KARACHI: Pakistan is set to produce its first electric vehicle using all domestic components which marks a historic achievement for the nation after 77 years of existence. The first batch of these locally manufactured EVs is expected to be launched by June or July 2026, marking a significant milestone in the country’s automotive industry.
Hamad Mansoor, CEO of the Engineering Development Board (EDB), shared the news during an iftar dinner organized by SMEDA’s Director Mashood Khan on Thursday. He announced that the upcoming electric cars produced in the country will have a price below PKR 1 million which makes them affordable for customers who want to transition from motorcycles to cars.
The car will feature its production facility built in Lahore, and it will provide a driving range of 180 to 200 kilometers through its single battery charge. The new vehicles will be the first to meet the government’s objective of 100% localization which will reduce costs while enabling future international sales.
The Pakistani government plans to decrease vehicle taxes in its next federal budget which will create advantages for domestic manufacturers while supporting the growth of the country’s automotive industry. Mansoor explained that government efforts to implement localization will decrease electric vehicle prices while helping Pakistan compete with international markets.
Mansoor said that this initiative will create more budget-friendly electric vehicles for the domestic market which will help Pakistan’s automotive sector to break the existing market control held by major corporations. The price of cars in the country has been decreasing which he cited as evidence of this market development.
The new governmental regulation enables small and medium enterprises (SMEs) to create their own automotive components through local production. Mansoor explained that the government will provide financial support to local manufacturers because this decision dictates which companies will dominate the market according to their expectations for small and medium enterprises (SMEs).
The Prime Minister’s program will receive PKR 100 billion from the government to support electric two-wheelers and three-wheelers through this funding initiative. The four-year subsidy program will enable 220000 electric vehicles to receive financial support. The first phase will deliver financial assistance to 40000 electric two and three-wheelers.
Mansoor announced that four domestic businesses are establishing operations to produce lithium batteries, which serve as vital components for electric vehicle manufacturing. The first factory plans to launch its lithium battery product in May 2026.
The government aims to establish an independent electric vehicle sector in Pakistan which will export electric vehicles and their associated products while providing the local community access to cost-effective and sustainable vehicle options that replace conventional transportation methods.
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