Karachi:
Despite the economic slowdown and political instability, the sales of electric motorbikes increased in 2024 and is expected to increase manifold in 2025, if the upcoming New Energy Vehicle (NEV) policy is adopted by all stakeholders such as investors, For assemblers, parts vendors and customers, the lack of plugs streamlines the cumbersome registration process and maintains EV standards.
The localization of parts, which is inevitable, is being delayed inordinately due to the finalization work on some successful models of electric motorbikes.
Locals are anticipating the newest and latest models as China rapidly develops a series of modern and comfortable electric bikes. Some durable models of electric motorcycles will take two to three years to finalize.
The Engineering Development Board (EDB) should ditch the tedious six-month process of approving the latest EV models and adopt a simpler and quicker procedure.
The gradual penetration of e-bikes continues as around 50,000 electric scooters were manufactured and sold in FY 2023-24, while only 15,000 units were assembled and sold during 2022-23.
Yasir Hussain, founder and director of the Climate Action Center, said that due to the prevalence of poor air quality, 100% NEV motorcycles, including electric, retrofitted and hybrid, will gradually replace gasoline motorcycles to reduce pollution. to ensure a pollution-free environment, reduce health hazards and provide a cheaper means of transportation. .
He said that the government is going to introduce NEV Policy 2025 offering attractive incentives to both NEV industries and end users. Bank financing schemes will be unveiled for assemblers and buyers to set up plant and buy motorbikes at zero interest rates respectively. Government can also give handsome subsidy on e-bikes to encourage motorcyclists.
Hussain called for setting up a complete mechanism for recycling of motorcycle batteries along with curbing environmental pollution.
Muhammad Salman Tanveer, managing director of Yadia Pakistan, said that graphene batteries should be included in the NEV policy 2025 as it is a proven, affordable technology that can be recycled. It is a successful technology of 2024 but some motorcycle companies are promoting that lithium batteries are better than graphene batteries.
In Sri Lanka, Nepal and Bangladesh, graphene batteries are gaining popularity due to their low cost, near-perfect conductor of electricity, fast charging, dramatically lower heat generation and energy density. Mass adoption of e-bikes is possible with this battery technology, if the government provides support.
The government should provide a significant subsidy to promote EVs and replace fuel-powered motorcycles with eco-friendly bikes.
“Nowadays, many assemblers are entering this emerging industry but they don’t focus on quality while some are working without proper quality, which doesn’t look good,” said Tanveer.
The EDB should develop a strategy and lay down clear guidelines to prevent the accumulation of such motorbikes, which may discourage avid riders who intend to switch to EVs.
“EVs saw significant growth last year (2024), while sales are expected to double this year due to good customer feedback,” Tanveer said.
“At the same time, inflation is coming down and foreign exchange reserves are increasing due to better economic indicators. The government should set a negligible fee or offer free registration of e-bikes and fuel registration. The fee should be increased.” Biking to reduce oil import bill,” he added.
According to auto sector analyst Muhammad Sabir Shaikh, unless the government succeeds in formulating a useful policy and rules, facilitating assemblers, parts vendors and investors and giving incentives to riders, the general public will not be more into EVs. Will not be interested.
Investors and end users are afraid to invest and buy e-bikes due to vague and uncertain policy. If a policy is made, it should be implemented properly, otherwise people will flout the rules. Additionally, consumers are uncertain about the resale value of EVs.
“Government can play an important role in clearing confusion with a practical strategy,” Sheikh remarked.
China introduced strict laws with attractive incentives to promote EVs in the early stages and now 60% of e-bikes are on the road. In addition, 40% of China’s rural and poor areas will be able to adopt electric bikes within two to three years.
The government of Pakistan should stop “demanding speed money or deductions” during vehicle registration and take strict action against corrupt officials. The registration process should not be a tall order and authorized dealers should be empowered to register customer bikes online without any hassle.
“Apart from kickbacks and bribes, the registration process consists of 1% of the original price of the bike, Rs 1,650 for the smart card and Rs 1,850 for the number plate. These are unfair charges,” Sheikh said. said
Opportunities in Pakistan include local assembly, affordable EVs, infrastructure development and trade incentives, according to a presentation by The Bank of Punjab President and CEO Zafar Masood at a recent conference.
As far as environmental factors are concerned, severe urban air pollution highlights the need for clean transport in line with Pakistan’s commitment to the Paris Agreement.
Economic benefits include reduction in fuel import cost, better payment for consumers, local assembly and charging network, job creation, EV policy targeting 30% penetration by 2030, lower cost imports for consumers and manufacturers. Includes duty reduction and tax exemptions.
The target segments for two, three and four wheelers are the large youth population and the urban population.
Still, the EV sector faces challenges including uncertainty about resale value, limited battery warranty and useful life, localization of components, high cost and depreciation, lack of government support, high interest rates, project Includes financing, charging stations, economic and geopolitical scenarios. , policy and poor road infrastructure.