Master Changan Motors Limited (MCML) is set to introduce its first pure electric vehicle brand in Pakistan – Deepal (S07 SUV and L07 Sedan) – in the coming months, according to a reliable source.

While the company did not confirm or deny this information, a top official, without revealing the model, confirmed that launching an EV is on the cards for the company.

Under the Vast Ocean Plan, Changan, the parent company, has introduced three new EV brands of EVs for distinct customer groups - Avatr, Deepal, and Nevo.

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MCML Director Sales and Marketing Syed Shabbiruddin told Business Recorder that the company plans to introduce one of these brands of pure electric vehicles in Pakistan soon.

A source privy to the matter revealed that MCML is in advanced stages of introducing the Deepal S07, a mid-size crossover SUV and Deepal L07 a Fast-back sports Sedan produced by Deepal, Changan’s electric vehicle subsidiary, since 2023.

Changan jointly developed its EV-first platform with Huawei and CATL and already launched Deepal L07 sedan and Deepal S07 SUV in Thailand recently which is a right hand drive market like Pakistan.

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Shabbiruddin expressed optimism about EV’s potential, saying, “The EV growth potential is immense, even experts in the auto industry usually fail to realize it today.”

He highlighted three key points: the young growing population’s need for cars, estimated demand of an additional 360,000 by 2030, and the reducing EV battery cost, which dropped below $139/kWh and is expected to drop below $99/kWh by 2027, leading to a global surge in consumer-led adoption of EVs.

However, Shabbiruddin also pointed out challenges facing EVs in Pakistan, including the auto policy’s classification of EVs by battery capacity, which only incentivises those with battery capacity below 50kWh, and the selling price regulation at charging stations, resulting in low gross margins and making investment in charging infrastructure unviable.

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To address these challenges, Shabbiruddin suggested changing the classification based on battery size, incentiviisng all kinds of pure EVs that generate local employment and kickstart EV adoption in Pakistan.

He also emphasised the need for easy financing for EVs, removing the Rs3 million financing limit, and subsidising interest rates for EVs.

Additionally, he stressed the importance of increasing margins for charging stations and mass awareness programmes for handling and storage of EV batteries.

To facilitate EV adoption, Shabbiruddin said that all Changan electric cars will be supplied with a home charger, and homes installed with solar panels will have zero carbon emissions while running these EVs.

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In the second phase, Changan will collaborate and invest in the whole value chain, including setting up charging infrastructure nationwide.