Electric motorbike sales in Pakistan have risen significantly in 2024, with projections indicating continued growth in 2025. However, experts stress that the success of this growth hinges on the government’s upcoming New Energy Vehicle (NEV) policy, which must address the needs of investors, assemblers, parts vendors, and customers. Additionally, the policy should streamline the registration process and ensure the quality of EVs.
Local production of e-bike parts has faced delays due to the ongoing development of durable electric bike models. While consumers are eager to explore the latest options, especially as China introduces more advanced models, local manufacturers may need two to three years to finalize durable models for widespread adoption. Industry insiders are calling for the Engineering Development Board (EDB) to speed up the approval process, as the current six-month waiting period is seen as a bottleneck.
In the financial year 2023-24, 50,000 electric scooters were sold, a significant increase from 15,000 the previous year. This rise in sales marks a step forward for electric bikes in Pakistan’s transportation sector, with demand expected to continue growing as consumers become more aware of their environmental benefits and lower costs.
Yasir Husain, founder and director of the Climate Action Centre, emphasized that electric motorbikes, including fully electric, retrofitted, and hybrid models, will gradually replace gasoline-powered motorcycles. “The 100% NEV motorbikes will not only ensure a pollution-free environment but will also offer a cheaper alternative for transportation,” he said, highlighting the dual benefits of EV adoption.
The government is preparing the NEV Policy 2025, which is expected to offer incentives to both the electric vehicle industry and consumers. Financing schemes with zero-interest rates and subsidies for electric bikes are part of the initiative. Husain also stressed the importance of developing a robust battery recycling system to prevent additional environmental pollution.
Muhammad Salman Tanveer, managing director of Yadea Pakistan, raised concerns about battery technology in electric motorbikes. He advocated for the inclusion of Graphene batteries in the NEV policy, citing their advantages over lithium batteries, such as lower cost, faster charging, and better energy density.
“Graphene batteries are a tested and affordable technology that can be recycled, offering faster charging, better energy density, and a more efficient power source for e-bikes.”
He also noted the need for quality control, as many new players in the electric bike market are not adhering to proper standards.
“Many assemblers are entering the market without adhering to proper standards, which could discourage potential customers from making the switch to EVs.”
Tanveer expressed optimism about the market, citing positive consumer feedback.
“A significant growth in EVs was witnessed last year, and this year sales are expected to double.”
He also suggested that the government should offer free or low-cost registration for electric bikes and increase registration fees for fuel-driven motorcycles to reduce the oil import bill.
Despite growing interest in electric vehicles, uncertainty about policy and government support remains a major barrier. Muhammad Sabir Shaikh, an auto sector analyst, pointed out that the lack of a clear and consistent policy leaves both investors and consumers uncertain about the future of the market.
“Until the government formulates a clear policy and implements it consistently, common people will not show much interest in EVs.”
Shaikh suggested that the government could take a more proactive role in creating a clear strategy. He pointed to China’s success in promoting electric vehicles, where strict regulations and attractive incentives boosted EV adoption.
“In China, 60% of e-bikes are now on the road, and 40% of rural areas are expected to adopt electric bikes within two to three years.”
The vehicle registration process also needs improvement. Shaikh criticized the demand for bribes and additional fees, which adds to the financial burden on consumers and hampers EV adoption.
“The government must take stern action against corrupt officials and make the registration process simpler and more transparent.”
Zafar Masud, president and CEO of The Bank of Punjab, expressed a positive outlook for the electric vehicle industry, citing opportunities in local assembly, infrastructure development, and trade incentives. He emphasized that cleaner transport solutions align with Pakistan’s commitment to the Paris Agreement and noted the economic benefits of EV adoption, including reduced fuel imports and job creation.
“The government’s goal of achieving 30% EV penetration by 2030 could be within reach, provided that the right policies and incentives are put in place.”
Despite the opportunities, challenges remain, such as high upfront costs, limited battery warranties, poor road infrastructure, and the need for better government support. With the right mix of incentives, clear regulations, and public-private collaboration, Pakistan’s electric vehicle industry is poised for significant growth in the coming years.
