Hybrid Electric Vehicles: Local production will have long-term impact on vendor industry

KARACHI: Local production of Hybrid Electric Vehicles (HEV) will have a long term impact on local vendor industry and would also reduce traveling and fuel cost substantially. “The Original Equipment Manufacturers will localize all those parts for which manufacturing technologies are available and other hybrid technology related parts with the help of the OEM”, said Mashood Ali Khan, Director Mehran Enterprise.

He said that these parts will include body structural parts, suspensions, interior and exterior, electrical circuitry etc. “Localization would be subject to techno-economic feasibility and volumes of that particular hybrid,” he said, adding that it would vary from brand to brand. Similarly, he added, Hybrid vehicles are a practical and reliable solution for Pakistan amid issues like import of fuel, deteriorating electricity distribution system, and devaluation of Pak rupee.

It is to be noted that the fuel and gas are imported in Pakistan and the electricity distribution system needs major upgrade while Pak Rupee faces continuous devaluation.

“Considering all these factors fuel and electricity prices will rise, therefore, Hybrids provide a reliable solution for mobility especially for long distances like Karachi to Lahore,” he added.

He added that the support system is available for long mile journeys hence per mile travel cost with easily available fuel would be the largest catalyzing factor in hybrid adoption in Pakistan.

Talking about the anticipated market size of local hybrids, he said the trend of electric vehicles adoption is increasing internationally. For example, he added, Europe’s approximately 40 percent of the total market is electrified that include HEVs, PHEVs and BEVs and Hybrids represent around 30 percent whereas BEVs are at 10 percent.

“We believe a similar trend is to be followed in Pakistan. In the initial phase, which may last for 5 to 10 years, the hybrids will dominate in Pakistan”, he opined.

Copyright Business Recorder, 2021