ISLAMABAD, Dec 1 (INP): Chinese enterprises are optimistic about Pakistan’s electric motorcycle industry, according to a report published by China Economic Net (CEN) on Thursday.
Driven by market demand and favorable national policies, a growing number of Chinese electric vehicle companies have come to Pakistan to invest and start their business, and local companies have also started manufacturing electric motorcycle products.
The report stated that industry insiders are confident that electric vehicles in Pakistan will enter a phase of rapid development in the near future.
According to Muhammad Yousuf Shaikh, founder and chairman of Pakistan China Motorcycle Industry Council (PCMIC), Pakistan has produced more than 2.5 million motorcycles annually in recent years, but most of them are older models.
The electric motorcycle industry will bring changes to Pakistan’s motorcycle industry, he added.
In the spirit of sharing the significant breakthroughs of China’s new energy, Jialing Industrial Co., Ltd, China established a branch in Pakistan last month to focus on the introduction of new energy pure electric motorcycles instead of traditional fuels.
Yao Zhen, the responsible person for Jialing Pakistan told China Economic Net in a recent interview that Pakistan is a country where motorcycles are the main means of transport. Rising global oil prices have led to a sharp increase in gasoline prices in Pakistan, making it imperative for consumers to switch to new energy markets.
The price of a pure electric motorcycle is higher than that of a conventional petrol motorcycle. “However, in the long run, electric motorcycles save much more fuel cost than petrol motorcycles,” Yao added.
Currently, power shortages, incomplete charging facilities, and insufficient production of electric vehicle parts in Pakistan are major challenges facing Jialing in building a local plant.
“We plan to establish a production line of new energy motorcycles in Pakistan and gradually localize the manufacturing of parts, which requires the local power department to ensure a stable industrial power supply for manufacturers,” said Yao.
Despite the above constraints, Pakistan’s electric vehicle policy 2020-2025 has offered great advantages for enterprises planning to invest in electric vehicles in Pakistan, including 1% of import duty on special parts for electric vehicles, 0 CKD sales tax and 1% sales tax on locally manufactured and locally sold vehicles.
These provisions have greatly reduced vehicle production costs, noted Ning Fengli, operation director of Plum Qingqi.
Founded in 1995, Plum Qingqi was the first company from the Chinese motorcycle industry to invest in Pakistan. The company is mainly involved in the production and sales of two – and three-wheeled motorcycles and has also launched electric vehicles in recent years.
Both companies are highly optimistic about the prospects of electric motorcycles in Pakistan. Yao stressed that market demand led by new energy sources such as pure electricity, hydrogen energy and other high-tech sources will be the trend globally.
