An electric car, also known as a battery-electric car, is a vehicle that is propelled by one or more electric motors that use energy stored in batteries. Compare to internal combustion engine (ICE) vehicles, Electric vehicles are quieter, haven’t any exhaust emissions, and emit much less overall pollution. As of 2020, the total cost of ownership of recent electric vehicles is less than that of equivalent ICE cars in the United States and the European Union, owing to lower fueling and maintenance costs. Charging an electric car can be done at a variety of charging stations, which can be installed in both private homes and public areas.
The lack of interest is attributed to a limited market for such vehicles, according to the Industries Ministry.
Because the country has a limited market for such environmentally-friendly vehicles, Pakistan has yet to receive a positive response from electric vehicle manufacturers.
The Ministry of Industries and Production recently told the discussion board that Pakistan had failed to attract interest in electric vehicle manufacturers in a cabinet meeting.
It was stated that the government had officially stated a very appealing electric vehicle policy, but manufacturers showed no interest due to the limited market for such vehicles.
In December 2020, the current government approved an electric vehicle policy that included tax breaks for locally-produced- produced electric vehicles and encouraged the use of hybrid vehicles.
During the meeting, cabinet members emphasized the importance of generating interest in the production of electric vehicles.
They also emphasized the importance of using locally produced auto parts. It was urged that Original Equipment Manufacturers (OEMs) be encouraged and assisted in the production of automobile engines in Pakistan.
To pique the interest of OEMs in engine manufacturing, the minister of industries and production suggested that car production increase to at least 500,000 units, up from the current outcome of around 250,000 units.
Cabinet members believe that Chinese OEMs could be approached about establishing engine production plants in Pakistan.
The Prime Minister’s Adviser on Commerce and Investment recommended that no new licenses be issued because the country already had 15 makers and that no new vehicle models be permitted.
“There should be no rollback, and the duty framework for the automobile sector should be reviewed,” he stated emphatically.
The secretary of industries and production did a speech on the Automobile Industry Improvement and Export Policy (AIDEP) 2021-26, outlining its main features.
The Ministry of Industries emphasized that healthy large-scale manufacturing (LSM) sector growth necessitated long-term industrial growth initiatives and that the government had prioritized the auto sector as the mother of all industries.
Several new players have entered Pakistan’s market as a result of the previous Pakistan Muslim League-Nawaz (PML-N) government’s auto policy and incentives for new entrants. Customers, on the other hand, continue to pay their own money for quick delivery of new cars.
To order to address the issue, the new auto policy will impose severe penalties due to delayed delivery (over 60 days) of vehicles.
To increase demand for the recently elected potentials, federal excise duty on all cars was whittled down, and sales tax on small cars was reduced to make them affordable to the middle class.
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