Pakistan’s automobile industry is entering a new era as multi-billion-dollar investments flow into the electric vehicle (EV) sector.
According to sources, the Auto Policy 2021-26 has opened new avenues for investment, production, and exports, attracting leading international brands to establish manufacturing plants in the country.
Global auto giants, including Hyundai, MG, and Changan, are shifting their focus toward electric technology in Pakistan. The sector already contributes around 7 percent to the national economy, with a consistent upward trend in exports. Industry insiders believe that sustained policies have instilled confidence in global players regarding Pakistan’s market potential.
Chinese electric vehicle leader BYD has announced plans to set up a production plant in Karachi. The facility is expected to commence operations in 2026, with an annual production capacity of 25,000 vehicles. BYD aims to capture 30 to 35 percent of Pakistan’s EV market share, while experts predict that by 2030, nearly 30 percent of vehicles in the country could be electric.
Government initiatives are further accelerating the transition, including a 45 percent reduction in charging tariffs for EVs. Market analysts project that the size of Pakistan’s EV market could triple or quadruple by 2025. In parallel, Pakistan’s export sector has recorded significant achievements, including the export of over 10,000 cars in 2023, marking a 20 percent increase compared to the previous year.
The country is also making strides in related industries. Master Changan made history by exporting cars from Pakistan for the first time. Annual tractor exports to Central Asia and African nations now stand at $40 to $50 million, while battery exports have reached $30 million. Additionally, Pakistan has exported 800,000 tons of raw iron for the first time, and discussions with Russia are underway for the revival of steel mills to enable finished steel exports.