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Nissan to export EVs from China starting next year

Nissan is reportedly set to begin exporting electric vehicles (EVs) from its Chinese factories to Southeast Asia, the Middle East, and other regions starting in 2026. The move aims to leverage Nissan’s existing after-sales service network in these overseas markets.

The struggling Japanese automaker is currently reviewing its global production footprint, with the goal of a rapid business turnaround by selling China-made EVs to other markets.

Among the EVs slated for export is the N7 mid-size sedan, the first EV designed and developed by Nissan’s joint venture in China. The N7, which launched in China in April and became the fastest JV brand reaching 10,000 orders, starts at 119,900 yuan (16,450 USD) and is produced at Nissan’s plant in Guangzhou, Guangdong Province.

The N7’s automotive software incorporates AI technology from Chinese companies. To facilitate exports, Nissan will need to modify the software specifications due to restrictions on Chinese-made AI products in some countries. To develop software for export markets, Nissan has invested in IAT Automobile Technology, a Chinese developer.

On June 25, Dongfeng Motor announced the formation of a joint venture with NCIC (a wholly-owned subsidiary of Nissan) to engage in automotive export business. The joint venture, with a registered capital of 1 billion yuan (140 million USD), will see Dongfeng Motor contribute 400 million yuan (40% stake) and NCIC contribute 600 million yuan (60% stake).

According to Chinese media XHBY, Nissan believes that the competitively priced EVs manufactured in China will attract overseas orders. Additionally, Nissan plans to introduce other EVs and plug-in hybrid vehicles in the Chinese market, including its first electric pickup truck by the end of this year.

Nissan’s current difficulties are partly attributed to delays in new model launches. In May, the company unveiled a business recovery plan that includes cutting 20,000 jobs and consolidating 17 factories into 10. The company is also working to establish an optimal supply system, positioning EVs as core products for the future.

Source: XHBY

Way Forward: How Pakistan’s Auto Parts Sector Can Go Global — Adopting Taiwan’s Strategy

Pakistan, now over seven decades into its journey as materials import reliant, remains at a critical economic crossroads. One of its most persistent challenges is the inability to boost exports and remaining ignorant of working for imports substitution and reduce dependency on foreign loans. Among the many sectors with unrealized potential, the auto parts manufacturing industry stands out.

As of 2024, the global automotive aftermarket is worth nearly USD 468.91 billion, with projections indicating a climb to USD 589.01 billion by 2030. This market includes everything from bumpers to sensors and batteries—products in increasing demand due to growing vehicle ownership and the transition to electric vehicles (EVs). This trajectory offers Pakistan a timely opportunity. However, to seize it, we must revisit and radically transform our policy framework, execution capacity, and industrial vision, drawing upon lessons from nations that have successfully navigated the same path.

Taiwan: Precision, Policy, and Performance

Taiwan’s strategy is equally adoptable. Initially employing import substitution to nurture its domestic industry, Taiwan soon realized the value of global competitiveness. It transitioned to export-oriented growth, supported by currency devaluation and export rebates. This shift enabled Taiwanese manufacturers to become price competitive globally.

One of Taiwan’s most effective moves was the creation of Export Processing Zones (EPZs). These zones offered tax holidays, streamlined customs, and support for exporters. Taiwan promoted joint ventures with international players, mandating technology transfers and pushing for a 70% localization target in manufacturing—a strategy that elevated local capabilities dramatically.

What sets Taiwan apart today is its specialization in high-tech automotive components. By aligning industrial growth with advancements in electronics and IT, Taiwan became a reliable supplier for EV giants, including Tesla. In fact, 75% of Tesla’s supply chain vendors include Taiwanese firms—a testimony to its high-quality, innovation-driven ecosystem.

Taiwan also dominates the global aftermarket for components like bumpers, lights, sensors, and electronics, exporting over 90% of its total auto parts output. Its government actively promotes the auto sector through global branding, regular participation in international expos, and direct facilitation of B2B linkages.

Why Pakistan Lags—and What Must Be Done

Pakistan has had a stop-start approach. While some policies have aimed at local manufacturing, many lacked continuity, clarity, or execution. Export zones remain underdeveloped and miss-utilized or inaccessible to SMEs. Tariff-based localization policies have often lacked consistency, pushing assemblers to import rather than localize. Moreover, our trade agreements remain underutilized, and public-private collaboration is weak.

The unfortunate reality is that despite decades of effort, Pakistan’s exports haven’t crossed the USD 35 billion mark, while Taiwan— mush less of our  size in population —has surpassed USD 475 billion annually. The underlying difference is a focused commitment to industrialization and global integration.

A Way Forward: A National Export Blueprint

It is imperative for Pakistan to recognize that growing the auto parts industry is not merely about assembling vehicles. It is about developing a parts ecosystem that is competitive, exportable, and aligned with future global demand—especially in electrification and digital mobility. The first step is to phase out blanket import tariffs and replace them with export-performance-linked incentives. This will shift the mindset from protection to competition.

The government must develop Auto Parts Export Clusters with shared R&D facilities, testing labs, low-cost leasing for SMEs, and a single-window clearance system for exporters. A national campaign—“Pakistan Auto Parts Export Mission (PAPEM)”—should be launched, backed by the Ministry of Commerce and Engineering Development Board, to promote Pakistan’s manufacturers at global exhibitions and secure B2B connections abroad.

We need policy coherence. Ministries such as Industries, Commerce, Finance, and Science & Technology must align their objectives to reduce bureaucratic delays and eliminate overlapping jurisdictions that frustrate businesses.

Technology remains a major hurdle. Pakistan must incentivize R&D in vehicle electronics, EV components, and digital control systems.

Finally, it is crucial to tap into diaspora networks and digital trade platforms to link local SMEs to global demand—especially in the U.S., EU, and GCC markets.

Pakistan must now decide whether it wants to remain stuck in survival mode or move boldly toward export-led growth.

Published in Automark’s July-2025 printed and digital edition.

By Mashood Khan – Director – Mehran Commercial Enterprises – Expert Auto Sector / Former Chairman PAAPAM

The Customer as Our North Star: A First Approach Point for Automotive Success

2nd Edition

From Philosophy to Practice: Making “Customer-First” a Reality Across the Automotive Chain

In the last edition, we delved into a reality that is no longer debatable in today’s automotive business: the customer must be the North Star that steers all strategies, decisions, and interactions within our company. We argued that customer-centricity is not just a slogan, but a fundamental belief system, one that distinguishes lasting companies from those pursuing short-term success. But whereas philosophy gives guidance, practice yields outcomes. The inevitable follow-up question is: How do we instantiate this philosophy in practice? What does it look like when the customer-first philosophy goes beyond intention and is realized in real systems, behaviors, and processes? This is where most organizations fall short, not due to a lack of intent, but a lack of translating intent into structure. A customer-first company doesn’t get formed overnight. It is built intentionally and iteratively in every conversation with a purchaser, every product feature crafted, and every service provided after the car drives off the lot.

Laying the First Brick of Perception In the modern car buyer’s world, the initial customer contact seldom occurs at a showroom — it begins online. Marketing is now the first point of contact that formulates perception, creates expectations, and welcomes trust. A customer-centric marketing strategy starts with knowing the frame of mind of the audience. Messaging is not about shoving product capabilities anymore — it has to capture the customer’s pain, dreams, and life. Marketing plans must be based on empathy, not guesswork. Social media, website user experience, digital pamphlets, and content all need to deliver clarity, ease, and relevancy. Customers need to feel noticed, not targeted. Done correctly, marketing becomes the basis of long-term trust, because it begins the relationship with relevancy and respect.

Sales, More Than a Transaction:  It’s a Trust-Building Journey. If marketing primes the pump, then sales is the moment of truth — where interest converts into intent, and talk into action. In an authentic customer-centric mindset, the salesforce isn’t merely a vehicle to sign on the dotted line; it becomes a bridge of trust between the brand and the customer. Today’s car buyers come in more knowledgeable than ever; they have done their homework, compared vehicles, read comments, and know precisely what they’re looking for. The job of the sales staff, then, is not to sell, but to serve,  by thoroughly getting to know the person behind the inquiry. That involves looking beyond the surface. Salespeople need to decipher the lifestyle, motives, priorities, and dreams of each customer. Is the vehicle for family use, daily driving, or weekend getaways? What does reliability mean to this individual? What are their longer-term ownership issues — resale value, parts availability, or accessibility of service? Real value is achieved when the sales discussion is effortless and personalized, never forced or scripted. The dealership setting needs to provide a space for confidence and comfort. From the initial hello to the last sign-on, the tone must be one of respect, patience, clarity, and credibility.

This transformation requires another type of training: Not only the product itself and financing solutions, but also emotional intelligence, active listening, and decision-support coaching. Customers have to leave feeling that they were sold to, but that they were truly heard and enabled to make the optimal decision. Sales success in this new era is not solely a function of booking numbers. It is indicated by how many customers are back for a second purchase and how many recommend the dealership to family or friends. This is also being discussed and considered with high priority that how many leave the premises with a smile of confidence, not just a receipt. In the end, every sale is more than a transaction — it’s the beginning of a long-term relationship, and the way it begins will decide how long and how strong that relationship becomes.

After-Sale the Real Battleground of Loyalty: While marketing and sales bring the customer to know the brand, after-sales determine whether they’ll ever return. That is where customer-first thinking is put to its ultimate test, and where it is most important. Aftersales is not service alone, it’s relationship management at its best. The customer, past the honeymoon stage of a new car, requires consistent, responsive, and respectful support. On-time service reminders, on-time service tracking, online booking, transparent updates — these are not indulgences; they are expectations. When a customer complains or has a concern, that is not a burden — that’s a chance. How a team listens, answers, and resolves the problem defines the integrity of the brand in the customer’s head. Even something small — a call-back, an apology note, a fast fix — has a value greater than any paid message. Most critically, this is also the optimum listening post a company can have. All customer contacts, every complaint posted, and every review published are feedback from the front lines. Aftersales teams need to collaborate very closely with sales, marketing, and even production to close the loop and feed that back into action. Brands that do well in after-sales not only create satisfaction, but they also establish confidence. And confidence begets loyalty.

Enablers Behind the Curtain: Even if production and quality departments do not deal with customers directly, their contribution in a customer-centric business is unquestionable. Each defect-free car delivered, each feature added, each failure studied and averted — it all contributes to a more efficient customer experience. Most importantly, the production, quality, and service departments need to become responsive to customer complaint data gathered through aftersales and dealer channels. If customers are frequently complaining about a given part, feature, or design, the production and quality role is not only to make it better, but to know why it didn’t work in real-world applications and how to prevent it from happening in the future. This involves the embracing of customer feedback as a strategic input, not merely a complaint log. Whether ride comfort, durability, or long-term reliability, the ultimate goal is always the same: creating vehicles that mirror what customers value, not merely what can be engineered.

Takeaway from this Article:

When we step beyond the philosophy of being customer-focused and start framing every process, every decision, and every job around this value, we are no longer simply a manufacturer — we are a partner along our customer’s journey. The change is not in slogans, but in systems. It is not merely in what we say, but in what we build into the very fabric of our day-to-day operation. In Pakistan’s dynamic car market, the winners will not be those who just talk about customers, but those who quietly, persistently practice it, from the sketchpad to the showroom floor, from aftersales care to online engagement.

That’s how trust takes root.
That’s how loyalty turns into legacy.
And that’s how a customer-first vision becomes a lasting competitive edge.

This exclusive article has been published in Automark’s July-2025 printed and digital edition. Written by @muhammad-rafique

Grow Automotive Grow Pakistan Learning from Past – Earning from Present Growing from Future

Episode: 4

Summary of the Last Articles

In the previous article, we mentioned the countries that have achieved economic development through the auto industry. Auto industry has given immense industrial and economic development to America, Europe, Japan, and Korea and included them in the list of developed countries in the world. China is a living example of this, while Pakistan’s development is also inseparable from the auto industry.

Then we reviewed the auto market trend in Pakistan in particular and the rest of the world in. SUVs are being liked for many reasons. Then we reviewed the businesses related to EV vehicles and the potential opportunities for many more new businesses that can be started.

In the last article we had looked on the past of EV and find that the auto industry started with EV vehicles maintained their place in market for a few decades until the end of World War II and IC engine vehicles made progress and left the EV industry behind. We reviewed that EV history to development of the current and future auto industry.

Now Read On….

The Future: A World of Electric Mobility

Today, electric vehicles are at the forefront of the automotive industry, with continued advancements in technology and growing consumer demand driving the market forward. The future of electric vehicles looks promising, with several key trends shaping the landscape:

  • Autonomous Electric Vehicles: The development of autonomous driving technology is expected to integrate seamlessly with electric vehicles, creating a new era of self-driving electric mobility.
  • Sustainable Manufacturing: Automakers are increasingly focusing on sustainable practices in the production of electric vehicles, from sourcing materials to recycling batteries.
  • Global Expansion: The adoption of electric vehicles is growing rapidly worldwide, with emerging markets playing a crucial role in the global transition to electric mobility.
  • Energy Integration: Electric vehicles are becoming an integral part of the broader energy ecosystem, with innovations in vehicle-to-grid technology enabling cars to support renewable energy grids.
  • The first mass-produced: Electric car, in the modern sense, was the General Motors EV1, released in 1996. However, the first mass-produced hybrid car, the Toyota Prius, was introduced in Japan in 1997. 
  • Toyota released: The first mass market electric car in Japan, 1997. They used a new nickel-metal hydride battery which they still use in their cars today. The Toyota Prius quickly became a popular model of car due to fuel prices rising once again and the public’s growing awareness of pollution.
  • The exciting thing: About technology is that it’s ever evolving. By the time we entered the 2000s, the technology was in place to create an electric car which meant car manufacturers could start focusing on the design.
  • Tesla hit the market: With a luxury electric car which challenged the leading sports car brands. Its popularity showcased a new desire for electric cars that we hadn’t seen before – electric cars are not only needed, but wanted.

Current Scenario & Future of electric cars

The popularity of Hybrid & Electric cars is growing due to a number of reasons:

1. Hybrid & Electric Cars becoming more affordable,

2. Charging stations increasing continuedly.

3. Hybrid cars synchronizing the electric vehicles till wide expansion infrastructure

4. Quick home electric chargers coming with cars and available in local markets

5. Every car maker and assembler introducing new models with Hybrid, Plug-in Hybrid and EVs

6. A greater awareness of our environmental impact.

Electric Bikes and Scooters

However, it’s not just cars benefitting from the electric revolution with electric bikes and scooters also becoming more common. As the world continues to look towards more sustainable energy sources, electric vehicles are only going to become more popular, and with greater demand, comes a greater supply, with more hybrid and electric cars hitting the market.

EV and hybrid market in Pakistan

The electric vehicle (EV) and hybrid market in Pakistan has seen growth since 2015, driven by government policies, environmental concerns, and rising interest from consumers. While EVs are still in their early stages of development in Pakistan, hybrid vehicles have gained popularity for their fuel efficiency. 

Hybrid Vehicles:

  • Market Growth:

Hybrid vehicles like the Honda Vezel, Toyota Prius, and Aqua have become increasingly popular in Pakistan, driven by their perceived fuel efficiency and the potential to reduce fuel costs. 

  • Demand:

The demand for hybrids is rising due to stringent emission regulations and the growing awareness of environmental issues. 

  • Local Assembly:

Some manufacturers have begun assembling hybrid vehicles locally, potentially reducing import duties and making them more affordable. 

  • Best Examples:

MG, Haval, Toyota, Honda, Kia, Hyundai, Deepal, BYD and some more companies introduced or introducing near future are expanding their EV offerings, curiosity among environmentally conscious consumers in Pakistan

Growing Interest:

Pakistan has seen a budding interest in EVs, with initiatives like the Electric Vehicle Policy 2021 aimed at reducing import duties and making them more affordable.  

New Energy Vehicle Policy 2025

  • The New Energy Vehicle Policy 2025 aims to address challenges in EV adoption and production, with ambitious targets for transitioning to clean energy in the transport sector.

As per available information indifferent media. The Federal Minister For Finance And Revenue Muhammad Aurangzeb chaired a meeting on the New Energy Vehicle Policy 2025.

  • The policy aims to address key challenges in the adoption and production of electric vehicles and sets ambitious targets for transitioning to clean energy in the Transport Sector.
  • Secretary Industries & Production delivered a detailed presentation outlining the current state of the Electric Vehicle Industry.
  • The presentation emphasized policy interventions to ensure smooth adoption of NEVs in line with national priorities.
  • Discussions focused on overcoming barriers to electric vehicle production and adoption, improving manufacturing processes, addressing infrastructure needs, necessary policy corrections to streamline EV production, addressing supply chain issues, and encouraging private sector investment.
  • The Finance Minister stressed the importance of the timely development and implementation of the NEV Policy 2025-30 .
  • The meeting concluded with a commitment to expedite efforts for the successful implementation of the NEV Policy, paving the way for a cleaner, greener, and more sustainable future for Pakistan.

Policy Support and Challenges

The National EV policy has set EV market penetration targets, aiming for 30% of new passenger vehicle sales and 50% of two, three-wheelers and buses by 2030. 

  • Challenges:

Challenges to EV adoption include the lack of charging infrastructure, high costs, and limited domestic EV production.   

  • Global Battery Costs:

The cost of batteries, which is a major component of EV prices, will impact their affordability. 

  • Localization of Supply Chain:

Developing a local supply chain for EV parts can reduce costs and promote domestic production. 

  • Public Awareness:

Raising awareness about the benefits of EVs and dispelling misconceptions is important for increasing consumer demand. 

  • Price Competitiveness:

The cost of EVs needs to be competitive with traditional vehicles to attract more consumers.

Electric Busses Future in Mass Transit 

Pakistan is actively transitioning to electric buses for its public transportation, with a focus on Lahore and other cities in Punjab. The Punjab government launched the first electric bus service in Lahore in February 2025, and has plans to add more e-buses to the fleet and expand the service to other cities. This initiative aims to provide a more sustainable and affordable public transport system. 

Key developments in Pakistan’s electric bus program:

  • Lahore’s Electric Bus Service:

The Punjab government launched the “Welcome to Maryam Nawaz Sharif Green Punjab” electric bus service in Lahore, starting from the Railway Station to Green Town. The pilot project initially included 27 e-buses, with plans to add 500 more by August. 

  • Expansion to other cities:

The Punjab government has approved the introduction of 1,500 electric buses in six districts, including Sargodha, Sheikhupura, Sialkot, Gujrat, Rahim Yar Khan, and Dera Ghazi Khan. The first phase will see 380 electric buses introduced in Lahore and Gujranwala. 

  • Infrastructure Development:

Charging stations are being established to support the e-bus fleet, and a modern transport command and control tower is planned for Lahore. 

  • Benefits of electric buses:

The Punjab government is promoting electric buses as a “cheap and modern” public transport system, offering benefits such as free Wi-Fi, mobile charging ports, and CCTV cameras. 

  • Other initiatives:

The Sindh government also plans to add 100 pure-electric buses to its public transportation system, with Karachi being a potential test case for their deployment. Daewoo Express has also expressed interest in introducing inter-city electric buses in Pakistan. 

  • Government support:

The Punjab government is subsidizing the fare for passengers, and offering free travel to senior citizens, differently-abled individuals, and students. 

Let’s make a conclusion to follow them

We have extensively studied electric vehicles in our past and present articles, not only the present but also the past of electric cars, and in light of this, we have also examined the current and future situation of electric cars. Therefore, we should adopt innovation. Survival lies in adopting innovation. Through electric vehicles, we can improve our environment, our economy, and our living standards. Also, we can set the new upcoming automotive industry’s business goals in a timely manner.

There are never end to explore new ways of progress in Automotive sector. Stay connect with modernity, businesses and Monthly AUTOMARK, then say together Grow Automotive Grow Pakistan, INSHALLAH.

Growth and Geopolitics Considerations for Pakistan’s Automobile Industry

Introduction

Dear Readers Pakistan’s automobile industry stands at a pivotal juncture. In recent years, the sector has witnessed notable growth, with a mix of domestic investments, joint ventures, and the entry of new players. However, this progress coincides with complex economic challenges and a volatile regional geopolitical landscape. The government’s annual budget, therefore, carries significant weight in shaping the trajectory of the automotive sector—not just as an industrial engine, but as a critical pillar of economic resilience and strategic independence.

To strike a balance between growth, sustainability, and national interests, the government must carefully evaluate fiscal policy, industrial support, regional geopolitics, and consumer dynamics. This article explores key factors that policymakers should prioritize to empower Pakistan’s automobile sector in the 2025–26 budget.

1. Macroeconomic Stability: The Bedrock for Industrial Planning

The automobile industry is highly sensitive to macroeconomic indicators—especially interest rates, inflation, and currency volatility. Pakistan’s recent history of rupee depreciation and high inflation has severely impacted car prices and demand, making locally produced vehicles unaffordable for the average consumer.

Recommendations:

  • Stable Exchange Rate Policy: To maintain investor confidence and protect domestic manufacturers from raw material cost shocks (most components are imported), the budget must support policies aimed at currency stabilization.
  • Inflation Control Measures: Strengthening monetary-fiscal coordination can help curb inflation, making vehicle financing more accessible and sustaining consumer demand.
  • Auto Financing Incentives: Reintroducing low-interest auto loans—particularly for small vehicles and electric bikes—could stimulate demand without excessive subsidy burdens.

2. Incentivizing Localization and Value Addition

Despite existing automobile assemblers in the country, Pakistan largely remains an importer of Completely Knocked Down (CKD) kits. The localization of components remains modest, limiting value addition and domestic employment generation.

Recommendations:

  • Phased Localization Roadmap: Introduce budgetary incentives tied to component localization targets over a 3–5 year horizon. Firms that achieve higher local value addition should be rewarded with tax credits, reduced customs duty, or R&D grants.
  • Support to Local Vendors: Allocate budgetary support for training and upskilling local auto part manufacturers through public-private partnerships. Establishing specialized industrial zones for parts suppliers can create an ecosystem similar to Thailand or Vietnam.
  • Technical Support Programs: Through coordination with engineering universities and global technical partners, provide grants for prototyping and material research to improve domestic capabilities.

3. Fiscal and Tariff Reforms: Balancing Protectionism with Competitiveness

The current duty structure in Pakistan often protects domestic assemblers without ensuring global competitiveness or consumer welfare. While protection is needed for nascent industries, unchecked tariff walls may lead to inefficiency and reduced innovation.

Recommendations:

  • Tariff Rationalization: Streamline the current structure by offering reduced tariffs on import of high-efficiency technologies, hybrid systems, and precision tools. At the same time, discourage the import of luxury vehicles that strain foreign reserves.
  • Predictable Tax Policy: Introduce a long-term auto sector fiscal policy (at least 5 years) to prevent frequent shifts in duties and levies. This ensures certainty for investors and supports strategic planning.
  • Tax Holiday for EV Startups: A time-bound tax holiday for local electric vehicle (EV) manufacturers can act as a stimulus to encourage early adoption and domestic innovation.

4. Integration with CPEC and Regional Trade

The China-Pakistan Economic Corridor (CPEC) offers a strategic opportunity to integrate Pakistan’s auto sector into regional value chains. With improved logistics and infrastructure, Pakistan can aim to become a manufacturing hub for both domestic and export markets.

Recommendations:

  • Special Auto Zones under CPEC: Establish automobile-focused special economic zones (SEZs) in proximity to Gwadar and other trade hubs to attract Chinese and regional investments.
  • Transit Trade with Central Asia: The budget should earmark funds for developing road and rail connectivity to Afghanistan and Central Asia to facilitate future exports of low-cost vehicles and parts.
  • Regional Trade Agreements: Accelerate negotiations under ECO and SCO to reduce tariffs and enhance regulatory coordination for auto-related goods.

5. Green Transition and Environmental Standards

The global automotive industry is transitioning toward green technologies, and Pakistan must not lag behind. The environmental cost of traditional combustion engines, coupled with rising oil import bills, necessitates a structured shift toward cleaner mobility.

Recommendations:

  • EV Infrastructure Development: Allocate funding in the budget for nationwide EV charging infrastructure, especially in major urban centers and highways.
  • Subsidies for EV Buyers: Provide targeted subsidies for electric two-wheelers, three-wheelers, and small electric cars to encourage mass-market adoption. Coordinate with local banks for EV-specific financing schemes.
  • Enforce Emission Standards: Gradually enforce Euro-5 or better emission standards for all new vehicles sold, with compliance-linked tax incentives for manufacturers.

6. Consumer Affordability and Demand Generation

In Pakistan, the automobile-to-population ratio is significantly lower than regional counterparts, indicating latent demand. However, high vehicle prices and stagnant incomes have dampened purchasing power.

Recommendations:

  • Support for Low-Income Consumers: Consider offering voucher schemes or interest-free loans for bikes and small family cars, especially for women, students, and gig workers (e.g., delivery riders).
  • Used Car Market Regulation: While importing used cars can provide affordability in the short run, excessive inflows hurt local industry. Rationalize the used car import policy, while encouraging certified used vehicle programs by domestic players.
  • Auto Leasing Regulations: Encourage development of regulated vehicle leasing platforms, particularly for SMEs and rural areas where transport infrastructure is limited.

7. Investment Protection and Ease of Doing Business

Foreign and domestic investors in the automobile sector demand stability, transparency, and legal protections. Unanticipated regulatory changes and bureaucratic delays deter long-term investments.

Recommendations:

  • Investment Dispute Resolution Mechanism: Establish a dedicated auto industry ombudsman or dispute resolution tribunal to address grievances swiftly.
  • Simplify Regulatory Approvals: Implement a single-window digital clearance system for factory establishment, imports, and certifications.
  • IP Protection and Quality Standards: Strengthen legal frameworks around patents, designs, and branding to ensure fair competition and encourage R&D.

8. Human Capital and Workforce Development

A robust auto industry depends not only on infrastructure but on skilled labor. As vehicle technologies evolve, workforce training must keep pace to meet production and maintenance needs.

Recommendations:

  • Vocational Training Programs: The budget should include allocations for automotive-specific technical training, in collaboration with NAVTTC and the private sector.
  • University Collaboration: Establish industry-academia programs focusing on automotive electronics, AI integration in vehicles, and mechatronics engineering.
  • Gender Inclusion: Promote programs to include women in technical and managerial roles in the auto sector, through dedicated scholarships and workplace reforms.
  • 9. Strategic Autonomy in Geopolitical Context

In light of evolving regional geopolitics—such as U.S.-China trade tensions, instability in Afghanistan, and shifting Gulf dynamics—Pakistan must build strategic autonomy in its industrial capabilities.

Recommendations:

  • Diversify Supply Chains: Encourage the sourcing of parts and raw materials from a broader range of countries, reducing dependency on a single trade partner.
  • Defense-Auto Synergy: Explore synergies between defense manufacturing and civilian auto sectors, particularly in armored and utility vehicle segments.
  • Export Incentives for Strategic Partners: Identify friendly countries (e.g., African nations, Central Asia, and Gulf countries) for export push, with budgetary support in terms of marketing, trade missions, and soft loans.

10. Public Transport and Mobility Strategy

While individual car ownership is rising, Pakistan still lacks a robust public transport system. A thriving local industry can support mass transit solutions if appropriately guided.

Recommendations:

  • Local Bus Manufacturing: Provide subsidies and R&D support for manufacturing electric and hybrid buses locally, to be deployed in cities like Karachi, Lahore, and Islamabad.
  • Government Procurement Quotas: Allocate a share of public procurement contracts (e.g., police vehicles, ambulances, garbage trucks) to local manufacturers.
  • Smart Mobility Projects: Use budget allocations to pilot smart urban mobility projects integrating ride-sharing, electric bikes, and digital transport platforms.

Conclusion

The automobile industry in Pakistan is not merely a consumer-driven sector; it is a strategic industry at the crossroads of economic development, technological transformation, and geopolitical positioning. In crafting the annual budget, the government must adopt a holistic, forward-looking approach that balances industrial growth with affordability, sustainability, and resilience.

While existing investments and potential partnerships offer a promising base, policy clarity and consistency are essential to unlock long-term gains. A dynamic, inclusive, and strategically guided automobile policy—supported by a robust fiscal framework—can not only drive the economy forward but also bolster Pakistan’s stature in the global industrial landscape.

This exclusive article has been published in Automark’s July-2025 printed and digital edition. Written by @Aqeel Bashir

How Japanese Automakers Are Teaming Up withChinese EV Giants — and Why Pakistan Must Act Now to Join the Global EV Supply Chain

The global electric vehicle (EV) industry is evolving at breakneck speed, with alliances between Japanese automakers and Chinese EV tech firms setting the tone for a new era of cooperation. This wave of strategic joint ventures reflects a clear reality: EV leadership is now rooted in

China, and global players are aligning with this shift to stay competitive.

Yet, while these developments reshape mobility worldwide, Pakistan remains largely absent from the global EV supply chain—a missed opportunity that could become a major economic setback.

Global Alliances: Japanese Automakers & Chinese EV Giants

Here are key partnerships redefining the global auto landscape:

  • Toyota & BYD: Co-developing BEVs like the bZ3, combining Japanese quality with Chinese battery and motor expertise.
  • Toyota & FAW: Launching new localized BEV models such as the bZ3C crossover and bZ3X SUV for the Chinese market.
  • Mazda & Changan: Introducing EVs like the EZ-6 and Arata, both developed in China under their joint venture.
  • Nissan & Dongfeng: Investing ¥10 billion by 2026 to expand local EV production and innovation in China.
  • Honda & DeepSeek: Integrating Chinese AI into future EVs for enhanced autonomous and driver-assist features.

The Global Supply Chain Shift — Where is Pakistan?

Despite having favorable demographics, policy frameworks, and a growing interest in EV adoption, Pakistan has not yet established itself as a meaningful part of the global EV value chain.

The key challenges:

  • Lack of EV parts localization

  • Inconsistent policy execution
  • Underdeveloped vendor ecosystem
  • Limited foreign direct investment (FDI)

Meanwhile, countries like Thailand, Vietnam, and Indonesia are actively working to position themselves as next-generation EV manufacturing hubs—especially to serve markets looking for alternatives beyond China.

Pakistan’s Strategic Advantage — The China Factor

However, Pakistan has one unique geopolitical advantage: its strategic alignment with China.

As the global EV market begins to bifurcate—with China on one side and the Western world on the other—Pakistan can strategically position itself as a bridge and an extension of China’s EV supply chain for exports to Africa, the Middle East, and even Europe.

Why This Matters:

  • China already leads in batteries, motors, electronics, and software for EVs.

·         Pakistan has strong trade ties, CPEC infrastructure, and political alignment with China.

  • Japan, Korea, and Europe may soon seek alternate regional bases for EV component manufacturing due to global tensions and rising costs in China.

This opens the door for Pakistan to become a secondary hub or complementary base for global EV supply and production—if it acts fast.

Policy Direction: What Pakistan Must Do Now

To seize this opportunity before it is overtaken by regional competitors like Thailand, Pakistan must:

1.      Develop and enforce a strong, long-term EV industrial policy
  • Include clear roadmaps for EV part localization, vendor development, and supply chain integration.
2.      Establish EV manufacturing clusters or special economic zones (SEZs)
  • Equipped with charging infrastructure, R&D labs, and incentives for FDI.
3.      Leverage CPEC and Chinese partnerships to co-develop EV components


  • Batteries, power electronics, controllers, and motor systems.
4.      Invest in skill development and technical training
  • Enable the local workforce to meet international quality and compliance standards.
5.      Collaborate with global OEMs and Tier-1 suppliers
  • Offer Pakistan as a low-cost, strategically located manufacturing base.

Key Takeaway: Be the Next EV Hub Before Others Do

The global EV race is intensifying, and Pakistan stands at a strategic crossroads. While China’s dominance in EV technology and supply chains is firmly established, Pakistan has the unique chance to align closely with China and integrate itself as a vital player in this ecosystem. Doing so would enable Pakistan to benefit from knowledge transfer, component manufacturing, and regional exports.

Meanwhile, a geopolitical divide is emerging—with China leading one side and Western

markets forming the other. This presents a critical opening for Pakistan to position itself as a neutral bridge and an attractive export base, capable of serving both sides with competitively priced EV components and vehicles.

As Japan deepens its partnerships with Chinese EV firms, Pakistan can step in as a

complementary manufacturing base, offering low-cost production, proximity to China, and regional access to South Asia, the Middle East, and Africa.

However, Thailand and ASEAN nations are already moving fast, attracting EV investments through clear policy, infrastructure, and incentives. If Pakistan delays, it risks being left behind as these nations become the preferred global supply chain hubs after China.

Currently, Pakistan’s role in the global EV landscape is marginal. But with strategic vision, consistent policy implementation, and bold action, Pakistan can scale up to become a regional EV hub—one that serves not just local demand but supports global automakers in building the future of electric mobility.

The opportunity is real; the timing is critical—and the window is closing fast.

This exclusive article has been published in Automark’s July-2025 printed and digital edition. Written by @asif-mehmoodsif

China’s Chery aims Omoda 9 PHEV at BYD, Skoda, premium rivals

China’s Chery Automobile is counting on conquest sales from both volume and premium customers with the Omoda 9, a well-equipped, competitively priced midsize SUV from one of its two main European brands.

Chinese brand Omoda has begun sales of the Omoda 9 midsize plug-in hybrid SUV in its core European markets as its parent Chery tries to pivots away from gasoline cars.

The Omoda 9 sits above the Omoda 5 compact SUV and comes with a large 34-kilowatt hour battery to give an electric-only range of 145 km (93 miles)

It is 4770-mm long and will compete against plug-in hybrid versions of the Skoda Kodiaq, Toyota RAV4, BYD Seal U and Mazda CX-60 in Omoda’s European markets of Spain, the U.K., Poland and Italy.

Chery was the fastest growing Chinese automaker in Europe in the first two months with sales of 8,000, up 4,271 percent on the year before, according to figures from market researcher Dataforce.

Chery’s growth has mainly come from gasoline models, which accounted for 78 percent of the company’s sales.

Chery sells gasoline versions of the Omoda 5 and Jaecoo 7 compact SUV. Jaecoo also offers a plug-in hybrid version of the Jaecoo 7, using an 18 kilowatt-hour battery. The Omoda 5 also available as an all-electric model.

Omoda 9 gets lots of standard equipment

Chery will offer one version of the Omoda 9 plug-in-hybrid with a long list of standard equipment, including technology usually restricted to higher-grade models such as a head-up display, a 1.3-meter-long sunroof, heated and ventilated seats front and rear, and a 14-speaker Sony stereo system.

The dashboard is dominated by a large curved 24.6-inch information panel that incorporates a touchscreen.

The so-called Super Hybrid System (SHS) packages a 143 hp, 1.5-liter gasoline engine and three electric motors to give a claimed combined power output of 443 hp. Omoda says the car will accelerate from 0 to 100 kph (62 mph) in 4.9 seconds.

One of the three motors is mounted on the rear axle to give the car all-wheel-drive capability. Different driving modes including Eco, Normal, Sport, Mud, Snow and Off-Road change the way the power is delivered.

The car is priced at 44,990 pounds ($58,220) in the U.K., Chery’s second largest market in Europe after Spain. The price is pitched above the entry Skoda Kodiaq iV plug-in hybrid at 41,935 pounds (€54,000), with the Omoda aiming to tempt customers with more power and equipment.

The Omoda 9 will be followed by the Omoda 7 SUV that slots below but above the 5, Chery U.K. head Victor Zhang told Automotive News Europe last year, without giving timings. A small SUV badged 3 will follow after the 7, Zhang said.

The Omoda 9 will be followed by the Omoda 7 SUV that slots below but above the 5, Chery U.K. head Victor Zhang told Automotive News Europe last year, without giving timings. A small SUV badged 3 will follow after the 7, Zhang said.

Omoda and Jaecoo are Chery’s export brands. The company has recently said it would offer its Tiggo brand in select eastern European markets, starting with the midsize Tiggo 8 plug-in hybrid . Models in the Tiggo range are also sold under the Italian DR brand as well as Ebro in Spain.

Chery aims to become a plug-in hybrid leader in Europe, the company has said. Plug-in hybrids are not subject to the same tariff increases recently applied to Chinese built-EVs by the European Union and are increasingly being offered by Chinese brands as a way to lower their average CO2 as EV sales are constrained by the tariffs.

HUBCO Green expands its NEV charging network to Lahore-Islamabad Motorway in partnership with PSO

HUBCO Green (Private) Limited (HGL), a subsidiary of The Hub Power Company Limited (HUBCO), in a transformational partnership with Pakistan State Oil (PSO) inaugurated its first state-of-the-art New Energy Vehicle (NEV) Charging Station on Lahore-Islamabad Motorway (M-2), one of the busiest travel corridors of Pakistan.

As part of its strategic entry into the NEV market through BYD Pakistan – Mega Motor Company (MMC), HGL has a long-term plan to develop a nationwide NEV charging infrastructure. HGL will deploy a network of chargers every 200 km from Karachi to Peshawar, alleviating range anxiety for NEV users and promoting environmental sustainability.

Along with HGL’s EV Charging Station, this PSO Experience Hub on Magic River Rest Stop also features a Vibe Café and Store to provide customers with a space that offers both comfort and convenience while their vehicles recharge.

Speaking at the launch event, Mr. Kamran Kamal, CEO, HUBCO, stated: “HUBCO Green is a strategic extension of our long-term view on where the country’s mobility landscape is headed. At the heart of our mandate is a commitment to promote sustainability and an environmentally responsible automobile sector. Our focus is on building NEV charging infrastructure where it matters most, creating value with the right partners and at the right scale.This strategic partnership with PSO is a step in operationalizing that vision. With the inauguration of this NEV charging station, we reaffirm our commitment to a cleaner, greener Pakistan.”

Also present at the event, Mr. Danish Khaliq, VP Sales & Strategy, BYD-MMC said: BYD, the world’s No. 1 NEV manufacturer, entered the Pakistan market with a vision to drive electric mobility and sustainability in the country’s automobile sector. Following the installation of charging stations in key urban cities, this launch marks the first of many in our long-term plan to develop a nationwide charging network along intercity routes, enabling NEV users to travel long distances with ease and convenience. Our advanced technology supports fast charging, significantly reducing wait times for travelers on long-haul journeys. This partnership with PSO reflects our commitment to supporting Pakistan’s transition to NEV adoption and ensuring the country is future-ready.”

Mr. Mohsin Mangi, CSTO, PSO, asserted: “At PSO, we’re driving Pakistan’s energy transformation. Our partnership with HUBCO Green is a major milestone toward sustainable mobility. By turning our widespread retail network into clean-energy hubs, we’re preparing the foundation for a smarter, more environmentally friendly Pakistan. The launch of this EV charging station isn’t just about technology, it reflects our commitment to protecting the environment and serving today’s traveler. And we’re not stopping at EVs. With VIBE, we’ve introduced modular, SEED-certified convenience stores connected to our e-commerce platform, designed for seamless, sustainable retail on the move. VIBE Café offers barista-quality coffees and artisanal treats for those little moments of indulgence. Through Asaan Safar, we’re enhancing travel comfort with executive amenities along key routes, all coordinated through the Fuelink app. Each of these projects is part of one clear goal: to support every traveler, with cleaner energy, elevated services and genuine care.”

The station features a 60kW fast charger that can simultaneously charge two vehicles, delivering a 50% charge, for instance, to the BYD Atto 3 in less than 30 minutes, which is equivalent to 160–200 km, ideal for staying powered up while on the go.

Leveraging HUBCO’s focused ambitions in the NEV sphere through BYD-MMC and with PSO’s vast retail footprint, HGL lays the groundwork for a reliable, countrywide NEV charging network that supports Pakistan’s evolving mobility needs and its broader environmental goals.

Sindh farmers urge FBR to cut tractor duties in budget 2025-26 to boost agriculture

Farmers in Sindh are urging the Federal Board of Revenue (FBR) to reduce customs duties and sales tax on tractors in the upcoming 2025-26 federal budget. The Sindh Chamber of Agriculture (SCA) has requested that the customs duty on imported tractors be lowered from 15% to 5% to ease financial pressure on the struggling farming community.

In a formal proposal submitted to FBR Chairman Rashid Mahmood, the farmers also called for a reduction in the sales tax on both locally assembled and imported tractors—from the current 14% down to 5%. They emphasized that this is not a call for tax exemption but for fair treatment, similar to tax rates applied to other sectors like automobiles.

SCA Senior Vice President Nabi Bux Sathio highlighted that Pakistan’s agriculture sector, despite being a major contributor to the GDP and employing millions, continues to suffer from limited government support. Farmers are battling rising costs, climate change impacts, water shortages, and poor crop pricing, all of which hinder productivity and sustainability.

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The SCA also proposed broader tax reforms in their submission. These include eliminating Additional Customs Duty (ACD), gradually removing Regulatory Duty (RD), and restructuring the customs tariff to support long-term agricultural growth. These steps, they argue, would make essential farming equipment more accessible.

Currently, medium- and small-scale farmers struggle to afford tractors and other machinery due to high taxes and limited financing options. Reducing these costs could significantly boost crop yields and overall agricultural efficiency, especially in rural Sindh, where farming is the main livelihood.

As the FBR prepares the federal budget, officials have confirmed that these proposals are under review. Farmers and agricultural bodies hope the government will respond with practical steps to support a sector that remains the backbone of Pakistan’s economy.

MG Pakistan airlifts key components to manage deliveries against shipment disruption due to Geopolitical instability

True Hybrid Electric, Pakistan’s first locally assembled plug-in hybrid

MG Pakistan has reaffirmed its unwavering commitment to quality and customer satisfaction by swiftly airlifting critical vehicle components in response to recent geopolitical disruptions. These proactive measures were taken to minimize delays in the delivery of the MG HS PHEV – True Hybrid Electric, Pakistan’s first locally assembled plug-in hybrid.

The ongoing geopolitical situation caused temporary shipment rerouting, resulting in minor delays in select color variants and the delivery of free 7KW chargers. In light of these challenges, MG Pakistan responded decisively by airlifting essential kits and components to resume production at full capacity.

“We are pleased to share that production is now running at full speed, and deliveries are resuming immediately,” said Syed Asif Ahmed – General Manager Marketing Division – MG Pakistan. “Our top priority is to ensure our customers receive their vehicles with minimal disruption.”

MG Pakistan expressed gratitude to its valued customers for their patience, trust, and confidence. The company emphasized that its dedication to safety, quality, and timely delivery remains stronger than ever.