Pakistan Begins Production of 100% Locally Made Electric Car

Pakistan is taking an important step in its automotive history as the country begins producing electric car made entirely with locally manufactured parts. For the first time in the nation’s 77-year history, the process of building a “Made in Pakistan” electric vehicle (EV) with 100% local components has officially started. This development marks a major shift for Pakistan’s auto industry, which has long depended on imported parts and foreign technology.

The announcement was made by Engineering Development Board (EDB) CEO Hammad Mansoor during an iftar dinner hosted by the Small and Medium Enterprises Development Authority (SMEDA). According to Mansoor, the locally developed EV is expected to be launched between June and July this year. The first manufacturing plant for this project will be set up in Lahore.

Pakistan Begins Production of 100% Locally Made Electric Car

One of the most attractive features of the new EV is its expected price. Officials say the vehicle will cost less than Rs1 million, making it one of the most affordable cars in the country. The government hopes that this price range will encourage motorcycle users to shift to small electric cars, which are safer and more environmentally friendly. In Pakistan, motorcycles are the most common mode of transport for millions of families, mainly due to their affordability.

The locally produced EV will also offer practical performance. Mansoor said the car will be able to travel between 180 and 200 kilometres on a single charge. This range makes it suitable for daily commuting within cities and nearby areas. As fuel prices continue to rise, electric vehicles are becoming a more attractive option for consumers looking to reduce transportation costs.

The government is also planning to support the local auto industry through policy changes. In the upcoming federal budget, taxes on vehicles may be reduced to encourage local manufacturing. Officials believe that promoting domestic production will help reduce the country’s reliance on imports and strengthen the national economy.

Another key goal of the government is to achieve complete localisation of vehicle production. This means that all major parts of vehicles will eventually be produced within Pakistan. Such a move could allow Pakistani manufacturers to export cars at competitive prices in international markets.

The government is also encouraging small and medium enterprises (SMEs) to participate in the automotive supply chain. SMEs already play a major role in economic growth, job creation, and industrial development. By producing auto parts locally, these businesses can contribute to the expansion of Pakistan’s automotive sector.

See Also: Pakistan Passes Virtual Assets Act 2026 to Regulate Digital Financial Sector

To further promote electric mobility, the government has introduced a subsidy programme worth Rs100 billion. This initiative aims to support the production and use of electric two-wheelers and three-wheelers. Over the next four years, subsidies will be provided for around 2.2 million electric bikes and rickshaws.

In the first phase, subsidies are being given for 40,000 electric vehicles. Electric motorcycles will receive a subsidy of Rs 80,000, while electric rickshaws will receive Rs 400,000. After Eid al-Fitr, an additional 77,000 vehicles will be included in the programme, followed by another 250,000 units after July.

Pakistan is also moving toward local battery production. Four lithium battery manufacturing plants are currently being established in the country. The first factory is expected to start producing locally made lithium batteries by May 2026.

Overall, the launch of a fully local electric car represents a promising step for Pakistan’s automotive and industrial future. It shows the country’s growing focus on innovation, sustainability, and self-reliance in manufacturing.