Automark

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Pakistan’s automotive industry is entering one of the most interesting phases of its history. A market that was traditionally driven by fuel economy, affordability, and resale value is now experiencing a major transformation.

For decades, the Pakistani customer had one simple question:

“Which vehicle gives me the lowest running cost and maximum reliability?”

Today, that question is evolving:

“Which technology gives me the best ownership experience?”

The recent reduction in petrol prices has created a fresh debate across the automotive sector. After reaching historically high levels, petrol prices have seen a significant reduction, bringing relief to consumers. This development has raised an important question:

Will cheaper petrol slow down Pakistan’s electric vehicle revolution, or is EV adoption now moving beyond fuel prices?

The answer lies in understanding the changing mindset of the Pakistani customer.

Petrol Price Was an Accelerator, Not the Foundation of EV Growth

There is no doubt that rising fuel prices accelerated EV interest in Pakistan.

When petrol prices moved toward unprecedented levels, consumers started calculating their monthly transportation expenses more seriously. For daily commuters, especially motorcycle users travelling 40–50 km per day, fuel cost became a major financial burden.

This created an opportunity for electric motorcycles.

The customer thinking became:

“Petrol is expensive, I should shift to EV.”

However, EV adoption was never only about petrol prices.

Globally, electric mobility is being driven by:

• Lower maintenance cost
• Advanced technology
• Energy independence
• Environmental responsibility
• Reduced dependency on imported fuel
• Better driving experience

Fuel prices may influence purchasing decisions temporarily, but they cannot stop a global mobility transformation.

The Real Impact on Electric Motorcycles

The two-wheeler segment will experience the biggest short-term impact from petrol price reduction because Pakistan’s motorcycle market is highly price-sensitive.

A large percentage of customers buy motorcycles for daily transportation, and affordability remains the strongest factor.

Consider a simple comparison:

A petrol motorcycle averaging 40 km/litre:

At Rs.400/litre petrol:

Fuel cost ≈ Rs.10/km

At Rs.300/litre petrol:

Fuel cost ≈ Rs.7.5/km

An electric motorcycle may operate approximately around:

Rs.1–2/km

The saving has reduced, but it has not disappeared.

The future challenge for EV companies will not only be selling electric motorcycles.

It will be building customer confidence through:

• Battery warranty
• Battery replacement strategy
• Spare parts availability
• Technician training
• Reliable aftersales support

The next successful EV brands will not only sell vehicles — they will sell trust.

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Electric Cars: A Different Market Story

The impact of petrol price reduction on electric cars will be much smaller.

A customer purchasing a vehicle worth millions of rupees does not evaluate only fuel prices. The decision includes:

• Technology
• Performance
• Comfort
• Ownership cost
• Brand confidence
• Future value

Electric cars offer advantages beyond fuel savings:

• Instant torque
• Quiet driving experience
• Lower maintenance requirements
• Advanced features
• Reduced dependence on fuel imports

The EV car market is therefore moving toward a technology-driven decision rather than a fuel-saving decision.

The New Challenge: Changing Customer Mindset

The first phase of EV adoption was:

“Petrol is expensive, buy EV.”

The next phase must become:

“EV is the smarter mobility choice.”

This requires the industry to educate customers about Total Cost of Ownership (TCO).

Vehicle ownership is not only the purchase price.

Customers spend on:

• Fuel
• Engine oil
• Filters
• Repairs
• Maintenance
• Downtime

EVs change this entire ownership equation.

Honda’s Success: The Power of Trust and Ecosystem

While EVs are creating a new future, Pakistan’s petrol motorcycle market continues to demonstrate an important lesson.

For decades, Atlas Honda has maintained unmatched dominance in the motorcycle market.

The reason is not only product quality.

Honda created an ecosystem.

Reliability

The Pakistani customer values durability.

A motorcycle is not just transportation; for many families, it is a long-term asset.

Honda created a simple customer belief:

“Buy once, worry less.”

Spare Parts Availability

One of Honda’s biggest strengths is its nationwide ecosystem.

Customers know they can find:

• Parts
• Mechanics
• Repair support
• Technical knowledge

This created confidence that competitors struggled to match.

Resale Value

In Pakistan, resale value strongly influences purchase decisions.

Customers often think:

“After using this motorcycle, how easily can I sell it?”

Honda’s resale advantage became a powerful competitive barrier.

Why Many Competitors Failed Against Honda

Several companies entered the motorcycle market with attractive products and competitive pricing.

However, many struggled because they focused mainly on the product.

A motorcycle business is not only manufacturing.

It is an ecosystem business.

The common challenges were:

• Limited dealership network
• Weak aftersales support
• Parts availability issues
• Lower resale confidence
• Lack of long-term customer relationship

The lesson is clear:

A good product can attract customers.

A strong ecosystem keeps them.

The Rise of Premium Petrol Motorcycles

Despite EV growth, another interesting trend is developing in Pakistan — the premium petrol motorcycle segment.

A new generation of customers is looking beyond fuel average.

They want:

• Styling
• Performance
• Technology
• Better riding experience
• Road presence

This is creating opportunities for premium Chinese and international brands.

Higher-end motorcycles may not achieve mass volumes like 70cc or 125cc motorcycles, but they are creating a new enthusiast market.

The introduction of premium brands, including models from Thailand-based manufacturers such as GPX, shows that Pakistan’s motorcycle customer base is becoming more diverse.

Can Premium Petrol Bikes Succeed in Pakistan?

The opportunity exists, but success will depend on one thing:

Customer trust.

Premium customers demand:

• Professional dealerships
• Genuine spare parts
• Trained technicians
• Warranty support
• Brand commitment

Without aftersales strength, even an excellent motorcycle struggles.

The Future: Multiple Technologies Will Coexist

Pakistan’s future mobility landscape will not belong to only EVs or only petrol vehicles.

It will be a mixed market.

Entry-level transportation:

Electric motorcycles will continue growing.

Premium motorcycle segment:

High-quality petrol motorcycles will continue attracting enthusiasts.

Commercial and fleet segment:

EV adoption will accelerate because operating cost matters most.

The Next Battle: Experience vs Economy

The motorcycle and automotive industry is moving from:

“Which vehicle gives better mileage?”

towards:

“Which vehicle gives better value?”

Honda succeeded because it mastered reliability and ownership confidence.

The next generation of successful companies will succeed by combining:

Product + Technology + Design + Aftersales Experience

Pakistan’s mobility future is not about petrol versus electricity.

It is about who can deliver the best customer experience.

Petrol prices may rise and fall, but customer expectations will continue to rise.

The companies that understand this change will define the next decade of Pakistan’s automotive industry.

This exclusive article has been written by @asif-mehmood, Published in Automark’s July-2026 printed edition.

Islamabad Police has inducted a large fleet of RIDDARA electric pickup trucks, supplied by Capital Smart Motors (CSM), in a move officials are calling a landmark step for sustainable mobility in Pakistan’s public sector promoting BEVs as per the Government’s vision.

The handover took place at the Islamabad Police facility, with a large number of RIDDARA units joining the police fleet, among the first large scale inductions of all electric pickups into law enforcement in the country.

The shift away from conventional fuel vehicles is aimed at supporting cleaner, more efficient patrol and operational duties.

The move reflects the shared vision of Capital Smart Motors to bring electric mobility into Pakistan’s institutional and public sector fleets, not just the private passenger market. Vice Chairman Jahanzaib Zahid has voiced sustainable, future ready investment, to drive a broader push towards energy efficient transport solutions.

Under CEO Imran Zahid, Capital Smart Motors has expanded its EV portfolio significantly, bringing multiple international electric brands into Pakistan. The RIDDARA rollout to Islamabad Police reflects his continued focus on practical, fleet ready BEV solutions for institutional and government clients.

Capital Smart Motors COO Abid S. Usmani has also played a key role in this push, with his leadership focused on ensuring CSM’s EV offerings are dependable and fleet ready for institutional clients, including law enforcement and, potentially, the armed forces in future phases while the company is fast developing its local manufacturing facilities.

Industry watchers say public sector adoption, especially by police and security agencies, plays a key role in building national confidence in electric vehicles. As Pakistan moves further into its BEV transition, the RIDDARA induction marks a tangible step forward, linking corporate vision with the country’s wider sustainability goals.

Dear Readers !! Every vehicle produced from a production line has a complex and well-coordinated system of suppliers, manufacturers, logistics firms, warehouses, and distribution networks behind it.

Although consumers only see the final output, the effectiveness of the auto industry can be measured by how robust and dependable its supply chain is. In the dynamic nature of businesses nowadays, supply chain management has gone beyond being just an operation activity but a driver of success. Currently, the automotive sector is witnessing one of the greatest transformations ever recorded in the sector’s history. Technological developments, the trend towards the electrification of mobility, sustainability concerns, changing customer needs, and global competition are changing the entire process of design, production, and delivery of cars. In response to such changes, the supply chain has become an important pillar for organizations. The efficiency of the entire network will affect efficiency in production, quality of products, cost competitiveness, performance in delivering goods to customers and overall customer satisfaction. In today’s business world, where market conditions may change overnight, an effective and flexible supply chain is no longer an option.

In the contemporary world of connectivity, the automobile supply chain is no longer a support mechanism, rather it has become a strategic resource that dictates whether an organization can compete and expand. In a modern automobile, there are thousands of parts that are sourced from hundreds of suppliers in different countries. Whether it is materials, electronics, batteries, or any other equipment, every single part needs to reach its destination at the correct time, in the correct quantity, and at the correct cost.

Automobile manufacturers historically emphasized setting up efficient supply chain operations through the adoption of lean manufacturing and just-in-time techniques. This strategy ensured that the cost of maintaining inventory was kept low and operations were made efficient. The strategy worked for many years and facilitated increased efficiency for the companies. Recent disruptions in the global landscape have shown that efficiency is not enough for the future anymore. Today’s problems that exist in automotive supply chains have never been seen before. The phenomenon of globalization has led to the development of complex supply chain relationships that span the whole globe. This makes manufacturers reliant on global transportation and logistics. Although globalization opens up new opportunities such as competitive sourcing and technological advances, it also means that an organization is susceptible to many risks, including political, regulatory, transportation, and economic ones.

One of the biggest problems that have been faced by the automotive industry today is uncertainty of supply. Auto manufacturers depend upon a few suppliers for some of the important parts of their product line such as electronics, semiconductors, batteries, and manufacturing equipment. An interruption in supply by any of these suppliers can easily cause ripples across the whole production chain. The semiconductor crisis seen in the last few years has been a good example of that problem. The move towards EVs has presented both new challenges and opportunities within the automotive supply chain. Electric vehicles need very different components from those needed in an internal combustion engine. Batteries, motors, electronics, and chargers are now important parts of vehicle production. With the increasing demand for EVs across the world, there is stiff competition for important raw materials like lithium, cobalt, nickel, and rare earth elements. Access to these raw materials has now become a challenge for automotive firms around the world.

Apart from difficulties in obtaining materials, logistics continues to be a vital issue. Manufacturing operations in the automotive industry are scheduled meticulously such that even minor delays in the process of transporting may have an impact on the production outcome. Increased freight charges, container scarcity, port delays, customs clearance delays, and infrastructure constraints are some of the operational issues that keep cropping up. For businesses relying on imported knock-down (KD) kits and manufacturing machines, it is extremely essential to coordinate the shipping process. Warehouse and inventory management have become other important issues of concern. Low inventory is beneficial for reducing carrying costs, but too little inventory creates vulnerabilities in case of disruption in the flow of goods. Nowadays, many firms are considering their options for creating inventories that achieve both efficiency and supply chain reliability. Problems associated with limited warehouse space, restricted bonded warehouses, and growing storage needs make the issue even more complicated. The development of successful warehousing strategy is needed not only for producing but also for growth.

One other significant problem encountered by the automotive industry is the growing complexity of the regulatory and compliance requirements. The environment, safety, quality management, and global trading policies are continuously changing. It is the responsibility of the manufacturers to ensure that their suppliers meet these regulatory and compliance requirements. Failure to meet these requirements could lead to operational problems. Despite the mentioned difficulties, there are many great opportunities for the automotive industry to update its supply chain systems. The first and foremost one is localization. Through building a supplier network in the same country and raising the share of locally sourced parts, companies will be able to lessen their reliance on global supplies, increase lead time, be more flexible, and boost the industrial capacities of the country. There is yet another area through which digital transformation presents another opportunity to improve the supply chain. Technologies like artificial intelligence, predictive analytics, cloud computing systems, Internet of Things (IoT) sensors, and digital supply chain management solutions are changing the way in which organizations operate and control their processes. The ability to have real-time insight into the organization’s inventory, performance of the suppliers, status of shipments, and production needs allow for better decision making.

There is an increasing need for data based planning within the automobile sector. Today’s forecasting technologies are capable of evaluating past trends, environmental considerations, and the dynamics of customer demands to enhance the effectiveness of planning. Improved forecasting skills would allow organizations to manage their inventory and procurement practices in such a manner that material shortages or surplus can be avoided. The advent of electric mobility offers a rare chance to rethink supply chains. With companies making efforts to build electric cars, there is the need to set up new supplier networks in areas such as batteries, chargers, power electronics, and new vehicles. Companies able to secure positions within these evolving value chains will have an edge in the competitive landscape. Partnerships with tech companies, battery makers, and infrastructure firms can offer companies the potential for growth and success.

Sustainability is another significant catalyst for change in supply chain management. The customers, regulatory authorities, investors, and other stakeholders are becoming increasingly stringent about how sustainable the organization is in its processes. Sustainable supply chain management includes lowering carbon footprint, enhancing energy efficiency, cutting down waste production, using optimal transportation routes, and sustainable procurement of material resources. The organization that integrates sustainability in its supply chain strategy gains environmental effectiveness along with reputation and competitiveness. In the long run, future success in automotive logistics will hinge on the ability of the organization to foster resilience without compromising efficiency. Resilience is not about avoiding all risks, but instead having the ability to predict, adapt, and recover from any disruption. This involves diversification of supplier base, cultivating good supplier relations, optimizing inventory management, improving logistics, and using information technologies to ensure visibility and control.

Collaboration is going to be key to future supply chain success. Companies must collaborate with manufacturers, suppliers, logistics firms, and government bodies, among others, to solve their common problems in the process of coming up with sustainable solutions for themselves and other industries. Investments in infrastructure would be crucial as well. The warehouse, transportation system, manufacturing plants, and communication technology represent the core infrastructure required for a strong supply chain network. It is vital to ensure that the existing infrastructure can cater to future needs as production volumes grow and the use of electric vehicles becomes more common. As well, it is vital that human capital should develop. It is imperative that supply chain managers have the ability to handle more advanced operations. Learning how to use digital technology, data analytics, risk management, project management, and strategic procurement would prove to be very essential.

Take way from this article:

The auto industry is at a critical juncture in its development journey. Despite continuing to experience many problems associated with supply chain management, which causes great challenges, there are many areas where innovations and transformations can be implemented. Companies that adopt digitalization strategies, foster strong supplier relationships, invest in localization processes, develop their logistics systems, and focus on resilience will be able to make the most out of both the challenges and opportunities that exist. In light of the shift in the direction toward electric and intelligent vehicles, supply chain excellence will still be an essential factor influencing competitiveness and success in the industry.

Exclusive written by @muhammad Rafique and published in Automark’s July-2026 printed and digital edition.

Introduction

Dear Readers Pakistan’s automobile industry stands at a critical turning point following the Federal Budget 2026-27. For decades, the sector has been protected through high tariffs, import restrictions, and localization incentives. While these measures helped establish a domestic manufacturing base, they also resulted in limited competition, high vehicle prices, and restricted consumer choice.

The Budget 2026-27 arrives at a time when Pakistan is striving to stabilize its economy, attract foreign investment, increase exports, and promote industrial growth. At the same time, policymakers are preparing a new automobile policy that is expected to reshape the industry over the coming years.

The combination of budgetary measures and the anticipated auto policy could determine whether Pakistan’s automobile sector remains protected and inward-looking or evolves into a competitive, technology-driven industry capable of meeting global standards.

This article explores the implications of the Budget 2026-27, the expected direction of the upcoming auto policy, and the opportunities and challenges facing manufacturers, investors, and consumers.

Current State of Pakistan’s Automobile Industry

Pakistan’s automotive sector contributes significantly to the economy through manufacturing, employment generation, tax revenues, and industrial development. The industry includes passenger cars, motorcycles, commercial vehicles, tractors, auto parts manufacturing, and aftermarket services.

Over the years, the sector has been dominated by a few major assemblers. While new entrants have entered the market under previous automotive development policies, competition remains relatively limited compared to regional markets.

The industry continues to face several challenges:

• High production costs
• Dependence on imported components
• Currency depreciation
• Rising energy prices
• High financing costs
• Supply chain disruptions
• Low vehicle ownership rates

Despite these challenges, Pakistan remains an attractive market due to its large population, growing urbanization, and increasing demand for mobility solutions.

Budget 2026-27: Key Themes Affecting the Auto Sector

Although the budget focuses broadly on fiscal stability and revenue generation, several measures directly and indirectly affect the automobile industry.

1. Revenue Mobilization and Tax Reforms

The government continues its efforts to broaden the tax base and increase revenue collection. Any changes in sales tax, customs duties, withholding taxes, or regulatory duties can significantly influence vehicle prices.

Higher taxes may increase the cost of ownership for consumers, while targeted relief measures could stimulate demand and encourage market expansion.

For manufacturers, tax predictability remains critical. Frequent policy changes create uncertainty and discourage long-term investment decisions.

2. Import Management

Pakistan continues to manage foreign exchange reserves carefully. As a result, policies related to imports remain important for the automobile industry.

Vehicle assembly in Pakistan relies heavily on imported components. Any restrictions on imports or foreign exchange allocations can affect production schedules and delivery timelines.

Industry stakeholders expect future policy measures to strike a balance between protecting foreign exchange reserves and ensuring uninterrupted industrial activity.

3. Industrial Development

The government has repeatedly emphasized industrial growth and value addition. The automobile sector is likely to remain a priority because of its extensive linkages with steel, plastics, electronics, engineering, logistics, and services industries.

Supportive industrial policies can help strengthen local manufacturing capabilities and create employment opportunities across the value chain.

4. Investment Promotion

Pakistan is actively seeking domestic and foreign investment. The automobile industry offers significant potential due to its relatively low motorization rate compared with regional peers.

Budgetary incentives that encourage industrial investment could attract new entrants, expand production capacity, and improve technological capabilities.

Anticipated Auto Policy: What to Expect

Industry experts believe the upcoming auto policy may focus on competitiveness, localization, technology adoption, and export promotion.

Several key themes are likely to shape the policy framework.

Greater Market Competition

One of the most anticipated aspects of the new policy is increased competition.

Historically, the market has been dominated by a limited number of manufacturers. Greater competition can bring several benefits:

• Improved product quality
• Better customer service
• More vehicle choices
• Competitive pricing
• Faster technology adoption

The government may continue encouraging new entrants while creating a level playing field for both existing and incoming manufacturers.

A competitive market environment is essential for long-term industry growth.

Focus on Localization

Localization remains a central objective of Pakistan’s industrial strategy.

The upcoming policy may introduce new localization targets for manufacturers, encouraging greater production of parts and components within Pakistan.

Benefits of localization include:

• Reduced import dependence
• Foreign exchange savings
• Employment generation
• Development of engineering capabilities
• Stronger supply chains

However, localization requires significant investment, technology transfer, and quality improvements.

The challenge for policymakers will be to promote localization without increasing production costs excessively.

Electric Vehicles and Green Mobility

Electric vehicles (EVs) are expected to occupy a prominent place in the new auto policy.

Around the world, governments are promoting cleaner transportation solutions to reduce emissions and fuel dependence.

Pakistan is also exploring ways to expand EV adoption through:

• Tax incentives
• Reduced import duties
• Charging infrastructure development
• Local manufacturing support
• Research and development initiatives

The transition to electric mobility could create entirely new investment opportunities in battery manufacturing, charging networks, software development, and renewable energy integration.

However, significant infrastructure challenges remain.

Reliable electricity supply, charging networks, and consumer awareness will be essential for successful EV adoption.

Export-Oriented Manufacturing

Pakistan’s automobile industry has traditionally focused on the domestic market.

The upcoming policy may place greater emphasis on exports.

Countries such as Thailand, Turkey, and Morocco have successfully developed export-oriented automotive industries through strategic policymaking and international partnerships.

To achieve similar success, Pakistan must focus on:

• International quality standards
• Competitive production costs
• Skilled workforce development
• Trade facilitation
• Supply chain efficiency

Export growth could help generate foreign exchange earnings while reducing dependence on domestic demand cycles.

Technology Transfer and Innovation

Modern vehicles increasingly rely on advanced technologies, including:

• Artificial intelligence
• Smart sensors
• Connected systems
• Electric powertrains
• Advanced safety features

The anticipated policy may encourage greater technology transfer from international partners.

Investment in innovation can help local manufacturers remain competitive in an evolving global market.

Universities, research institutions, and private companies may play a larger role in supporting technological development.

Consumer Benefits

Consumers stand to gain significantly if the new policy promotes competition and efficiency.

Potential benefits include:

Better Vehicle Choices

More manufacturers and models can provide consumers with wider options across different price segments.

Improved Quality

Competition often encourages higher quality standards and better after-sales services.

Enhanced Safety Features

Modern safety technologies may become more common as manufacturers compete to attract customers.

Lower Prices

While prices are influenced by taxes and exchange rates, increased competition can help reduce excessive premiums and improve affordability.

Challenges Facing the Industry

Despite the opportunities, several challenges remain.

Economic Volatility

Macroeconomic instability remains one of the biggest concerns.

Factors such as inflation, exchange rate fluctuations, and interest rates directly affect vehicle affordability and production costs.

Rising Input Costs

Manufacturers continue to face increasing costs for:

• Raw materials
• Energy
• Logistics
• Imported components

Managing these costs while maintaining competitiveness will be difficult.

Infrastructure Constraints

Industrial growth requires reliable infrastructure, including:

• Electricity
• Transportation networks
• Digital connectivity
• Logistics facilities

Infrastructure limitations can reduce productivity and increase operating costs.

Regulatory Consistency

Investors prefer stable and predictable policies.

Frequent changes in tax rates, import rules, or localization requirements can undermine confidence and delay investment decisions.

A long-term policy framework is essential for sustainable growth.

Opportunities for Auto Parts Manufacturers

The upcoming policy may create substantial opportunities for Pakistan’s auto parts industry.

Local vendors can benefit from:

• Increased localization targets
• New manufacturing investments
• Export opportunities
• Technology partnerships

The development of a strong vendor ecosystem is critical for building a competitive automotive industry.

Small and medium-sized enterprises can play an important role in supplying components to both domestic and international markets.

The Role of Foreign Investors

Foreign investment will remain a key driver of growth.

International manufacturers can contribute through:

• Capital investment
• Technology transfer
• Management expertise
• Global supply chain integration

Pakistan’s large consumer base and strategic location make it an attractive destination for automotive investment.

However, investors will closely monitor policy consistency, economic stability, and ease of doing business.

Looking Ahead: A New Direction for the Industry

The period following Budget 2026-27 could represent a defining chapter for Pakistan’s automobile sector.

The industry is moving beyond traditional protectionist policies toward a model focused on competitiveness, innovation, and sustainability.

If the anticipated auto policy successfully balances industry support with market competition, Pakistan can build a stronger automotive ecosystem capable of generating jobs, attracting investment, and expanding exports.

The shift toward electric mobility, localization, and technological advancement offers a unique opportunity to modernize the sector and align it with global trends.

Success, however, will depend on effective implementation, regulatory consistency, and collaboration between government, manufacturers, suppliers, investors, and consumers.

Conclusion

Pakistan’s automobile industry faces both significant opportunities and serious challenges in the aftermath of Budget 2026-27. The anticipated auto policy has the potential to reshape the sector by promoting competition, encouraging localization, supporting electric vehicles, attracting investment, and expanding exports.

For consumers, this could mean better products, improved services, and greater affordability. For manufacturers and investors, it could create new growth opportunities and strengthen Pakistan’s industrial base.

The road ahead will not be without obstacles, but with thoughtful policymaking and long-term commitment, Pakistan’s automobile sector can become a major contributor to economic growth and industrial development in the years to come.

The next few years may well determine whether Pakistan emerges as a competitive automotive manufacturing hub or continues to struggle with structural challenges. The choices made today will shape the future of the industry for decades to come.

This exclusive article published in Automark’s July-2026 printed edition. Written by @aqeel Bashir

Chery Master Pakistan has rolled off the locally assembled Tiggo 7 PHEV, adding a third plug-in hybrid SUV to its Pakistan portfolio and strengthening its presence in the country’s growing new energy vehicle segment.

With the addition of Tiggo 7 PHEV, the company now has three locally assembled PHEV SUVs in production, including Tiggo 8 PHEV and Tiggo 9 PHEV. The lineup covers the C, D and E-SUV segments, making it one of the most extensive locally assembled plug-in hybrid SUV portfolios currently available in Pakistan.

The development follows the earlier line-off of Tiggo 8 PHEV and Tiggo 9 PHEV, which were rolled out within five days of each other, followed by customer deliveries ahead of committed timelines. The company said the latest rollout reflects its focus on localization, production readiness and timely deliveries.

The milestone also comes at a time when the auto sector is closely watching possible policy and tax changes that could affect vehicle prices. Chery Master Pakistan said it has increased production capacity and moved to double-shift operations to facilitate deliveries for existing customers and new bookings placed during June across its model lineup.

The Tiggo 7 PHEV was launched in Pakistan at an introductory ex-factory price of PKR 9,499,000, with a booking amount of PKR 1,500,000. Test drives and bookings are available through Chery dealerships nationwide.

Powered by Chery Super Hybrid technology, the Tiggo 7 PHEV offers 342 horsepower and 525 Nm of torque, with up to 90 km of pure electric driving range and a combined range of up to 1,200 km. The vehicle is equipped with eight airbags, Level 2 ADAS and a 5-star safety rating.

Speaking on the occasion, CEO Master Auto Engineering, Samir Malik, said the rollout of Tiggo 7 PHEV marks another step in the company’s long-term commitment to Pakistan.

Globally, Chery has been China’s leading automotive exporter for 23 consecutive years, with operations in more than 130 countries and regions and over 19 million users worldwide. In Pakistan, the brand is backed by Master Group’s 40 years of automotive manufacturing expertise.

In a landmark moment for Pakistani engineering and sustainable mobility, the NUST Formula Student Team (NFST) officially unveiled their 2026 hybrid challenger, the NAS HV-26 (Car 268), on 2nd June, 2026. The state-of-the-art vehicle represents the team’s latest leap in advanced electric-hybrid technology.

Designed and manufactured entirely by undergraduate students at NUST’s Pakistan Navy Engineering College (PNEC) campus in Karachi, Nas HV-26 will proudly represent Pakistan on the global stage at the upcoming international Formula Student competition in Türkiye later this year in September.

Engineering Superiority: The Core Architecture

After successfully manufacturing eight generations of combustion vehicles before transitioning to sustainable tech, the NFST continues to push the boundaries of the global automotive industry’s shift toward hybrid systems. The NAS HV-26 represents a major engineering step for the team, built upon a foundation of relentless testing, design reviews, and manufacturing decisions by students who refused to settle for average.

At its core, this machine seamlessly integrates three fundamental pillars into a single high-performance platform: aerodynamic bodywork wrapped around a student-built chassis optimized for maximum strength and driver safety (Structure); a precision suspension and tyre package developed for absolute stability, razor-sharp steering response, and grip on the track (Control); and an advanced hybrid powertrain system engineered for peak performance and reliability, marking the team’s permanent transition toward the future of Formula Student engineering (Power).

“Every component you see tonight has gone through countless hours of refinement,” the team announced during the reveal. “This is not just a car built for competition. It is a platform for learning, innovation, and Pakistan’s presence on international engineering tracks.”

A Collaborative Triumph: Gratitude to Our Sponsors

The continuous development of our hybrid powertrain and the physical manufacturing of Car 268 was a monumental task that would not have been possible without the unwavering support of our corporate partners. The NUST Formula Student Team extends its deepest gratitude to the visionary companies that fueled this innovation.

NFST is incredibly thankful for the critical backing of Orient, PSO, HMR, Dipitt, Ressichem, State Life, Buraq, EIE, Descon, Fersa, WEmpower, BOC, Imtiaz, Nashmia, Vision, and Passu.

These industry leaders provided the essential financial, logistical, and technical resources necessary to source complex high-voltage components and bring this magnificent car to life. Their commitment to empowering youth and fostering technological advancement in Pakistan is the driving force behind our journey to Türkiye.

A Legacy of International Excellence

Initiated in 2012, the NUST Formula Student Team holds the prestige of being the first team from Pakistan to participate in global Formula Student events, including the legendary Hockenheimring in Germany and the Silverstone Circuit in the UK.

In 2024, the team made history by taking their very first hybrid vehicle to Silverstone for FS UK 24. Building on that groundbreaking milestone and their recent success of securing a top 5 overall position and 1st place in the Lap Time Simulation event at FS UK, the team is now setting its sights on dominating the hybrid class in Türkiye.

The unveiling ceremony drew significant attention from automotive enthusiasts, industry veterans, and university leadership, all gathered to witness the future of Pakistan’s motorsport capabilities.

About NUST Formula Student Team (NFST):

Based in NUST-PNEC Karachi, NFST is a student-run organization that conceives, designs, and fabricates formula-style race cars. Named in honor of Captain Nadeem Ahmed Shaheed (NAS), the team represents the pinnacle of youth innovation, teamwork, and technical excellence in Pakistan.

Vehicle Audit Procedure in Automobile Companies:

A complete vehicle audit is carried out on vehicles that are fully ready for customer delivery. It is important to note that the auditor does not inspect every vehicle. Instead, vehicles are selected randomly, and a detailed audit is performed on those selected units.

The number of vehicles to be audited daily depends on the production volume. For example, if 100 vehicles are produced in a day and the audit sampling ratio is 1 vehicle out of every 20 vehicles, then the auditor will inspect 5 vehicles per day.

Importance and Process of Vehicle Audit in Automobile Manufacturing:

A vehicle audit is one of the quality management tools. It tests products independently and systematically against the customer’s perception of quality by using sampling inspection procedures. It evaluates the quality of the vehicles and the degree of completion according to the standard and the consistency of the vehicle manufacturing quality. At the same time, it quantitatively describes the level of vehicle quality. Every department has to pay close attention to the audit results and implement timely and effective measures to eliminate or improve the deficiencies suggested by the vehicle audit. The goal is to improve the degree of customer satisfaction by continuously improving vehicle quality and maintaining vehicle consistency.

The vehicle audit is to make an objective evaluation of the vehicle’s quality condition, which has passed the inspection by standing in the customer’s position. The main estimation gist is customer perception, vehicle function, and whether it is an artificial defect.

There is only one standard for vehicle audits, no matter the types, levels, or equipment of the vehicles.

A self-brand audit will use the unified implementation standard to evaluate the manufacturing level and vehicle quality status in every site.

The auditor will point out the defects very critically, so usually the auditor points out more defects than usual customers.

An audit is a method of quality control, not the technique standard. It can provide quality information input to vehicle design.

The objective of vehicle audits

• Evaluate the vehicle’s quality objectively and fairly.
• Monitor stability during the production process.
• Push the continuous improvement of vehicles’ quality.
• Establish good brand image.

Vehicle audit organization.

Regulations of Vehicles audit

Although the auditor has been trained professionally and there is detailed instruction for the vehicle audit and appraisal, the auditor also has some certain flexibility in the appraisal aspect. This is absolutely effective according to the audit’s ‘first feeling’ regulation.

The defect, which cannot be redisplayed in the vehicle’s audit presentation, is still valid. These defects are always the abnormal sound, seal, operating force, functional defect, and painting defect only clear under the natural light.

Some slight defects pointed out by the vehicle’s quality audit don’t have to be modified but are used to be the start of continuous improvement to provide relevant quality information and objectively reflect the quality condition.

Leaders and colleagues cannot put pressure on auditors. Direct leaders can remind auditors to use the defect types according to the regulation.

An audit is part of the quality assurance, and the objective is to evaluate the vehicle’s quality condition, which cannot be confused with checking or replacing the other quality control measures during the production process.

The requirement to audit vehicles.

Only the vehicle auditor, after training and confirmation by the quality assurance department, can check and evaluate vehicles to calculate the formal vehicle audit result according to vehicle audit methods.

Before the confirmation of the vehicle auditor, no audit result can be put in the vehicle audit computer system and further calculate the audit result.

Before the vehicles audit committee, the vehicles auditor cannot decide not to impugn a certain defect by himself.

The vehicle auditor should have rich working experience of car body, painting, and final assembly and be familiar with the vehicle manufacturing process.

The confirmation of the vehicle audit’s responsible department:

The responsible department of vehicle audits is decided according to processing technique and direct feeling to the customer. The department should coordinate with other relevant departments and push the implementation of rectification measures.

The vehicle audit defect responsible department cannot be changed because the change will cause an abnormal change of the relevant department quality trend and cause misleading to relevant people.

The responsible department has five departments: stamping, car body, painting, assembly, and bought-in components.

Every responsible department should not dispute and explain with the auditor and should perform functions like analysis of causes.

The audit system also plays a major role in:

• Monitoring production stability
• Maintaining vehicles’ consistency
• Supporting continuous quality improvement
• Protecting and improving brand image
• Increasing customer satisfaction

Vehicle auditors are specially trained professionals who evaluate vehicles objectively according to defined audit standards. Their responsibility is not only to find defects but also to provide accurate quality information that helps departments improve manufacturing processes. The audit results guide all related departments, such as stamping, body shop, paint shop, assembly, and bought-in components, to take corrective and preventive actions.

Another important aspect of vehicle audits is that they focus on the customer’s first feeling. Even minor defects, abnormal sounds, paint imperfections, sealing issues, or functional problems are considered important because they directly affect customer perception and satisfaction.

In conclusion, vehicle audits are not just an inspection activity; they are a strategic quality assurance process that helps automobile companies maintain high manufacturing standards, reduce customer complaints, improve vehicle reliability, and achieve long-term customer trust and brand reputation.

Conclusion – Vehicles Audit in the Automobile Industry

Vehicle audits are one of the most important quality management tools in the automobile industry. Its main purpose is to evaluate the final vehicle from the customer’s point of view before delivery. The audit helps companies ensure that the vehicle quality, functionality, appearance, and overall manufacturing standards meet customer expectations and company requirements.

The vehicle audit process is performed through random sampling instead of inspecting every vehicle. This method allows companies to monitor production quality efficiently while maintaining control over manufacturing consistency. Auditors inspect selected vehicles critically and independently to identify defects that normal production inspections may miss.

Exclusive written by Shoaib Ali and published in Automark’s June-2026 printed edition

Learning from the Past – Earning from the Present – Growing from the Future – Episode: 13

Summary of the Last Article

Range Extended Electric Vehicles (REEV), a special type of EV that bridges the gap between battery electric vehicles (BEVs) and Hybrid Electric Vehicle (HEVs). They have a larger battery than hybrids, allowing to drive solely on electricity being Pure Electric Vehicle include a gasoline engine as a generator to recharge, not to drive the wheels. REEV car took benefits of EV while week infrastructure of Pakistan’s country sides.

REEVs are gaining traction in Pakistan to combat range anxiety, with Deepal S05, Forthing Friday REEV and Nora EV, with prices ranging from PKR 70 Lakh to 1 Crore+.

A Plug-in Hybrid Electric Vehicle (PHEV) is a car that combines a gasoline engine with an electric motor and a larger battery, which can be charged by plugging into an external power source. They offer electric-only driving for short trips and automatic switching to efficient hybrid mode for long distances. 

 Now Read On….

Today we will write in detail about BEV mean Pure Electric Vehicle.

What is BEV?

BEV stands for Battery Electric Vehicle. It refers to a car that runs exclusively on electricity stored in a rechargeable battery pack and relies on an electric motor instead of a traditional gas-powered engine.

Electric Vehicle (EV) is propelled by one or more electric motors instead of an internal combustion engine. It runs on electricity stored in rechargeable battery packs and is “refueled” by plugging into an electrical outlet or charging station.

Core Performance & Design

• Instant Torque & Acceleration: Unlike gas engines that must build up revs, electric motors deliver 100% of their torque immediately, providing instant acceleration.
• Regenerative Braking: When the driver takes their foot off the accelerator, the motor acts as a generator, slowing the vehicle down and converting that kinetic energy into electricity to recharge the battery.
• Fewer Moving Parts: Because electric motors contain only a few moving parts compared to complex internal combustion engines, they require significantly less maintenance (e.g., no oil changes or spark plug replacements).
• Spacious Layout (Frunks): Without the bulk of a gas engine under the hood, EVs are often designed with extra storage space in the front, commonly referred to as a “frunk”.

Environmental & Economic Benefits

• Zero Emissions: Battery Electric Vehicles (BEVs) produce zero tailpipe emissions, helping to drastically reduce localized air pollution and lower your carbon footprint.
• Lower Running Costs: Charging an EV with electricity is generally much cheaper than continuously filling up a tank with petrol or diesel, and maintenance costs are lower over the vehicle’s lifespan.

Smart Technology & Convenience

• Over-the-Air (OTA) Updates: Modern EVs act like large smartphones, receiving software updates via the cloud that can improve vehicle performance, unlock new features, or patch bugs without visiting a dealership.
• One-Pedal Driving: By utilizing aggressive regenerative braking, drivers can accelerate, decelerate, and come to a complete stop using only the accelerator pedal.
• Cabin Preconditioning: You can use a companion smartphone app to heat or cool the car’s interior while it is still plugged into the charger, saving battery range for your actual drive.

Local Context (Pakistan):

• EVs: Excellent for intra-city commutes in major urban centers like Lahore, Islamabad, and Karachi, especially if you have a home solar setup. However, public charging infrastructure is still growing, making inter-city travel on motorways somewhat challenging.

When to Choose Which

Choose a BEV if you have reliable home charging, primarily commute short distances, and want near-zero maintenance. Choose an HEV if you live in an apartment, frequently take long road trips, or prefer standard gasoline fueling without relying on charging infrastructure.

Battery Electric Vehicles (BEVs)

BEVs run entirely on electricity stored in a battery pack. They are plugged in to charge and do not have a gasoline engine.

• Best For: Daily urban commuters with access to a home or workplace charger.
• Pros: Lower running and maintenance costs, zero tailpipe emissions, and a smoother, quieter ride.
• Cons: Higher upfront cost and “range anxiety” if public charging infrastructure is sparse.

EV Models and Prices in Pakistan

Electric vehicle (EV) options in Pakistan are expanding rapidly, featuring everything from budget-friendly mini cars to luxury crossovers. Prices generally span from PKR 15 Lac for entry-level models to over PKR 5 Crore for high-end imports.

• Budget/Mini EVs: Alektra Metro (PKR 10 – 13 Lac), Honri Ve (PKR 35.99 – 43.99 Lac), and Dongfeng Box (PKR 55 – 68 Lac).
• Mid-Range & Crossovers: BYD Atto 2 (PKR 72.90 Lac), BYD Atto 3 (PKR 89.90 Lac), and MG ZS EV (PKR 76 Lac – 1.50 Crore).
• Luxury EVs: Audi e-tron (starting at PKR 1.36 Crore), Porsche Taycan, and BMW iX.

Global EV Sales Volume & Growth

• 2022: Approximately 10.5 million vehicles sold globally.
• 2023: Sales grew by roughly 31%, reaching about 13.8 million units.
• 2024: Total electrified sales climbed to ~17.5 million, a 28% jump from 2023.
• 2025: Market reached an all-time high with approximately 20.7 million EVs sold worldwide.
• 2026 (Q1): Global sales reached 4.0 million units. While 2026 figures temporarily softened by roughly 3% year-over-year globally in Q1, Europe saw a 24% surge in demand, and emerging markets (like Australia, New Zealand, and ASEAN countries) are experiencing triple-digit growth as gas prices rise.

Market Share & Regional Comparison

• China: The undisputed volume leader. EV sales share breached the 50% mark for the first time in 2025.
• Europe: Continues to surge due to strict CO₂ emission targets. By Q4 2025, European BEV market share hit a record 24%, and demand continued to grow in 2026.
• United States: Experienced aggressive growth to hit a peak of 10.5% market share in late 2025. However, the removal of certain tax credits caused a market readjustment, and sales slowed down in early 2026.

Pakistan’s EV Sales & Growth

Electric four-wheeler (car) sales volume in Pakistan remains relatively low compared to conventional vehicles, capturing a fraction of the total market, though monthly EV sales surged by 61% and 322% for two-wheelers due to high fuel costs and government incentives.

• Current Volume: Traditional Internal Combustion Engine (ICE) vehicles continue to dominate the passenger car market, recording 109,655 units sold during the first nine months of the FY26 (a 45% increase). Monthly electric car sales, while showing explosive percentage growth, still represent smaller absolute volumes (e.g., rising to 53 units in March).
• Growth Trends: In a single month, conventional car sales dipped by 9% MoM, whereas electric vehicle sales jumped by 61% MoM.
• Market Expansion: Localized options are expanding, with popular EVs like the Honri Ve assembled locally and major global players like BYD entering the market with models like the Atto 3 and Seal.

Two-Wheeler Growth & Volume

• Current Volume: The electric two-wheeler segment is expanding at a much faster rate, quickly capturing over 10% of monthly vehicle sales in the country.
• Growth Trends: Sales for electric two-wheelers surged by 322% year-on-year by mid-Q2 2026, with year-to-date registrations reaching 90,416 units.

Q & A Before Buying EV

Electric Vehicle (EV) in Pakistan is highly practical for daily urban commuting, allowing you to bypass volatile petrol prices while enjoying lower maintenance costs. The most critical questions to ask before buying an EV.

1. Do you have a dedicated parking space with a power outlet?

Charging at home is the most convenient and cheapest way to power your EV. Relying entirely on public charging stations will cost significantly more.

If you live in an apartment, make sure your housing society or union allows you to install a dedicated wall box. Ideally, having a home solar setup will reduce your running costs to almost zero.

2. Can the vehicle charge on the CCS2 standard?

The Combined Charging System 2 (CCS2) is the de-facto standard being deployed across Pakistan’s charging networks.

If you are buying an imported vehicle or a grey import, ensure it comes with a CCS2 adapter, otherwise, you will struggle to use commercial fast-chargers.

3. What is the vehicle’s real-world range?

Ranges are typically calculated under ideal European/Chinese conditions. Real-world range in Pakistan drops due to heavy stop-and-go city traffic and constant air-conditioning usage during the summer.

Check the WLTP or CLTC rating of the car and expect roughly (15 \div 20\%\) less range in actual Lahore or Karachi city driving.

4. Who will service the car and honor the warranty?

EVs are essentially computers on wheels. They don’t require oil changes, But inverters, software, and high-voltage battery packs require certified technicians.

5. What are the tax incentives and registration costs?

The government promotes EV adoption through the NEV Policy, offering significantly lower token taxes and just a 1% import/registration tax on EVs.

With non-filer restrictions being enforced, make sure your tax status is updated before buying to avoid massive penalties at the time of registration.

6. Do you travel inter-city frequently?

Pakistan’s EV charging infrastructure along major highways (like the M-2 Motorway) is expanding, traveling from Lahore to Karachi or into the northern areas still requires careful route planning.

If an EV is your only family car and you take frequent road trips, consider a REEV (Range Extended Electric Vehicle), which offers electric driving for driving and a petrol engine for Battery Charging.

7. How does charging cost?

Charging your EV at home or your workplace is vastly cheaper, but commercial fast-charging networks charge a premium.

NEPRA sets off-peak subsidized residential rates (around Rs. 24/kWh), whereas commercial fast-charging can range between Rs. 100 to Rs. 130/kWh.

3. Costs & Incentives

• Are PHEVs more expensive than traditional cars? Yes, PHEVs generally have a higher upfront cost due to the dual powertrain (battery + engine).
• What incentives are available? Check for federal, state, or local tax credits or rebates for purchasing a PHEV, which can help offset the higher purchase price.
• Are there insurance perks? Some insurers offer discounts for driving electric vehicles (including PHEVs), recognizing their efficiency and technology. 

4. Maintenance & Reliability

• How does maintenance differ? PHEVs typically need less maintenance than traditional cars (e.g., less brake wear due to regenerative braking). However, they still require engine maintenance (oil changes, etc.), although often less frequently.
• How long does the battery last? Most manufacturers offer 8-year/100,000-mile warranties on high-voltage batteries, giving significant peace of mind. 

5. Potential Drawbacks

• Reduced Cargo Space: The battery pack can occupy space, reducing trunk or cabin space in some models.
• Winter Performance: Cold weather can reduce the electric-only range significantly.
• Complex Technology: With both a gasoline engine and electric motor, there are more components that could potentially need repair over the long term. 

Runing Cost Saving EV Vs ICE

Electric Vehicles (EVs) save on running costs primarily through drastically cheaper “fuel” (electricity versus gasoline/diesel) and significantly lower ongoing maintenance.

1. Fuel (Electricity vs. Petrol)

• Energy Cost: Charging an EV is generally (50% – 70%) cheaper per kilometer than refueling an internal combustion engine (ICE) car.
• Home Charging: Charging during off-peak hours at home offers the biggest savings, dropping the cost-per-mile to a fraction of gas prices.
• Efficiency: Electric motors convert over (85%) of their energy into movement, compared to gas engines which only convert about (20% – 30%).

2. Maintenance

• Fewer Moving Parts: An EV has significantly fewer moving parts than an ICE vehicle. There are no spark plugs, pistons, valves, or mufflers.
• No Fluid Changes: EVs do not require routine engine oil changes, transmission fluid flushes, or coolant replacements.
• Less Brake Wear: Thanks to regenerative braking (where the motor slows the car and generates power to recharge the battery), brake pads and rotors last much longer than on traditional cars.

3. Total Cost of Ownership (TCO)

While EVs are often cheaper to operate, total savings depend on where you live and how you drive. Be mindful of the following trade-offs

• Tires: EVs are heavier than gas cars due to the battery, which can cause tires to wear out slightly faster if you do not opt for durable, EV-specific tires.
• Depreciation: Fast-paced technology upgrades mean that some EVs may depreciate a bit faster than standard cars, which is why leasing is often a popular way to stay protected from older tech.

Last Wording

Talking about EVs, this chapter will be incomplete without mentioning Two Wheelers and Three Wheelers. It seems these both vehicles will pay a major role in the development and adoption of EVs in Pakistan, so we will write next article on Two-Wheeler Electric Vehicles. Stay connect with Automark and say with us “Grow Automotive than Grow Pakistan”.

Exclusive written for Automark Magazine, June 2026
By Mumtaz Hussain