Japanese and Korean Companies Are Eyeing Hybrid Electric Cars in Pakistan
Along with the release of the Federal Budget 2021-2022, the main framework of the Auto Industry Development & Export Plan (AIDEP) 2021-26 is additionally introduced while the entire policy is going to be finalized in August 2021.
In the AIDEP 2021-26, the govt. has planned to empower the local automotive industry to increase its operations & vehicle business assets while specialising in Hybrid Electric Vehicles (HEVs) & Electric Vehicles (EVs) by proposing their freedom from various taxes and duties. Asad Ali speaks about this step at KASB and said that,
“The policy with relevant concessions eyed for fixing Hybrid Electrical Vehicles (HEV) & Electrical Vehicles (EV) plants may invite ‘Japanese 3’ and ‘Korean 2’ to venture into HEV effectively increasing the industry capacity by 54 percent. We reckon that the world volumes will reach 264,000 units and 291,000 in FY22 and FY23, respectively.”
The Pakistan Suzuki Motor Company (PSMC), which was formerly preparing to expand by 100,000 units, is the most probable to act on this decision, while Honda Atlas Cars (HCAR) will follow abreast of its City Hybrid plans alongside further developments, as per the statement of Asad Ali.
Kia and Hyundai also are active participants within the HEV & EV segments within the international marketplace, & there’s the likelihood that they’re going to add HEVs & EVs to their teams in Pakistan to require full advantage of the AIDP-2026 concessions. He further said that Toyota Indus Motor Company (IMC) is probably going to be a primary mover in Pakistan’s HEV section of Pakistan to create the reductions & to add value to its schedule.
Ali also stated that the reductions for the HEV & EV segment within the AIDP-2026 will expose the potential of the auto sector & will lay the inspiration for more savings by companies. He also revealed that 15 new vehicle styles are going to be unveiled within the next few days & that the demand for spare parts, especially for HEVs and EVs, has been on the increase.
