ISLAMABAD — The growing global shift toward electric mobility presents a significant opportunity for Pakistan’s automobile industry to modernize manufacturing, improve energy efficiency and align with international technology trends, according to a new study on the sector.
The report, prepared by the Centre of Excellence in Competition Law at the Competition Commission of Pakistan and highlighted by Wealth Pakistan, examines how electric vehicles (EVs) could reshape the country’s automotive landscape as global markets increasingly move toward cleaner transportation technologies.
The study notes that electric vehicles are becoming a central component of future mobility worldwide. Global EV sales exceeded 17 million units in 2024, accounting for more than 20 percent of new vehicle sales globally.
Analysts say the rapid expansion of electric mobility is driven by technological innovation, environmental considerations and government policies designed to encourage cleaner transport systems.
Industrial and environmental implications
According to the report, the transition to electric vehicles offers Pakistan both industrial and environmental benefits. As urbanization increases and demand for personal and commercial transportation grows, EVs provide an alternative to conventional vehicles powered by internal combustion engines.
The adoption of EVs could help reduce emissions from road transport, which has become a major contributor to air pollution in many urban areas across Pakistan.
The study also highlights that the development of electric mobility involves multiple technologies, including battery systems, electric motors, charging infrastructure and advanced electronics. Expanding these industries could support technological development within Pakistan’s manufacturing sector.
Policy framework and industry potential
Pakistan has begun incorporating electric mobility into its long-term transport and industrial planning through the New Energy Vehicle (NEV) Policy 2025–2030. The policy aims to encourage the production and adoption of EVs while supporting industrial growth linked to emerging automotive technologies.
According to the report, the transition toward EV manufacturing could attract new investment in vehicle assembly, component production and supporting infrastructure such as charging networks.
Pakistan’s existing automobile industry—including assembly plants, vendor networks and a skilled manufacturing workforce—provides a foundation for gradual expansion into electric vehicle production.
The study concludes that participation in the EV sector could help Pakistan’s automotive industry adapt to changing global markets while promoting technological innovation and energy efficiency.
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