Chinese electric vehicle (EV) makers are shaking up Pakistan’s automotive sector, challenging the long-standing dominance of Japanese and local players. In the face of economic challenges and climate concerns, the country’s pivot to EVs marks both an important industrial shift and a strategic political move.
In just the past year or so, Pakistan has seen a surge of Chinese EVs. Popular Chinese brands like BAIC, Changan Automobile, JAC Motors, Great Wall Motors (GWM), MG, FAW, and Chery are gaining traction, with some entering joint ventures to manufacture locally.
The recent surge of Chinese automotive companies presents a particular challenge to legacy brands like Toyota that are now battling to refresh their line-up with comparably affordable cars.
This trend is likely to accelerate in the months ahead as U.S. tariffs on China, introduced under President Donald Trump, push Chinese EV makers to seek alternative markets like Pakistan.
Chinese EVs Make an Entry
Although total auto sales in Pakistan declined by 8% last year—largely due to a 67% drop in tractor sales—passenger car sales rose by 17%, and truck sales surged by 67%, according to AKD Securities in Karachi. This growth comes amid a rising wave of Chinese EV imports, which is intensifying competition for established automakers like Toyota, Honda, and Suzuki.
In 2024, Chinese EV giant BYD partnered with Pakistan’s leading private power producer to build a local assembly plant, aiming to launch three EV models by 2026. Meanwhile, Sazgar Engineering’s collaboration with Great Wall Motors (GWM) to introduce the ORA 3 EV highlights the sector’s growing momentum.
Zubair Faisal Abbasi, a development policy advisor in Islamabad, noted that demand for electric mobility remains largely unmet, but not necessarily the four-wheeled kind. 70% of electric vehicles on the road today in Pakistan are two-wheel scooters, not cars.
And a lot more are on the way, particularly Chinese brands, according to Abbasi. “Earlier this year, the government issued 57 manufacturing licenses—55 of them were for two-wheelers,” he said.
Chinese scooters like Yadea and Road Prince with swappable battery systems have become a huge hit.
The market for low-cost Chinese EVs in Pakistan remains largely untapped, Abassi explained in a recent interview. With most foreign brands priced out of reach of the average consumer, he said, Chinese electric vehicles, being more affordable—are well-positioned to fill this gap.
In response, the Pakistani government plans to establish dedicated EV production zones and manufacturing facilities in each province, including the capital, Islamabad.
Policy Backing and Strategic Intent
As part of its climate commitments under the Paris Agreement, Pakistan is pushing to expand electric vehicle adoption. The country’s New Energy Vehicle (NEV) policy for 2025–2030 targets 30% of all vehicles to be electric by 2030, rising to 90% by 2040. To support this transition, the government is offering incentives such as tax breaks, reduced import duties, and green financing.
Also, there is potential to turn Pakistan into a manufacturing base, eventually exporting to other populous countries like Sri Lanka or Bangladesh. Islamabad aims to export EVs to emerging markets in Central Asia and the Middle East, though balancing foreign investment with support for local players remains a challenge.
Pakistan also has the potential to become a regional automotive manufacturing hub, with an eye toward exporting vehicles to other densely populated markets in South Asia, namely Sri Lanka and Bangladesh. The government is also targeting emerging markets in Central Asia and the Middle East. However, the government must be careful, though, not to lure too much foreign investment into the auto sector, so that it places undue hardships on legacy companies in the market.
Hurdles and Hope
High upfront costs remain one of the biggest barriers to EV adoption in Pakistan. While Chinese EVs are often more affordable than other options, they are still out of reach for most ordinary consumers. Expanding access will require targeted financing and subsidy programs.
Meanwhile, despite having surplus generation capacity, Pakistan’s power grid continues to face periodic shortfalls. Expanding fast-charging infrastructure is essential. To that end, BYD Pakistan is working with oil marketing companies to install 20–30 fast chargers across major cities.
But cost and electricity aside, the biggest obstacle is that consumers still don’t know very much about electric vehicles and scooters. And combined with the fact that after-sales service for EVs is still at a nascent stage, it may prove very difficult for the government to surpass its goal of 30% market share for EVs by 2030.
Naeem Haroon, CEO of a company in Pakistan’s main commercial hub Karachi, isn’t discouraged by the challenges of being an early EV adopter. Haroon recently bought a new BYD, attracted to the brand’s stylish designs and lower maintenance costs that come with owning an electric car.
“Pakistan’s EV charging infrastructure is still in its early stages. Many potential buyers are deterred by limited charging infrastructure, high upfront costs, and misconceptions about EV performance, battery life, and maintenance costs,” Haroon said.
He said those concerns, while legitimate, are more than offset by the savings he gets from lower fuel costs and much less maintenance on a car without an internal combustion engine. And the fact that these are Chinese-made cars is even better. “The growing partnership between Pakistan and China in the automotive sector will drive innovation,” Haroon explained.
Sabena Siddiqi is an independent journalist based in Karachi.
