As the South Asian nation strives for long-term mass adoption of electric vehicles (EVs). Officials at the Engineering Development Board of the Ministry of Industries and Production said. This week that at least six companies in Pakistan are producing or assembling electric bikes. While the licenses have been issued to 31 companies.
The ‘Electric Vehicle Policy 2020-25,’ which was approved in 2019. Provides incentives and tax exemptions to encourage local manufacturing of electric vehicles. With the goal of seeing electric vehicles account for 30% of all passenger vehicle. The heavy duty truck sales by 2030 and 90% by 2040. Additionally, it sets high targets for two-, three-, and four-wheeled vehicles as well as buses. Calling for 50% of new sales by 2030 and 90% by 2040.
Fifth Largest Motorcycle Market
China, India, Indonesia, and Vietnam are the top four bike markets in the world. With Pakistan coming in at number five. South Asian nation strives for long-term mass adoption of electric vehicles. In the nation of over 240 million people. There are about 23 million registered bikes. And the transportation industry is in charge of 30% of the nation’s overall carbon emissions. Studies show that most motorcycles emit more smog and air pollution than do cars. Three million people are directly and indirectly employed by Pakistan’s automotive sector. Which also brings in about Rs 100 billion a year for the government coffers.
Ministry of Industry & Production
According to Asim Ayaz, General-Manager (Policy) at the Engineering Development Board of the Ministry of Industries and Production. We have so far issued licences to 31 companies for local manufacturing of electric bikes. And they all have been gradually starting the production. He added that at least six companies were currently either manufacturing or assembling motorbikes of various variants. One percent customs charge on the import of batteries, motors, and drivetrains. Replacing engines and gears for electric bikes is offered as a tax incentive under the EV policy. As opposed to a 15 percent customs duty on non-EV items. For a period of five years, the general sales tax for two- and three-wheelers has been set at one percent. With registration and the yearly token tax exemptions.
Electric Vehicle Policy
The federal government of Pakistan approved the EV Policy 2020–25 in 2019. It marks a significant turning point in the country’s transition to sustainable transportation. A variety of tax breaks and incentives are included in the programme. In an effort to encourage investment in a electric vehicle production. The purpose of these incentives is to increase the general public’s access to and affordability of EVs.
The strategy sets lofty goals. It hopes to boost the number of new electric motorbikes by 50% and the number of new electric three-wheelers. By an astounding 90% by the years 2030 and 2040, respectively. Reducing greenhouse gas emissions is one of the main objectives since it will help Pakistan’s efforts to tackle climate change.
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