Govt backing, local production key to electric bike boom in Pakistan: industry insiders

KARACHI: Amid expectations that sales of electric motorbikes will touch 100,000 units by the end of this year, offering government-backed incentives such as tax exemptions, reduced duties on raw materials and financing options for buyers will bolster up the industry, according to industry sources.

They say public awareness campaigns should highlight the benefits of e-bikes, including their low running costs, environmental sustainability, and modern technology.

“Educational programs and roadshows will attract younger riders, gradually expanding the market,” he added, said e-bike firm VLEKTRA’s founder and CEO Syed Raza Mohsin while talking to Business Recorder.

“Collaboration with delivery companies and ride-hailing services will also create mass adoption,“ he added.

He said prices of e-bikes can be reduced by localizing production of key components, particularly batteries and motors, which currently account for most of the cost.

However, when companies opt for certain local parts, there is an 18% tax applied, which discourages local sourcing and makes cost reduction more difficult. To address this, government support is essential through removal of such taxes, along with waivers on raw materials.

Joint ventures with international battery makers, combined with mass production, will lower costs through economies of scale, he said. Affordable installment and leasing options will further ease adoption, while increased competition will drive prices down over time.

“At VLEKTRA, 70% of our motorcycle components are already localized, while the battery and motor are sourced through imports to ensure top safety and performance. Our vision is to achieve 100% localization within the next two years, which will reduce reliance on imports, create opportunities for local suppliers, generate employment, and strengthen Pakistan’s EV ecosystem.”

Key challenges include maintaining quality standards and overcoming the tax imbalance, as locally produced parts are taxed at 18% while imports face only 1% sales tax. Despite these hurdles, experts believe the opportunities are immense. With the right policy support and industry collaboration, Pakistan can emerge as a competitive EV manufacturing hub with import potential.

Poor roads and electricity infrastructure are not the main hindrances to fostering the EV bike industry. Countries like Thailand and Bangladesh, which also face such challenges, have achieved mass adoption of EVs, Mohsin explained.

“The real game-changer lies in policy support and financing programmes. In Pakistan, initiatives like the government’s Pakistan Accelerated Vehicle Electrification (PAVE) programme are a big step forward, as it is open to all provinces and provides easier leasing plans, making EV adoption more practical.”

EV subsidy: 116,000 electric bikes, 3,170 electric rickshaws/loaders to be introduced

Moreover, EV bikes are almost nine times cheaper to run than petrol bikes, significantly reducing daily commuting costs. With the right incentives and awareness, EV adoption in Pakistan can grow rapidly.

The challenge of charging

Currently there are no dedicated public charging stations for EV bikes in Pakistan. This remains one of the biggest hurdles for the industry, as there is no structured support from the government to build charging infrastructure.

Mohsin said, “at VLEKTRA, we are actively working to address this challenge by installing charging stations at our own showrooms in Karachi, Lahore, and Islamabad, providing free charging facilities to our customers.“

“Additionally, we are tackling the issue of range anxiety by introducing longer-range motorcycles, such as our Velocity 180 with a 180 km range on a single charge. While these steps ease the burden for our riders, the lack of a nationwide charging network continues to be a major obstacle for mass EV adoption.”

Meanwhile auto sector analyst Muhammad Sabir Shaikh said EV bikes are gaining immense popularity in Punjab because of small cities, better road infrastructure, and most people living in houses.

He highlighted three bottlenecks to adoption: poor road infrastructure, resale value of EV bikes, and to some extent higher prices.

When it comes to resale value, it is a tall order to address. The cost of an EV bike battery is expensive, and its life span is only two to three years. Once the rider plans to resell the bike, the battery will likely need to be replaced.

Saad Farrukh, CEO of Evee, an electric scooter company, has called for a continuation of the EV policy without any interruption and confusion. He believes surging demand for EV bikes will encourage localization expeditiously. Once companies scale up units, he believes they will switch over to localization.