The auto industry of Pakistan has clearly opposed the new incentive awarding policies of government regarding the electric vehicles (EV’s) in the country, calling it a threat to the local auto sector.
The trend of electric vehicles is on the rise around the globe which has grabbed the interest of many investors. The environmental-friendly vehicles are supposed to be completely taking over the auto sector in a decade or so. A number of investors in Pakistan are keeping a close eye on the development of the auto industry based on electric vehicles. At such a crucial stage of the auto sector transformation, the existing auto industry has shown displeasure regarding the incentives offered by the incumbent government for electric vehicles in Pakistan. The matter of opposition has been confirmed by the Engineering Development Board (EDB) recently.
A meeting was held between the Ministry of Industries and Production and Engineering Development Board (EDB), during which the members of EDB raised their concern over providing unrestricted incentives to the electric vehicles. In their view, it’s a risky step for the auto industry and doesn’t offer any sustainable plan in the future. The EDB, however, invited proposals regarding EV’s from all the participants of the meeting. The board wants to formulate a policy framework for all the companies who are willing to bring EV’s in the market of Pakistan.
What is actually bothering the auto industry of Pakistan? As a matter of fact, all the participants claim that the only thing that separates an electric vehicle from conventional combustion engine vehicles is the battery. Rest of the parts of both types of vehicles are almost similar which should not fall under the incentives bracket. Note here that the government’s new policy for EV’s offer incentives to the whole unit of the vehicle. This decision, in particular, could leave a threatening impact on the part localization segment of the auto industry. It has the potential to turn the industry upside down with the investors importing vehicles and parts at almost no tariff. The government should clearly state the definition of EV’s, semi EV’s and hybrid vehicles before announcing any sort of incentives, said the members of the meeting.
Undoubtedly, the future is of electric vehicles. Under the current state of global warming, emissions from traditional cars become a clear and present danger to the environment. It’s time for the government to formulate a proper plan to bring electric vehicles in the country before we lose the interest of investors.
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