AGL 37.85 Decreased By ▼ -0.24 (-0.63%)
AIRLINK 142.47 Increased By ▲ 6.13 (4.5%)
BOP 9.01 Decreased By ▼ -0.19 (-2.07%)
CNERGY 5.72 Increased By ▲ 1.00 (21.19%)
DCL 9.24 Increased By ▲ 0.39 (4.41%)
DFML 39.44 Increased By ▲ 1.10 (2.87%)
DGKC 89.31 Increased By ▲ 3.86 (4.52%)
FCCL 38.54 Increased By ▲ 3.39 (9.64%)
FFBL 77.44 Increased By ▲ 1.23 (1.61%)
FFL 13.62 Increased By ▲ 0.96 (7.58%)
HUBC 109.29 Increased By ▲ 0.59 (0.54%)
HUMNL 15.13 Increased By ▲ 0.40 (2.72%)
KEL 5.78 Increased By ▲ 0.20 (3.58%)
KOSM 8.20 Increased By ▲ 0.24 (3.02%)
MLCF 44.53 Increased By ▲ 3.75 (9.2%)
NBP 73.62 Increased By ▲ 2.68 (3.78%)
OGDC 191.76 Decreased By ▼ -3.49 (-1.79%)
PAEL 27.71 Increased By ▲ 0.75 (2.78%)
PIBTL 7.99 Increased By ▲ 0.53 (7.1%)
PPL 167.17 Decreased By ▼ -0.85 (-0.51%)
PRL 26.83 Increased By ▲ 0.64 (2.44%)
PTC 20.69 Increased By ▲ 0.35 (1.72%)
SEARL 97.53 Increased By ▲ 4.78 (5.15%)
TELE 8.21 Increased By ▲ 0.37 (4.72%)
TOMCL 35.00 Decreased By ▼ -0.49 (-1.38%)
TPLP 9.90 Increased By ▲ 0.99 (11.11%)
TREET 17.35 Increased By ▲ 0.06 (0.35%)
TRG 61.00 Increased By ▲ 1.73 (2.92%)
UNITY 31.64 Increased By ▲ 0.62 (2%)
WTL 1.46 Increased By ▲ 0.09 (6.57%)
BR100 11,096 Increased By 194.4 (1.78%)
BR30 33,289 Increased By 635.2 (1.95%)
KSE100 103,275 Increased By 1917.6 (1.89%)
KSE30 31,969 Increased By 481.1 (1.53%)

KARACHI: Pakistan is seeing a massive surge in intent and efforts when it comes to adopting electric vehicles (EV), but there are significant challenges – including logistical constraints – on the road ahead, say experts.

Surging fuel prices, record inflation, and an economic crisis in the backdrop of devastating floods and effects of climate change have all pushed consumers towards the ‘greener’ option. However, many still believe that it will take a lot more before EVs become a more common sight in Pakistan.

Atlas Honda tests the waters with electric scooter called ‘BENLY e’ in Pakistan

“EVs (four-wheel) or even electric bikes are mostly bought by the affluent, and these are their second vehicle, rarely used, mostly as a hobby,” said auto dealer Anjum Rizvi who has a showroom in Karachi’s Khalid Bin Waleed area.

“Most people are reluctant to buy EVs. It’s not because they don’t like them. They see it as an ‘experiment’ at the moment and in this time of high inflation, no one wants to experiment with money.”

While Pakistanis may need to wait before seeing EVs ply on the roads, the harm being caused by traditional vehicles will be irreversible.

Bigger than Elon Musk’s Tesla: Chinese EV giant BYD takes centrestage

Yasir Hussain of Climate Action Center – a group that creates awareness for climate change initiatives – said roughly, over 50% of Pakistan’s air pollution in urban areas comes from tailpipes. Reducing pollution due to mobility will be one of the major feats for a sustainable future.

Rizvi said positive user experiences will be the biggest reason behind people embracing EVs at an individual capacity.

“Government can play a role and more importantly, the bulk use of transport, such as ride-hailing and logistics companies, can play a role as they can overcome challenges comparatively easily as compared to individuals,” Rizvi said.

EVs’ manufacturing licenses: two, three wheelers take front seat in Pakistan

Experience so far

However, the picture in the industry setup tells a different story.

After interviewing at least half a dozen key players in the ride-hailing, delivery and logistics space, there are several hindrances in the adoption of EVs.

Hussain of Climate Action Center said electric motorcycles have been facing challenges in the ride-hailing segment because the passenger weight significantly reduces efficiency – the prime reason for adopting an electric bike.

Rafiq Malik, chief operating officer of Bykea, among the leading players in the space, corroborated this. He also mentioned that extra weight and speed significantly reduce range.

“The first wave of EVs generally isn’t well-suited for a bike-taxi business. Similar feedback comes from Gojek in Indonesia and Ola in India (once you remove the subsidies).”

Bykea conducted a pilot with electric bikes from January to June last year. However, they encountered significant challenges.

High fuel prices are changing the landscape of ride-hailing: how are the players responding

In an interview with Business Recorder, Malik stated the first challenge is the high price of electric bikes, which is on average 3-4 times higher than that of an ICE (Internal Combustion Engine) motorcycle.

The company also struggled with battery performance.

“We experienced performance uncertainty and noticed the battery performance deteriorating over time. Initially, we achieved 70 km per charge, which dropped to around 50 km per charge by the third or fourth month,” Malik said.

Another challenge they faced was electric bike maintenance.

“There is no repair ecosystem available, and drivers would have to return the bike to the vendor for minor repairs, leading to significant downtime and revenue loss.”

Malik also pointed out the lack of feasibility because these e-bikes with captive batteries need to be charged for 4 hours during the day after the first charge is depleted, causing a pause in driver earnings during business hours.

EV charging stations incurring ‘high cost’, insiders say

“Battery swap options also have few charging stations available, and it is very inconvenient for a driver to drive 10-15 km to swap out a battery. Also, what will the bottom line savings be if a charged battery was rented out commercially? We received estimates of Rs300-350 per swap, which is equivalent to the cost of a liter of petrol, and our drivers on an ICE bike achieve 40 km per liter.

“Based on our experience, if they achieve 55 km on 1 charge, their savings are not enough for them to spend 3-4 times to buy an electric bike.”

Meanwhile, high interest rates mean the cost of borrowing is too high – a buyer has to pay 60-90% over the bike’s price if bought on loan over a period of 2-3 years.

“The price of electricity has also doubled in the last three months, and there is no government subsidy to promote this and its ecosystem.”

Malik added that there is little salvage value in these bikes as well.

With aim to enable electric motorcycles in Pakistan, Zyp Technologies announces $1.2mn seed round

“There is no clear understanding of the resale value, as a battery lasting 1,000-2,000 charges (vendors usually quoted one of these as the normal life of the battery) is still a question mark,” he added.

Malik said riders also faced tech issues – gauges showing battery remaining but the bike dying in the middle of the road.

“Some vendors had apps to track this, but even those were not very accurate.”

Silver linings

Just like Bykea, other players in the mobility sector are also trying to test EV technology.

TCS Private Limited, one of the largest logistics organizations in Pakistan, initiated a pilot project in December 2023 with 50 electric bikes in collaboration with the start-up ezBike. These bikes are equipped with 2KW batteries and have a range of up to 100 km, capable of carrying a 40 kg delivery box.

While talking to Business Recorder, Saira Awan Malik, President of TCS Private Limited, highlighted that the adoption of electric vehicles (EVs) is not only about reducing carbon footprint but has a strong financial case as well. She mentioned that fuel costs could decrease by up to 50%, making EV adoption an energy-efficient and cost-effective solution.

inDrive to expand operations in five more cities in Pakistan

However, she noted that the industry is still in a nascent stage, and the transition to EVs may take time. Malik emphasised the need for multiple initiatives at the government level to encourage EV adoption, citing examples from the West.

These initiatives could include low-interest consumer financing, dual use of public infrastructure to provide charging and battery swap stations and incentives to EV manufactures.

She also stressed the government’s support for comprehensive public awareness campaigns.

inDrive, an international ride-hailing company with a strong footprint in Pakistan, also announced its partnership with Vlektra to introduce electric motorcycles to its fleet in the country. However, the company didn’t share further information on the partnership.

Talking to Business Recorder on EV adoption, inDrive’s Global Vice President Daniil Petin said the company was already piloting in Almaty, Kazakhstan, which is struggling with pollution just like Karachi and Lahore.

He said that inDrive is trying to ascertain actual carbon footprint.

“It (potential EV adoption) also varies from country to country because in some countries there is enough infrastructure already or is developing quickly,” he said.

The company is working on pilot projects in Indonesia and Kazakhstan.

“In Kazakhstan we launched a few electric cars to understand the economics. Electric cars are usually a bit more expensive than ICE cars. So we need to understand if the driver actually earns the same amount of money or even more because of an electric car.

“The initial findings are that the charging infrastructure is the key. Without that, it’s going to be very hard to scale the electric fleet in any country in any city.”

Careem suspends food-delivery business in Pakistan over unfavourable economic conditions

Careem, one of the oldest and key player in the ride-hailing business in Pakistan, also expressed its intent to gradually electrify its fleet.

“Careem is committed to having a positive impact on the environment and the communities it exists in,” said Careem’s spokesperson to Business Recorder queries.

“When it comes to electric vehicles, we are excited to explore options based on feasibility and scalability, given the infrastructural setup of it in Pakistan.”

Comments

Comments are closed.

Tariq Qurashi Mar 06, 2024 09:39am
EV's need a duty structure that will make them cheaper to buy than petrol vehicles; then sales will take off. At present hybrids and EVs are more expensive that petrol vehicles.
thumb_up Recommended (0)