enterprises in driving Pakistan’s economic future, noting that SMEs employ nearly 25 million people and contribute approximately Rs2.8 billion in exports annually. Strengthening the SME sector, he argued, could generate sustainable employment, foster economic growth, and enhance Pakistan’s presence in global markets. The success of the homegrown electric vehicle is seen as a step toward modernizing the transportation sector while simultaneously supporting local entrepreneurs and manufacturers.
With the first locally manufactured EV expected on roads by mid-2026, the government’s focus on affordability, incentives, and industry support aims to accelerate the adoption of electric vehicles in Pakistan. By reducing dependence on imported vehicles and promoting domestic production, officials hope to cultivate a competitive and sustainable automotive ecosystem. This landmark development, coupled with policy consistency and financial support, may reshape consumer choices and encourage a shift toward environmentally friendly transportation solutions, while positioning Pakistan as an emerging player in the electric vehicle market in South Asia.
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