After military tech success, China seeks to electrify Pakistan’s mobility sector

India, the fifth-biggest economy in the world, is six times larger by population than Pakistan. Earlier this month, it accused Pakistan of launching a terror attack on its soil. The Indian media was beating the war drums and their government, led by the rightwing BJP, seemed to have plans to send Pakistan into the Stone Age.

The Goliath of South Asia eventually attacked its seemingly weaker neighbour with its full might.

It used Rafales - from the 36-unit French jets that it bought for a whopping $9.4 billion - with a single jet costing around $260 million, according to reports.

Like David in the biblical tale, Pakistan emerged triumphant, thanks to the valour of its patriotic soldiers and the support of Chinese jets and missiles — a victory now etched in history.

Pakistan’s deployment of J-10Cs marked the first combat use of the Chinese fighter jets and their PL-15 missiles, offering military analysts a rare opportunity to assess China’s defence capabilities. Many are in awe.

In the not-so-distant past, Chinese products were never considered top notch quality - cheap yes, top quality, no. In the automobile sector, Japanese cars are still considered better in Pakistan.

But Chinese manufacturers operating in Pakistan say things are now changing fast. With the current success in the defence sector, the perception about Chinese products is likely to improve further.

“Chinese vehicles have been making waves around the world. But acceptance in Pakistan is slow. The success of Chinese jets and missiles will certainly improve the image of Chinese products, especially hi-tech products such as electric vehicles,” an official of an EV manufacturing company told Business Recorder on condition of anonymity.

“It is too early to say that the recent Chinese air defence technology has directly affected the brand image (of hitech Chinese products), but yes it is expected that people of Pakistan will now have a keen inclination towards Chinese technology,” said another official.

Officials spoke anonymously to protect their sister companies from backlash in the Indian market.

In 2022, South Korea’s Hyundai Motor faced boycott calls from Indians who were incensed at a tweet from the account of a private dealer of its Pakistan partner that expressed solidarity with the people of the disputed territory of Kashmir.

Meanwhile, talking to Business Recorder on the sidelines of Slush’D, a tech event organised by Katalyst Labs, Chinese automaker BYD Vice President for Strategy and Sales Danish Khaliq avoided a direct answer to the question.

“Chinese technology has proved its mettle across the globe,” he said. Khaliq earlier spoke as a panelist in a session - ‘EV-olution: Charging Ahead in Pakistan’.

Last year, BYD left the US’s Tesla, owned by Elon Musk, behind in producing the highest number of EVs in the world.

There are many Chinese companies in the four-wheel segment and dozens in the two- and three wheel segments, which are betting on Chinese EVs in Pakistan.

Sharing some details, Khaliq said BYD will achieve a production capacity of 25,000 vehicles by next year (2026).

“We are upbeat on Pakistan’s EV potential. It is the reason why we are here,” he said. He added that BYD is hopeful and looking forward to leading the EV revolution in the country.

The entry of BYD into Pakistan’s mobility sector is a big milestone for the EVs. However, Pakistan’s car market has always been tricky. For the average household, buying a car is the second-biggest investment, the first being buying a house. Buyers are very cautious. The resale consideration trumps functions and technology. They go for tried-and-tested products and technology adoption is never quick.

Perhaps a low per capita income is the reason for this.

China is already Pakistan’s biggest arms supplier - accounting for 81% of Pakistan’s total military imports - according to data from the Stockholm International Peace Research Institute (SIPRI). One cannot rule out that this may be mirrored by the mobility sector in the next few years.

Addressing concerns that Chinese EVs, including completely knocked-down (CKD) and completely built-up (CBU) units, would increase Pakistan’s import costs, Khaliq countered that EVs would significantly reduce the nation’s fuel import bill, which accounts for around a quarter of the country’s total imports. It will reduce pressure on foreign exchange reserves, he added.

With BYD entering Pakistan, and many other factors such as economic benefits and a positive impact on climate change mitigation efforts, electrification of the mobility sector may be on the verge of a seismic change in Pakistan.