LAHORE: As Pakistan unveils its long-anticipated New Energy Vehicle (NEV) Policy 2025-30 -- designed to cut emissions and reduce reliance on fossil fuels -- voices from within the auto sector are urging a fundamental rethink of how new technologies are priced and marketed to consumers.
Speaking at a media briefing on Saturday, General Manager of the Marketing Division at MG Motors Syed Asif Ahmed welcomed the policy but criticised the affordability of locally available hybrid electric vehicles (HEVs), saying they fail to pass on the benefits of technological progress to ordinary Pakistanis.
“HEVs in Pakistan have become a luxury for a niche segment,” Ahmed said. “Despite policy incentives, the real advantages have yet to trickle down to the average car buyer.”
He pointed out that the most expensive HEV SUV in the country -- a seven-seater -- is priced at Rs16 million ex-factory, while five-seater variants range from Rs9.6 million to Rs12 million.
“The industry must start taking affordability seriously,” he added, suggesting a shift towards plug-in hybrid electric vehicles (PHEVs), which he said are better suited to urban use and offer a meaningful electric-only range.
The NEV Policy 2025-30, announced by the Ministry of Industries, introduces formal classification of EVs, PHEVs, and hydrogen-powered vehicles under the ‘New Energy Vehicles’ umbrella -- aligning Pakistan’s definitions with global standards.
Ahmed criticised the earlier structure of tax incentives, which allowed conventional hybrids to be labelled as NEVs, a move he said primarily benefited large automotive players.
“Unfortunately, these subsidies did little for the environment or people. They only served the interests of principal companies and their local partners.”
In contrast, PHEVs offer pure electric driving for daily city commutes and hybrid capability for longer journeys, addressing the range anxiety often associated with electric vehicles.
MG Motors has introduced plug-in hybrid SUV -- the MG HS PHEV, which Ahmed described as “the best value-for-money vehicle in its class”.
He noted that MG has sold over 16,000 vehicles in Pakistan to date, including approximately 2,000 PHEVs -- reflecting growing consumer awareness of the economic benefits of plug-in hybrids as a practical urban mobility solution.
Ahmed added that MG leads in product specifications in Pakistan, with other automakers now aligning with global standards first introduced by MG in its CBU and CKD models. Since launching in 2021, MG vehicles have collectively driven over 350 million miles in Pakistan and have been tested for local fuel quality, terrain, and weather conditions.
He also pointed out that vehicle prices in Pakistan remain disproportionately high. Globally, hybrids tend to offer value when their purchase price is no more than 10 per cent higher than equivalent petrol vehicles. However, in Pakistan, this difference often exceeds 45 per cent.
For instance, a C-segment hybrid SUV can cost up to Rs12 million, while a comparable petrol model sells for around Rs8 million -- resulting in a price gap of roughly Rs4 million.
While the NEV Policy sets out a progressive framework, industry execution remains critical. With more PHEV models expected to enter the market, the key question is whether automakers will pass on the benefits to consumers -- or repeat the hybrid playbook of high margins with limited environmental impact.
“The potential is enormous,” Ahmed concluded, “but only if we prioritise real consumer value and meaningful environmental impact over short-term profits.”
