Airlink set to enter EV market

LAHORE: Airlink Communications, a distributor and retailer of smartphones in Pakistan, is set to launch an electric car soon, with significant export potential as well, according to sources privy to the matter. This exciting venture into the EV market, in partnership with Xiaomi, is part of Airlink’s broader strategy to diversify beyond smartphones.

The electric car, developed in collaboration with Xiaomi, has been competing with industry giants like BYD and Tesla in China and is expected to make its debut in the Pakistani market shortly. The anticipated launch not only marks a significant milestone for Airlink but also represents a turning point for the country’s economy as it seeks to diversify its exports beyond traditional industries like textiles.

Airlink Communications, listed on the Pakistan Stock Exchange (PSX) under the symbol AIRLINK, has demonstrated remarkable growth, with its earnings per share (EPS) soaring from Rs2.5 last year to Rs11.7 this year.

While the company, along with its subsidiary Select Technologies, continues to dominate the mobile phone market, it is now preparing to expand its business into the electric vehicle (EV) sector -- an initiative that could be a game-changer for both the company and Pakistan’s economy.

In addition to this major development, Airlink has several other growth prospects on the horizon that could significantly boost the company’s earnings in the coming years. For instance, revenue from its smart TV sales is expected to start reflecting in November 2024, adding a new dimension to the company’s product offerings. It is also in the process of acquiring a 5G licence from the government, which will enhance connectivity and provide substantial financial benefits to all the stakeholders involved.

Airlink anticipates generating a minimum of Rs25 billion in revenue from laptop sales in FY25, with at least 150,000 units expected to be sold. It is engaged in advanced discussions with the government regarding mobile exports, which are expected to further increase its revenue potential.

One of the key issues being addressed in these discussions is the removal of discrepancies in the import and export of mobile-related equipment. Currently, there is an 80 per cent duty on importing charger parts, while fully assembled chargers are subject to zero duty. The government is working to eliminate these discrepancies, which will not only encourage local manufacturing but also create new export opportunities for Airlink.

With these diverse growth drivers -- spanning mobile manufacturing, smart TVs, 5G, laptops, and electric vehicles -- Airlink is poised for a substantial increase in earnings over the next few years. The company’s ability to capitalize on emerging technologies and its forward-looking strategy position it as a key player in Pakistan’s tech-driven economic future.